Business

FUGAZ investors lost N35 billion last week

The market capitalization of the top five banks, referred to as tier-1 banks or FUGAZ, depreciated by 1.71% to close at N2.01 trillion as of 28th of October, 2022, as investors in these banks lost a total of N35.03 billion during the trading week. 

At the end of the week, 4 tier-1 Nigerian banks suffered negative market sentiments, with FBNH leading the losers while UBA’s share price remained unchanged. 

According to data from the Nigerian Exchange (NGX), the market capitalization of the top five banks stood at N2.01 trillion after depreciating by 1.71% during the week. 

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

FBNH PLC  

FBNH’s share price depreciated by 1.71% to close the week at N9.20, with its market capitalization at N330.23 billion amid sell-offs and buy-interests at the end of the trading week. 

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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  

United Bank for Africa Plc’s share price remained unchanged as its market capitalization closed the week at N239.40 billion. The bank’s share price remained at N7 at the end of the 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. 

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GT Holding Company Plc 

GTCO Plc depreciated by N5.89 billion after its market capitalization declined to N538.59 billion from N544.49 billion at the end of the week’s trading session. 

The decline can be attributed to the decrease in its share price, from N18.50 traded at the end of last week, to N18.30 at the close of business, reflecting a decrease of 1.08%. 

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 Bank Plc  

Access Bank Plc’s share price depreciated by 0.62% to close the week at N8.00 and the market capitalization lost N1.78 billion to stand at N284.36 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

Zenith Bank Plc lost N9.4 billion w-o-w after its market capitalization depreciated to N620.08 billion from N629.50 billion at the end of the week. This depreciation can be attributed to the 1.50% decline in its share price, from N20.05 traded at the end of last week, to N19.75 at the end of this 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 by15.5% from N54.475 billion in 2021 to N62.924 billion in the current period.  

What you should know

The Nigerian Exchange Limited (NGX) closed negative week-on-week as ASI depreciated by 1.09% to close at 43,912.64.  

The FUGAZ banks make up over 70% of the NSE banking industry index. Hence, they strongly influence the growth or otherwise of the index. However, the NGX banking index declined by 0.22% from 378.89 to close at 378.05 points this week. 

 

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