Nigeria’s Top 5 Banks Total Value Climbs to N5.63Trn or $3.52bn

The combined market value of big banks increased by N468.1 billion in the last five trading sessions on the Nigerian Exchange last week. MarketForces Africa reported that investors gained N835 billion in the equities market due to five-day rally. 

The buying momentum was spurred investors sentiments amidst third quarter of 2024 earnings release. Data showed that banks accounted for 58.44% of the total increase in market capitalisation last week.  

Stockbrokers reported that the banking Index emerged as the week’s top performer, posting a 7.86% week-on-week increase, buoyed by strong investor sentiment in banking heavyweights. 

Tier-1 banks tickers—Zenith UBA, FBNH, ACCESSCORP and GTCO gathered the momentum amidst investors’ diverse expectations. 

UBA All the Way to the Moon 

While the market awaits other Tier-1 banks earnings release, UBA has dropped its unaudited financial statement for the third quarter of 2024.  The Pan African lender posted 17% year-on-year growth in profitability, which was well received by investors. 

UBA was the highest gainer, with more than N16.737 billion increase or 18.5% surge in market value over the last five days. 

Its share price climbed to N30.1, less than 11.5% below its 52 week high. Analysts noted that N34 is the highest price UBA share has reached in 12 months. 

UBA’s 34,199,421,368.00 shares outstanding was valued at N 1,029 trillion in the equities market at the close of trading session on Friday. 

FBNH Rises Ahead Public, Rights Offer Pricing 

FBN Holdings market value increased by N98.712 billion week on week due to improved sentiment in the market following its annual general meeting announcement. 

The banking group saw its share price ticking up by 10.6% to N28.75 on Friday from N26 at the beginning of the week. 

Investors’ sentiment changed positive after the group announced its decision to divest FBNQuest Merchant Bank in the third quarter of 2024. 

GCR Ratings downgraded FBNQuest, and kept the business under rating watch negative after consistently failing to meet regulatory capital requirements. 

The rating agency said FBNQuest capital metrics have declined over the last three years due to faster risk-weighted assets (RWA) growth relative to internal capital generation.

Some analysts are of the view that FBN Holdings move to divest its merchant bank was informed by FBNQuest weak capital position, which could become additional pressure on the group capital position. 

With shares outstanding totaling 35.895 billion, FBN Holdings gained 10.58% week on week to close at N1.031 trillion in the equities market. 

Zenith Bank Stays on Track 

Zenith Bank Plc market value increased by N76.921 billion over the five trading session on the Nigerian Exchange ahead of earnings release. Over the last 5-day, the bank’s share price increased on NGX by 6.54% to N39.90. 

Investors placed N1.252 trillion as market value of Zenith Bank’s 31.396 billion shares outstanding on the Nigerian Exchange ahead of third quarter earnings, from N1.176 trillion in the previous week. 

At the current market price, or valuation, Zenith bank is trading at about 17% discount to its 52 week high in the equities market. 

ACCESS Holdings: Big Head, Lower Value

Access Holdings Plc gained N72.867 billion to settle at N783.772 billion in the market from N710.904 billion at the beginning of the trading session last week. Its share price rose to N22.05 on Friday on the Nigerian Exchange from N20 at the beginning of the week. 

Despite having largest balance sheet size, Access Holdings Plc, which warehoused Access Bank, was priced lowest on huge outstanding shares listed in the market.

While its peers are closing gap against their respective 52-week high, Access Plc is still trading at significant discount to highest price it had attained in the last 12 months. 

The ticker is trading at about 28.2% below its 52 week high of N30.7, according to data from the Nigerian Exchange. Investors are also waiting for the group to release Q3 earnings in the coming weeks. 

GTCO –The most valuable Banking Group  

After gaining N58.862 billion, Guaranty Trust Holdings Company’s (Ticker: GTCO) market value increased to N1.530 trillion from N1.471 trillion in the comparable week. 

The orange brand financial services group share price increased to N52 at the close of the trading session on Friday from N50, nearing its 52 week high. 

Ticker: GTCO is trading at 3.6% discount to 52 week high in the equities market due to improved buying sentiment amidst service disruption. #Nigeria’s Top 5 Banks Total Value Climbs to N5.63Trn or $3.52bn

Airtel Africa Posts Profit after Localisation of Debts, Declares Interim Dividend