July’s Joy For First Bank, UBA, Gtbank, Access and Zenith Bank as investors combined gain hits N25 billion

The market capitalization of the top five banks, referred to as the Tier-1 banks or FUGAZ, appreciated by 1.12% to close at N2.29 trillion as at 1st of July, 2022, as investors in these banks gained a total of N25.46 billion during the trading week.

After 5 trading days of the week, 2 of the 5 tier-1 Nigerian banks enjoyed positive market sentiments, with FBNH Plc leading the gainers.

According to data from the Nigerian Exchange (NGX), the market capitalization of the top five banks grew to N2.29 trillion to appreciate by 1.12% during the week.

A summary of the performance of each bank is captured below.

FBNH PLC

FBNH’s share price grew by 9.95% to close the week at N11.60, with its market capitalization at N416.39 billion at the end of the week. Amid sell-offs and buy-interests, at the end of the trading week, FBNH’s share price stood at N11.60.

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.

UBA PLC

United Bank for Africa Plc depreciated by 0.67% as its market capitalization closed the week at N253.08 billion losing a total of N1.71 billion w-o-w, with its share price standing at N7.40.

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.

GT Holding Company Plc

GTCO Plc depreciated by N13.24 billion after its market capitalization declined to N601.87 billion from N615.11 billion at the end of the week’s trading session.

The decline can be attributed to the decrease in its share price, from N20.90 traded at the end of last week, to N20.45 as at the close of business, reflecting a decrease of 2.15%.

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.

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Access Bank Plc

Access Bank Plc’s share price depreciated by 1.05% to close the week at N9.40, and the market capitalization lost N3.55 billion to stand at N334.13 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.

Zenith Bank Plc

Zenith Bank Plc gained N6.28 billion w-o-w after its market capitalization appreciated to N686.01 billion from N679.73 billion at the end of the week. This appreciation can be attributed to the 1.92% growth in its share price, from N21.65 traded at the end of last week, to N21.85 at the end of this week.

The bank’s Q1 2022 financial result for the period ended March revealed that Net Interest income for the period grew by 20.89% to N100.54 billion from N83.17 billion in the corresponding period of 2021. However, post-tax profit for the period reported a growth of 9.68% from N53.06 billion in 2021 to N58.20 billion in the current period.

What you should know

The Nigerian Exchange Limited (NGX) closed positive week-on-week as ASI appreciated by 0.24% to close at 51,829.67.

The FUGAZ banks make up over 70% of the NSE Banking sector index, hence, strongly influencing the growth or otherwise of the index; hence, the NGX banking index grew by 1.06% from 395.02 to close at 399.22 points.