At the end of January 2022, Zenith Bank, GT Bank and Stanbic IBTC Holdings retained the top spot among the largest commercial banks in Nigeria, with the market capitalization of the thirteen listed Nigerian banks increasing by 194.5 billion naira in the month under review. .
This is according to data collected by Nairalytics, the Nairametrics research arm of the Nigerian Exchange Group (NGX).
The market capitalization of the banking sector increased from a recorded 6.35 trillion naira at the end of 2021 to close at 6.73 trillion naira in January 2022, indicating a 3.1% increase month-on-month. Similarly, the NGX banking index gained 8.7% to close at 441.4 index points in the month under review.
Additionally, the All-Share stock market index rose 9.15% in January, closing at 46,624.67 points while the market capitalization closed at 25.1 trillion naira.
According to the Nairametrics tracker on the market capitalization of listed banks, Zenith Bank recorded the largest increase during the review month, registering a market capitalization of 28.3 billion naira, while Wema Bank recorded the largest increase in percentage terms from the previous month.
Top Banks by Market Value
Zenith Bank retained the top spot with a market valuation of N817.9 billion, closely followed by GT Bank with a market capitalization of N791.7 billion. Stanbic IBTC with a valuation of N463.2 billion ranks third, while First Bank’s valuation stood at N412.8 billion at the end of January 2022.
On the other hand, Unity Bank has the lowest market capitalization at 5.96 billion naira, after a drop of 351 million naira from the previous month. Jaiz Bank also followed with a valuation of N23.5 billion, although a gain of N4.1 billion in the month of January 2022.
Others on the list include Access Bank with 351.9 billion naira, UBA (294.1 billion naira), Union Bank (174.7 billion naira), Fidelity Bank (81.4 billion naira), FCMB ( 61.9 billion naira), Sterling Bank (49.8 billion naira) and Wema Bank with a valuation of 33.9 billion naira.
The most improved banks
Zenith Bank also topped the list of most improved banks in terms of monetary value with a gain of N28.3 billion, due to its share price rising 3.58% to end the month. at N26.05 per share. GT Bank followed with a market appreciation of N26.49 billion, with its share price rising 3.46% in the month under review.
Access Bank posted a gain of N21.3 billion, while UBA rose N18.8 billion to close at N294.1 billion in January 2022.
In contrast, Wema Bank increased its valuation by 22.2% in the month under review, representing the bank that improved the most in percentage terms from the previous month, followed by Jaiz Bank, which gained 21 .4% and Sterling Bank with a gain of 14.6% during the month under review.
What you should know
- The Nigerian stock market received a positive reception for the new year, with buy sentiment investors shifting their money into equities, with the banking sector receiving some of that investment, as evidenced by the performance of the banking index. .
- The rally could be attributed to the possibility for investors to derive additional income from companies paying dividends as the public prepares for the publication of their annual 2021 financial statements. A major incentive for investors to buy shares of companies with a history of paying dividends.
- It is imperative to add that the banking sector accounts for 26.8% of the total market capitalization of the Nigerian stock market. It should be noted that Ecobank Transnational Incorporated (ETI) has not been included in this report.