The top five banks, otherwise referred to as the Tier-1 banks or FUGAZ, had their combined market capitalization appreciate by 1.90% to close at N2.72 trillion, as investors in these banks gained a total of N50.67 billion at the end of February 2022.
After a total of 20 trading days for the month, 3 out of the 5 tier-1 Nigerian banks enjoyed some rallying and positive market sentiments, with Access Bank Plc leading the gainers chart.
According to data from the Nigerian Exchange (NGX), the market capitalization of the top five banks grew to N2.72 trillion to appreciate by 1.90% during the period under review.
A summary of the performances of each bank is captured below.
FBNH PLC
The share price of FBNH Plc, parent company of First Bank Nig, remained unchanged to close the month at N11.50, with its market capitalization at N412.80 billion at the end of February. Amid sell-offs and buy-interests, at the end of the month, FBNH share price stood at N11.50.
The bank is yet to release its Audited 2021 Full-year financial result. However, FBNH Plc’s third-quarter 2021 result showed that Interest Income dropped by 12.63% Y-o-Y to N260.12 billion, from N297.71 billion recorded in the same period of 2020.
Similarly, Net interest income declined by 15.45% Y-o-Y to N162.96 billion, against N192.74 billion recorded in the corresponding period of last year. Profit after tax declined significantly by 40.15% Y-o-Y to N40.79 billion during the period under review.
UBA PLC
United Bank for Africa Plc appreciated by 0.58% as its market capitalization closed the month at N295.82 billion, with its share price standing at N8.65. The bank gained N1.71 billion in market value during the month.
UBA Plc released its FY 2021 financials, revealing that net interest income appreciated by 22.06% to N316.71 billion from N259.47 billion, while total assets grew to N8.54 trillion from N7.69 trillion. In addition, the company’s profit after tax rose by 8.72% to N118.68 billion, up from N109.16 billion in the same period of 2020.
GT Holding Company Plc
GTCO Plc also remained unchanged having traded for 20 days in the month, with a market capitalization of N791.70 billion at the end of the month’s trading session.
The group’s share price stood at N26.90 as at close of business, February 28, 2022.
The Audited 2021 FY financial result revealed that the Group reported a decline of 12.77% in interest income from N288.28 billion recorded in the corresponding period of 2020 to N251.47 billion in the current period. However, post-tax profit depreciated by 13.21% to N175.00 in the current period.
Access Bank Plc
Access Bank Plc’s share price appreciated by 4.55% to close the month at N10.35 from N9.90 at the end of January, while the market capitalization stood at N367.89 billion, gaining a whooping N16 billion at the end of the month.
Access Bank Plc is yet to file its Audited 2021 FY financial statement. However, its Q3 2021 financial result revealed a decline in Net interest income by 3.43% to N67.66 billion, while profit after tax dropped by 9.11%, from N38.46 billion in September 2020 to N34.95 billion in September 2021.
Zenith Bank Plc
Zenith Bank Plc gained N32.97 billion in a month, after its market capitalization appreciated to N850.84billion from N817.88 billion at the end of February. This appreciation can be attributed to the 4.03% growth in its share price, from N26.05 traded at the end of January, to N27.10 at the end of February.
The bank’s Audited 2021 FY financial result for the period ended December, revealed that Interest income for the period grew by 7.05% to N427.60 billion from N420.81 billion in the corresponding period of 2020. However, post-tax profit for the period reported a growth of 6.07% from N230.57 billion in 2020 to N244.56 billion in the current period.
What you should know
The FUGAZ banks make up over 70% of the NSE Banking sector index, hence, strongly influencing the growth or otherwise the index; hence, the NGX banking grew by 2.79% in February 2022 from 441.35 to close at 453.53 points.