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By Chinwendu Obienyi
As of year-to-date, Nigeria’s Tier-1 banks have notably boosted the market capitalisation of the Nigerian Exchange Limited (NGX), hitting N5.93 trillion.
This highlights the dominance and strong performance of these leading financial institutions in Nigeria’s equities market, reflecting a 20% year-to-date growth as of December 6, 2024. Their contributions are not only generating wealth but also adding significant value to investors active on the exchange.
The banks include; Access Holdings Plc, FBN Holdings Limited, Guaranty Trust Bank Holding Company (GTCO), UBA and Zenith Bank.
Earlier in the year, the banks after being mandated to recapitalise by the Central Bank of Nigeria (CBN) moved to the capital market to access funds to drive the move.
As of October 2024, banks like GTCO (N400.5 billion) Access Holdings Plc (N350 billion), Fidelity Bank (N127 billion) and FCMB (N111 billion) had raised approximately N1.3 trillion as the race for recapitulation intensified.
Furthermore, strong financial results from the Tier-1 banks were key drivers of the growth.
For instance, Guaranty Trust Holding Company Plc (GTCO) led the FUGAZ group in total market capitalization. As of December 6, 2024, GTCO had added N373.776 billion to its market capitalization, bringing its total to N1.566 trillion, the highest among the group.
Also, GTCO’s pre-tax profit of N1.219 trillion in the first nine months of 2024, is the highest among the FUGAZ group.
United Bank for Africa came second with N288.885 market capital growth pushing the bank’s market capitalization to N1.161 trillion, ranking it the 3rd most valuable FUGAZ bank.
Zenith Bank saw its market capitalisation surge by N166.401 billion representing 13.71% YtD growth, taking the bank’s total market capitalization to N1.380 billion, ranking it as the 2nd most valuable stock in FUGAZ.
First Bank of Nigeria Holdings Plc (FBNH) has seen its market capitalization increase by N98.712 billion in 2024, bringing its total market cap to N944.046 billion.
Access Holdings Plc’s market capitalisation increased by N58.65 billion, bringing its total to N881.52 billion, making it the fifth largest among the FUGAZ group.
This meant that their contribution reached N5.932 trillion.
Reacting to the analysis, market operators noted that the recovery and growth in FUGAZ banks’ market caps have boosted confidence on the trading floor of the NGX attracting both local and foreign investments.
They added that strong fundamentals, consistent profitability, and proactive regulatory management suggest these banks will remain attractive for investors seeking long-term growth.
“The FUGAZ banks’ performance underscores their pivotal role in Nigeria’s economy and highlights their potential as investment anchors in the financial sector.
Investors view Tier-1 banks as stable and lucrative investments due to their resilience and strong fundamentals. Hence, This performance not only reflects the banks’ operational strengths but also highlights their critical role in driving the overall NGX market performance”, they said.
Meanwhile, at the close of trading activities on the floor of the NGX, market capitalisation closed at N59.531 trillion.
