Market Value of Big 5 Banks in Nigeria Slides to N3.75T
Nigerian big five banks’ combined market valuation has slipped below N4 trillion as a result of weak sentiment on banking stocks. The banking index had surged radically following the suspension of erstwhile Central Bank governor, Godwin Emefiele.
The market had reacted positively to an expectation of improved regulation in the sector after years of margin dilutive circular that bombarded operators in the past.
Apart from this, FBNH had seen its market valuation accelerating as its erstwhile chairman kick-started the process to return to the board having heard that Emefiele has been suspended. Oba Otudeko had ramped up some 14% interest in FBNH, dislodging Femi Otedola.
This fresh entry into FBNH triggered reactions that reduced positive sentiment on the group amidst a plan to raise capital to support the banking arm’s dwindling capital adequacy ratio.
FBNH share price has nosedived, steady for a while in the absence of a possible uptrend. This has kept the financial service group market valuation at about N578 billion, ranking ahead of Nigeria’s largest bank by total assets – Access Plc.
Detail from the stock market indicated that Access Holdings Plc has however maintained its position, closing at about N549 billion while UBA market valuation just crossed N600 billion following its Pan African advantage on its earnings results.
UBA’s capital adequacy position remained top-notch in the sector, according to data from Fitch Ratings while some of the tier-2 bank operators in the sector are noted to be facing fresh capital raise.
Fidelity Bank is expected to raise capital just like the Tier 1 player, FBN, and the rating watch negative slammed on FCMB suggests the group may be required to visit the local debt capital market to upgrade its position.
Zenith Bank’s market valuation has slumped to N1.004 trillion as investors’ sentiment weakened ahead of the third quarter of 2023 earnings season. Also, GTCO has given up some gain to close at N1.021 trillion, according to data from NGX.
The two rivals in the banking sector have been struggling to break out from lower N1 trillion in market cap unsuccessfully. #Market Value of Big 5 Banks in Nigeria Slides to N3.75T Naira Devaluation Deepens Economic Crisis in Nigeria