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FUGAZ investors lose N42.21 billion combined during the week

The market capitalization of the top five banks, referred to as the Tier-1 banks or FUGAZ, depreciated by 1.89% to close at N2.19 trillion as at 29th of July, 2022, as investors in these banks lost a total of N42.21 billion on the trading week.

After 5 trading days of the week, all five of the tier-1 Nigerian banks suffered negative market sentiment.

According to data from the Nigerian Exchange (NGX), the market capitalization of the top five banks declined to N2.20 trillion as it depreciated by 1.89% during the week.

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

FBNH PLC

  • FBNH’s share price lost 1.79% to close the week at N11, with its market capitalization at N394.84 billion at the end of the week. Amid sell-offs and buy-interests, at the end of the trading week, FBNH lost N7.18 billion.
  • FBNH Plc’s H1 2022 result showed that Interest Income grew by 40.58% Y-o-Y to N226.35 billion, from N161.02 billion recorded in the same period of 2021. Similarly, Profit After Tax grew significantly by 48.6% Y-o-Y to N56.54 billion during the period under review.

UBA PLC

  • United Bank for Africa Plc depreciated by 1.37% as its market capitalization closed the week at N246.24 billion to lose a total of N3.42 billion w-o-w, with its share price standing at N7.20.
  • UBA Plc’s Q1 2022 financials reveals 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 N26.48 billion as its market capitalization decreased to N584.20 billion from N610.70 billion at the end of the week’s trading session.
  • The decline can be attributed to the decrease in its share price, from N20.75 traded at the end of last week to N19.85 as at the close of business, reflecting a decrease of 4.34%.
  • 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.

Access Bank Plc

  • Access Bank Plc’s share price depreciated by 1.10% to close the week at N9.00, and the market capitalization lost N3.55 billion to stand at N319.91 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 lost N1.57 billion w-o-w after its market capitalization depreciated to N649.91 billion from N651.48 billion at the end of the week. This depreciation can be attributed to the 0.24% decline in its share price, from N20.75 traded at the end of last week, to N22.70 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 negative week-on-week as ASI depreciated by 3.10% to close at 50,370.25.
  • The FUGAZ banks make up over 70% of the NSE Banking sector index, hence, strongly influencing the growth or otherwise of the index; however, the NGX banking index increased by 6.60% from 379.85 to close at 378.21 points.

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