- Top Nigerian banks referred to as FUGAZ were dealt a bloody nose on Friday, December 17, 2021, when over N32 billion was wiped off their shares
- The banks include Zenith, GTCo, Access and other banks also known as Tier 1 banks whose shares declined to N2.58 billion in one week
- Investors of these banks lost huge funds due to shares decline caused by apathy which experts predict happened due to market volatility
Tier-1 banks also known as FUGAZ saw their combined capitalised stocks decline to N2.58 trillion at the close of the trading week on Friday, December 17, 2021. Investors of these banks lost a total of N32.19 billion during the trading week.
Four out of the five banks had negative market sentiments after five trading days last week led by GTCo.
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Data from the Nigerian Exchange (NGX) show that the market capitalization of the top five banks has declined to N2.58 trillion to depreciate by 1.2% during the week, according to Nairametrics
How the banks performed
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FBNH’s share price appreciated, closing the week at N12.50, gaining N21.54 billion, and taking its market capitalization to N448.69 billion at the end of the week. Amid sell-offs and buy-interests, at the end of the trading week, FBNH share price appreciated by 5.0% from N11.90 to N12.50
During the week, investors traded 185.09 units of the Bank’s shares valued at N2.24 billion, making the bank’s stock the most traded in volume and value.
The bank traded the highest number of shares in volume amongst the FUGAZ, trading its highest on Wednesday with 441.93 million units of shares, valued at N5.04 billion.
FBNH Plc’s third-quarter 2021 result showed that Interest Income dropped by 12.63 per cent 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 per cent 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 per cent Y-o-Y to N40.79 billion during the period under review.
United Bank for Africa Plc depreciated by 0.6 per cent as its market capitalization closed the week at N273.60 billion, with its share price standing at N8.00.
UBA Plc traded a total of 32.25million units valued at N278 million at the end of the trading day.
In comparison, the bank’s share volume depreciated by 53.37 per cent, from 69.16 million traded last week.
UBA Plc released its Q3 2021 financials, revealing that net interest income appreciated by 23.25 per cent to N229.27 billion from N186.02 billion, while total assets grew to N8.35 trillion from N7.7 trillion.
In addition, the company’s profit after tax rose by 35.61 per cent to N104.60 billion, up from N77.13 billion in the same period of 2020.
GT Holding Company Plc
GTCo Plc lost a total of N26.49 billion after its market capitalization depreciated to N753.44 billion from N779.93 billion at the end of the week’s trading session.
The decline can be attributed to the decrease in its share price, from N26.50 traded at the end of last week, to N25.60 at the close of business, reflecting a loss of 3.40 per cent.
During the trading week, investors traded a total of 50.83million units of the bank’s shares, valued at N1.31 billion.
In contrast with the volume traded last week, share volume for this week declined by 49.18% from 100.01 million.
In Q3 2021, the group reported a decline of 7.48% in interest income from N74.52 billion recorded in the corresponding period of September 2020 to N68.94 billion in the current period. However, post-tax profit appreciated by 4.11 per cent from N48.01 billion in 2020 to N49.99 in the current period.
Access Bank Plc
Access Bank Plc’s share price dropped by 1.1% to close the week at N9.05, and the market capitalization stood at N321.68 billion.
At the end of the week, investors had traded a total of 128.57million units of the bank’s shares valued at N1.17 billion. The total volume traded for the week declined by 2.45 per cent, from a total of 131.80 million traded in the previous week.
Access Bank Plc released its Q3 2021 financial result which revealed a decline in net interest income by 3.43 per cent 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 lost N21.98 billion after its market capitalization depreciated to N778.63 billion from N800.61 billion at the end of the week. This depreciation can be attributed to the 2.7 per cent decline in its share price, from N24.80 traded at the end of last week, to N23.50 at the end of this week.
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Hence, a total of 47.80million units of the bank’s shares were traded during the week, valued at N1.19 billion. The total volume, in comparison with the previous week, depreciated by 26.93 per cent, from 65.42 million units traded last week.
The bank released its nine-month financial result for the period ended September. It revealed that Interest income for the period declined by 3.13 per cent to N308.84 billion from N318.82 billion in the corresponding period of 2020.
However, post-tax profit for the period reported a marginal growth of 0.80 per cent from N159.32 billion in 2020 to N160.59 billion in the current period.
What you should know
The Nigerian Exchange Limited (NGX) closed positive week-on-week as ASI appreciated by 1.12 per cent to close at 42,353.21
The FUGAZ banks make up over 70 per cent of the NSE Banking sector index, hence, strongly, influencing the growth or otherwise of the index; hence, the NGX banking Index closed negative to depreciate by 1.82 per cent and close at 393.38 points.
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Legit.ng reported that investors in five Nigerian banks smiled home last week(Monday 6 December to 10 December) after the value of stocks investment in First Bank, United Bank for Africa (UBA) Plc, Guaranty Trust Holding Company,
Access Bank, and Zenith Bank rose by over N151 billion. According to data from the Nigerian Exchange (NGX), the market capitalization of the top five banks grew to N2.61 trillion in the week ended Friday, 10 December.
Shareholders of GTCO made the biggest amount during the period to set a perfect tone for Christmas holidays.