In the Nigerian equities market, investors valued the combined market capitalization of the top five listed banks at approximately N5.2 trillion, equivalent to $3.23 billion based on an exchange rate of N1,600 per US dollar.
Ahead of the release of the third-quarter earnings for 2024, investors approached bank stocks cautiously. The banking index experienced a slight dip due to portfolio rebalancing, according to data from the Nigerian Exchange.
Analysts predict that Nigerian banks with strong earnings prospects, minimal key man risks, and a solid dividend history will continue to attract buying interest. Over the past week, these major banks saw a net capital gain of about N2.45 billion. Among them, two recorded gains, one posted a loss, while two remained mostly unchanged.
Data from the Nigerian Exchange revealed that GTCO Plc retained its position as the largest bank by market capitalization, closing at N1.471 trillion on Friday. The stock price of GTCO saw an increase of N29.431 billion over the week, ending at N50 per share, up from N49 at the start of the week.
Zenith Bank Plc, headquartered on Ajose Adeogun Street, followed closely behind GTCO. Valued at N1.175 trillion, Zenith Bank’s stock traded flat week-on-week, maintaining a unit price of N37.5.
FBN Holdings reclaimed the third position among Tier-1 banks. Investors remained on the sidelines after the group announced plans for a name change and an upcoming dividend declaration at its scheduled shareholders’ meeting in November. By Friday’s close, the bank’s market value stood at N933.277 billion.
UBA was the sole decliner among the top-tier banks, losing approximately N38 billion due to a drop in its share price. At the close of trading, UBA’s market capitalization stood at N868.665 billion, ahead of its third-quarter earnings release.
Access Holdings, the largest Nigerian bank by total assets, had the lowest market capitalization among the five, valued at N710.904 billion by the end of the week. The bank experienced a slight uptick in demand, driven by the recent announcement of a 45 kobo interim dividend payout to shareholders.
