- The top 5 banks at the NGX experienced a +0.17% appreciation in market capitalization resulting in a gain of N4 billion for investors.
- FBNH (+9%) was the top performer as UBA (+4.4%), and GTCO (+0.8%) also saw gains. ACCESS HOLDINGS (-12%) was the top loser as ZENITH BANK (-0.2%) also closed negative.
- The NGX Banking Index closed negative for the week with a decline of -0.99%
It was a profitable week for investors at the Nigerian Stock Exchange (NGX) as five of the largest banks, collectively known as FUGAZ, ended the week on a positive note. FBNH Plc, UBA Plc, GTCO Plc, Access Holdings Plc, and Zenith Bank Plc contributed to a combined market capitalization of N2.534 trillion, a slight increase from the previous week’s N2.530 trillion, resulting in a gain of 0.17%.
Among the tier-1 banks, three experienced gains, with FBNH emerging as the top performer, recording a significant 9% increase. However, ACCESS HOLDINGS faced a depreciation of 12%, making it the top loser among the five banks.
A summary of the performance of each bank is analyzed below.
First Bank Holdings Plc
FBNH Plc share price rose by +9% to close the week at N12.05 per share as against N11.05 recorded last week. It was the best performing bank for the week. It also ended the week with a market capitalization of N432 billion.
FBNH Plc’s earnings report for the 9-month ended 30th September 2022, showed that interest income grew by 45.3% Y-o-Y to N144 billion from N99 billion recorded in the same period of 2021. Similarly, profit after tax grew by 1155% Y-o-Y to N34 billion during the period under review, from N2.7 billion.
UBA Plc share price rose by +4.4% as its market capitalization closed the week at N282 billion as it gained N11.9 billion week-on-week.
UBA Plc released its Q3 2022 financial statements, revealing that net interest income appreciated by 29% to N105 billion from N81.1 billion, while total assets grew to N9.31 trillion from N8.45 trillion recorded during the comparable period in 2021.
In addition, the company’s profit after tax rose by 3.85% to N45.708 billion from N44.014 billion in the same period of 2021.
The market capitalization of GTCO Plc rose by +0.83% to close at N713.7 billion as against N707.8 billion recorded last week. Its share price closed the week at N24.25 as it gained +0.8% from last week.
The bank’s financial statements for the period ended 30th September 2022 revealed a growth of 23.71% in net interest income from N68.94 billion as of Q3 2021 to N85.29 billion in the current period. However, post-tax profit appreciated by 5.61% to N52.79 billion from N49.98 billion in the current period.
Access Holdings Plc
Access Holdings Plc share price fell by -12% to close at N9.9 per share as it was the worst performer for the week amongst the FUGAZ. The market capitalization depreciated by N47.9 billion to close at N351.9 billion.
Access Bank Plc released its latest earnings report for the period ended September 2022, which revealed a profit of N48 billion. This is a 31% increase compared to the profit report during the comparable period in 2021.
The financial report also showed that interest income rose by 34% from N154.941 billion to N115.543 billion in the current period.
Zenith Bank Plc
The market capitalization of Zenith Plc fell by -0.21% to close at N753 billion as against N755 billion recorded last week. It remains the most capitalized bank at the Nigerian Exchange. Its share price closed the week at N24 as it fell by -0.2% from last week.
The bank’s Q3 2022 financial result for the period that ended September revealed that interest income for the period grew by 24.7% to N215.81 billion from N173.114 billion in the corresponding period of 2021.
Profit after tax for the period also grew by 15.5% from N54.475 billion in 2021 to N62.924 billion in the current period.
What You Should Know
The NGX All-Share Index and Market Capitalization depreciated by -0.48% to close the week at 52,214.62 and N28.431 trillion respectively.
The FUGAZ banks make up over 70% of the NGX Banking sector index, hence, strongly influencing the growth or otherwise of the index. However, despite the overall positive trading sentiment of FUGAZ during the week, the NGX Banking Index closed negative for the week with a decline of -0.99%.