Nigeria’s Tier-1 Banks Market Valuation Rises To N3trn

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The total market value of Nigeria’s top five banks has crept closer to N3 trillion. This is according to stock market screener data.

This development represents a substantial increase as Market Forces Africa had previously indicated that the Tier-1 capital bank’s market value was less than N2.5 trillion.

According to their independent certified reports, local lenders had increases in top line despite challenges and overcame profit difficulties in the first quarter despite pressure from the currency crisis.

Trading statistics demonstrate that when the banking index increases, so too has the year-to-date performance of Tier-1 banks (FBNH, UBA, GTCO, ACCESS, Zenith -FUGAZ).

According to statistics examined by analysts, Access Holdings’ year-to-date return placed better in the tier-1 capital stock market performance. FBNH was the stock’s follower. With almost 7% growth over the last seven trading sessions on the local exchange, Zenith Bank’s appeal to value investors grew during the last week.

According to The Banker, the bank of the year’s worth increased to N897.939 billion, preserving its position as the industry’s top brand. Following solid profits growth in the first quarter of 2023, its share price reached N28.6. The financial services titan with its headquarters in Ajose Adeogun has a lot to offer. This involves consistent profitability increase year over year.

Strong earnings throughout the course of the year, according to equity experts, have enabled the bank adhere to its dividend policy. With a high purchasing recommendation, Zenith Bank continues to be the most valued stock on the local exchange.

GTCO Plc value, which is near to the top after sliding from the top and is now rated second in the banking industry, is traded at N28.3 per share. On 29.43 billion outstanding shares as of Friday, the Orange brand financial services holding firm was valued at N834.4 billion.

After intense price-cutting, FBNH, valued around N512 billion, was sold at N14.25 per share on the Nigerian stock exchange. However, Stanbic IBTC, a tier 2 lender in the market, is more valuable than the financial holding firm.

Selling at N44 as of Friday close, Tier-2 bank, Stanbic IBTC worth N570 billion. Access Holdings, the largest financial services by total asset has also seen its market valuation increase amidst stock market rallies.

Access Plc is however lower at N429 billion as of Friday’s close versus peers’ valuation. UBA’s valuation was the lowest in the category at about N320 billion. The bank share was priced at N79.35 on Friday.

Weekly stock market performance

Zenith Bank gained 7.55% in the just concluded week, while GTCO shares closed with 5% share price appreciation in the last seven days of trading sessions. FBHN’s share also jumped 5.17% amidst underwhelming earnings performance in 2022.

Meanwhile, Access Holdings’ share price gathered momentum with a 12.73% weekly gain, according to market data. Trailing Access share uptick, UBA pushed higher with a 6.86% increase in its market valuation.

Month-to-date returns

Zenith Bank recorded about a 21% gain month to date, tracking behind GTCO’s 24.62% share appreciation in the same period. In the month, FBNH’s share price has advanced more than 30%.

Access Holdings jumped by 18.66% with support from its last week’s rally that pushed prices upward. UBA share price also increased by 18.35% over a month, providing investment returns covering inflation rate exposures.

Year-to-Date Returns

Zenith Bank has boosted its market valuation with a 21.70% valuation jump. The returns track along with the inflation rate movement amidst an improved estimate for 2023. UBA gained 21.43% in the same period while FBNH Plc has seen a 33.18% year-to-date gain.

Access Holdings top the performers list with more than 45% year-to-date return, GTCO also delivered an impressive return, recording 27.13% year-to-date return.

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