The market capitalization of the top five banks referred to as the Tier-1 banks increased to N2.43 trillion at the close of business on the 30th of September 2021 as investors in these banks gained N35.82 billion during the trading week.
During the 4-day week, most of the FUGAZ banks enjoyed positive market sentiments and recorded gains while one bank recorded a decline.
According to data from the Nigerian Exchange (NGX), the market capitalization of the top five banks grew to N2.43 trillion, an appreciation of 1.5% during the week. A summary of the performance of each bank is captured below.
First Bank Holdings Nig. Plc gained N19.74 billion as its market capitalization grew from N269.21 billion to N288.96 billion at the end of the week, making up 11% of the FUGAZ capitalization. Amid sell-offs and buy-interests, at the end of the four-day trading session, FBNH share price appreciated from N7.50 to N8.05.
During the week, investors traded about 325,355,008 units of the Bank’s shares valued at N2.53 billion, making the bank’s stock the most traded in value amongst the FUGAZ.
The volume of shares traded appreciated by 858.07%, when compared to 33.96 million units traded the previous week. The bank traded the highest number of shares in volume amongst the FUGAZ, trading its highest on Wednesday of 264.69 million units of shares, valued at N2.05 billion.
FBNH Plc’s second-quarter result revealed that Interest Income for the period decreased by 19.36%. However, net profit for the period reported a growth of 79.76% from N12.50 billion in Q2 2020 to N22.47 billion in Q2 2021.
United Bank for Nigeria Plc gained N1.71 billion as its market capitalization closed the week at N259.92 billion, with its share price closing the trading week at N7.55.
UBA Plc, during the week, traded a total of 31,299,591 units valued at N234.00 million. The bank’s share volume depreciated by 36.68%, from 49.43 million traded last week.
UBA Plc released its half-year financials revealing a 33.4% growth in profit before tax which rose to N76.2 billion, up from N57.1 billion in the same period of 2020. In addition, the company’s gross earnings appreciated by 5.0% to N316 billion from N300.6 billion, while total assets grew to N8.3 trillion from N7.7 trillion.
GT Holding Company Plc
GTCO Plc gained a total of N8.83 billion after market capitalization appreciated to N825.54 billion from N816.72 at the end of the week’s trading session.
The growth can be attributed to the increase in the share price, from N27.75 traded at the end of last week, to N28.05 at the close of business on Thursday, reflecting a growth of 1.1%.
During the trading week, investors traded a total of 39,987,992 units of the bank’s shares valued at N1.11 billion. In contrast with the volume traded last week, share volume for this week increased by 104.45% from 19.56 million.
The Group reported a decline of 15.2% in profit before tax from N109.7 billion recorded in the corresponding period of June 2020 to N93.1 billion in the current period. Also, post-tax profit depreciated by 15.76% from N94.27 billion in 2020 to N79.41 in the current period.
Access Bank Plc
Access Bank Plc’s share price appreciated by 2.2% from N8.95 to N9.15 at the end of the week as the market capitalization grew from N318.13 billion to N325.24 billion to close the week.
At the end of the week, investors had traded a total of 25,031,038 units of the bank’s shares valued at N228.02 million. The total volume traded for the week declined by 68.24%, from a total of 78.82 million traded in the previous week.
Access Bank Plc released its Q2 financial result for the year which recorded an improvement in gross earnings by 14 percent to N450.6 billion, while profit rose by 42.4 percent, surging from N61.03 billion in June 2020 to N86.94 billion in half-year, 2021.
The bank has approved the payment of an interim dividend, to the tune of N0.30 which has been paid to existing shareholders on the 29th of September, 2021.
Zenith Bank Plc
Zenith Bank Plc lost N1.57 billion after its market capitalization depreciated to N736.25 billion from N737.82 billion at the end of the week. This decline can be attributed to the 0.2% decrease in its share price from N23.50 traded at the end of last week, to N23.45 at the end of this week.
A total of 33,200,973 units of the bank’s shares were traded during the week, valued at N777.85 million. The total volume, in comparison with the previous week, depreciated by 18.35%, from 40.66 million units traded last week.
The bank released their second-quarter result which revealed that net Interest Income for the period increased by 1.61%. However, post-tax profit for the period reported a slight growth of 2.21% from N103.83 billion in Q2 2020 to N106.12 billion in Q2 2021.
Zenith Bank approved an interim dividend of N0.30 which was paid to shareholders on the 20th of September, 2021.
What you should know
The Nigerian Exchange Limited (NGX) closed positive week-on-week as ASI appreciated by 3.23% to close at 40,221.17.
The FUGAZ banks make up over 70% of the NSE Banking Sector Index, hence, strongly influence the growth or otherwise of the index.
The NGX Banking Index closed positive to appreciate by 0.60% and closed at 370.85.