FUGAZ investors lose over N30 billion combined during the week

After 5 trading days of the week, 3 of the 5 tier-1 Nigerian banks suffered negative market sentiments

The market capitalization of the top five banks, referred to as the Tier-1 banks or FUGAZ, depreciated by 1.14% to close at N2.68 trillion as at 18th of March, 2022, as investors in these banks lost a total of N30.99 billion during the trading week.

After 5 trading days of the week, 3 of the 5 tier-1 Nigerian banks suffered negative market sentiments, with Access Bank Plc leading the decliners.

According to data from the Nigerian Exchange (NGX), the market capitalization of the top five banks declined to N2.68 trillion to depreciate by 1.14% during the week.

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

FBNH Plc

FBNH’s share price grew by 3.00% to close the week at N11.90, with its market capitalization at N427.15 billion at the end of the week. Amid sell-offs and buy-interests, at the end of the trading week, FBNH share price stood at N11.90.

FBNH Plc’s third-quarter 2021 result showed that Interest Income dropped by 12.63% 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% 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% Y-o-Y to N40.79 billion during the period under review.

The bank is yet to release its Audited 2021 Full-year financial result.

UBA Plc

United Bank for Africa Plc appreciated by 1.17% as its market capitalization closed the week at N295.82 billion gaining a total of N3.42 billion w-o-w, with its share price standing at N8.65.

UBA Plc released its FY 2021 financials, revealing that net interest income appreciated by 22.06% to N316.71 billion from N259.47 billion, while total assets grew to N8.54 trillion from N7.69 trillion. In addition, the bank’s profit after tax rose by 8.72% to N118.68 billion, up from N109.16 billion in the same period of 2020.

GT Holding Company Plc

GTCO Plc depreciated by N23.54 billion after its market capitalization declined to N771.10 billion from N794.64 billion at the end of the week’s trading session.

The decline can be attributed to the decrease in its share price, from N27.00 traded at the end of last week, to N26.20 as at close of business, reflecting a decrease of 2.96%.

The Audited 2021 FY financial result revealed that the Group reported a decline of 12.77% in interest income from N288.28 billion recorded in the corresponding period of 2020 to N251.47 billion in the current period. However, post-tax profit depreciated by 13.21% to N175.00 in the current period.

Access Bank Plc

Access Bank Plc’s share price declined by 3.45% to close the week at N9.80, and the market capitalization lost N12.44 billion to stand at N348.34 billion.

Access Bank Plc released its 2021 Full-year financial result, which revealed a profit of N160 billion in 2021, reflecting a 51.13% increase year on year. The statement revealed that in FY 2021, Net interest income grew by 14.64% from N262.95 billion to N301.46 billion in the current period.

Zenith Bank Plc

Zenith Bank Plc lost N10.99 billion w-o-w after its market capitalization depreciated to N836.72 billion from N847.71 billion at the end of the week. This depreciation can be attributed to the 1.30% decline in its share price, from N27.00 traded at the end of last week, to N26.65 at the end of this week.

The bank’s Audited 2021 FY financial result for the period ended December, revealed that Interest income for the period grew by 7.05% to N427.60 billion from N420.81 billion in the corresponding period of 2020. However, post-tax profit for the period reported a growth of 6.07% from N230.57 billion in 2020 to N244.56 billion in the current period.

What you should know
The Nigerian Exchange Limited (NGX) closed negative week-on-week as ASI depreciated by 0.33% to close at 47,282.67.

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 declined by 0.17% from 444.46 to close at 443.72 points.