As of August 26th, 2022, the market capitalization of the top five banks—known as the Tier-1 banks or FUGAZ—depreciated by 0.66% to close at N2.20 trillion. During the trading week, investors in these banks lost a combined N14.66 billion.
Three of the top five Nigerian banks suffered from negative market sentiment after five trading days, with Access Bank Plc leading the losers and only UBA and Zenith Bank experiencing favorable sentiment.
According to data from the Nigerian Exchange (NGX), the market capitalization of the top five banks dips to N2.20 trillion to depreciate by 0.66% during the week.
The following is a summary of each bank’s performance.
Access Bank Plc
Access Bank Plc’s share price depreciated by 2.2% to close the week at N6.8, and the market capitalization lost N21.33 billion to stand at N291.47 billion.
Access Bank Plc released its Q1 2022 financial result, which revealed a profit of N57.40 billion in Q1 2021, reflecting a 9.23% increase. The statement revealed that Net interest income declined by 7.03% from N93.96 billion to N87.36 billion in the current period.
FBNH’s share price declined by 1.36% to close the week at N10.85, with its market capitalization at N389.46 billion at the end of the week. Amid sell-offs and buy-interests, at the end of the trading week.
FBNH Plc’s Q1 2022 result showed that Interest Income grew by 39.67% Y-o-Y to N109.45 billion, from N78.36 billion recorded in the same period of 2021. Similarly, Profit after tax grew significantly by 107.63% Y-o-Y to N32.44 billion during the period under review.
GT Holding Company Plc
GTCO Plc depreciated by N11.77 billion after its market capitalization declined to N588.62 billion from N600.40 billion at the end of the week’s trading session.
The decline can be attributed to the decrease in its share price, from N20.4 traded at the end of last week, to N20 as at close of business, reflecting a decrease of 1.96%.
The Q1 2022 financial result revealed that the Group reported a growth of 9.10% in net interest income from N52.43 billion recorded in the corresponding period of 2021 to N57.20 billion in the current period. However, post-tax profit depreciated by 5.13% to N43.21 billion in the current period.
United Bank for Africa Plc appreciated by 1.42% as its market capitalization closed the week at N244.52 billion to gain a total of N3.42 billion w-o-w, with its share price standing at N7.15.
UBA Plc released its Q1 2022 financials, revealing that net interest income appreciated by 14.10% to N84.87 billion from N74.38 billion, while total assets grew to N8.89 trillion from N8.54 trillion in December 2021.
In addition, the company’s profit after tax rose by 8.76% to N41.50 billion, up from N38.16 billion in the same period of 2021.
Zenith Bank Plc
Zenith Bank Plc gained N39.40 billion w-o-w after its market capitalization appreciated to N687.58 billion from N667.18 billion at the end of the week. This depreciation can be attributed to the 3.06% growth in its share price, from N21.25 traded at the end of last week, to N21.90 at the end of this week.
The bank’s H1 2022 financial result for the period ended March revealed that Net Interest income for the period grew by 184.74% to N184.74 billion from N159.94 billion in the corresponding period of 2021.
However, post-tax profit for the period reported a growth of 4.75% from N106.12 billion in 2021 to N111.41 billion in the current period.
The ASI increased by 0.63% to close at 49,682.15, helping the Nigerian Exchange Limited (NGX) post a good week-over-week result.
Since the FUGAZ banks account for more than 70% of the NSE Banking sector index, they have a significant impact on the index’s growth. As a result, the NGX Banking index increased by 1.68% from 387.22 last week to close at 384.55 points.