The valuation of tier-2 banks listed on the Nigerian Exchange Group (NGX) has appreciated by N134 billion within four days, checks by BusinessDay reveal.
Thus, indicating investors believe in the surveyed banks’ future prospects for growth, expansion, and increased profits.
After surveying the listed tier-two banks on NGX, BusinessDay’s analysis showed Stanbic IBTC, Ecobank, Union, Fidelity, FCMB, Wema, Sterling, and Unity as the banks with the highest market value from January 7, 2022, to January 12, 2023.
The tier two banking sector market capitalisation increased to N1.1 trillion on January 12, 2023, from N985.8 billion recorded on January 7, 2022, appreciating by 13 percent year to date.
The surveyed banks also posted a combined profit of N271.8 billion in the nine-month (9M) period of 2022, up 25.3 percent from N217 billion in the corresponding period of 2021.
Here are the biggest tier-two banks by market value
Stanbic IBTC
Stanbic IBTC recorded the highest market value among the tier-two banks amounting to N414.6 billion as of January 12, 2022, a 13 percent decline from N477.3 billion in the first week of 2022.
The group began the year 2022 with a share price of N37 and 13 percent to close at N32 per share on January 12, 2023.
Stanbic IBTC nine months profit for 2022 stood at N55.2 billion, a 38.4 percent increase from N39.9 billion recorded in the same period in 2021, while its earnings per share for the 9M period of 2022 was N410 per share from N293 per share in the same period of 2021.
Ecobank Transnational Incorporated
Ecobank’s market capitalisation as of January 12, 2023 stood at N211 billion, making it the second highest tier two bank by market capitalisation. Its market capitalisation year to date grew by 34 percent from N157.4 billion recorded in the first trading week of 2022.
Its share price has since grown by 32 percent from N11.5 recorded in January 12,2023 to N8.65 in the first trading week of 2022.
Furthermore, the group reported a profit after tax of N117.4 billion in the 9M’2022, a 13 percent increase from N103.8 billion in the corresponding period of 2021, and its earnings per share from continued operations stood at N335.5 per share from N301.1 per share in the period under review.
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Union Bank Plc
Union Bank current market valuation as of January 12, 2023 rose to N186.3 billion from N168.8 billion in the first trading week of 2022, therefore representing a 10.4 percent increase in the period in review.
The bank recorded a share price of N6.4 as of January 12, 2022, indicating a 10 percent growth from N5.8 recorded in the first trading week of 2022.
The Group declared earnings per share of N60 per share for the nine-month period of 2022 from N53 per share in the same period of 2021, on the back of a 16.8 percent increase in profit for the nine-month period of 2022 which amounted to N18 billion from N15 billion in the corresponding period of 2021.
Fidelity Bank Plc
Third on the list with a market valuation of N137.6 billion as of January 12,2023 is Fidelity Bank. The tier-two bank’s market capitalisation in the period was up 122 percent from N62.1 billion in the corresponding period of 2022.
Share price of the bank as of January 12,2022 rose to 90 percent up from N4.75 to N2.51 in the first trading week of 2022.
Fidelity Bank’s profit for the nine-month period of 2022 was N34.9 billion, up 31.7 percent from N26.5 billion in the same period of 2021.
Similarly, its Earnings per share price grew by 31.5 percent to N121 per share in the nine-month period of 2022 from N92 per share in the same period of 2021.
FCMB Group
FCMB’s market valuation as of January 12, 2022, amounted to N74.2 billion, a 25 percent increase from 59.4 billion for the period dated January 7, 2022.
FCMB bank began the year with a share price of N3.75 per share and gained 25 percent at N3 per share in the first trading week of 2022.
The Group’s profit grew by 65.9 percent to N22.9 billion in the nine-month period of 2022 from N13.8 billion in the nine-month period of 2021.
Consequently, the group declared earnings per share from its continued operation of N1.16 per share in 9M’2022 compared to N0.7 per share in the corresponding period of 2021.
Wema Bank Plc
Wema Bank’s market capitalisation of N48.9 billion as of January 12, 2023 represents a 349 percent increase from N10.88 billion recorded in the first week of 2022.
Share price of the bank as of January 12, 2023 amounts to N3.8, a 347 percent growth from N0.85 in the first trading week of 2022.
The bank made a profit after tax of N8.1 billion in the 9M’2022, a 30.6 percent increase from N6.2 billion in the corresponding period of 2021, while its Earnings per share from continued operations stood at N84.8 per share, up from N21.6 per share in the period under review.
Sterling Bank Plc
Sterling Bank’s current market valuation of N41.7 billion dipped by 5.6 percent on January 12, 2023 from N44.2 billion in the first trading week of 2022.
Share price as of January 12, 2023 fell by 5.8 percent from N1.45 to N1.54 recorded in the first trading week of 2022, according to data gathered from the weekly summary available on the NGX.
The profit after tax reported by the bank totaled N13.4 billion in the nine-month period of 2022, representing a 41.1 percent growth from N9.5 in the nine-month period of 2021.
The bank also declared earnings per share of N47 per share for the nine-month period of 2022 compared to N33 per share in the corresponding period of 2021.
Unity Bank Plc
Unity Bank market valuation after trading period on the 12th of January 2023 stood at N6.5 billion, up from N5.8 billion in the first trading week of 2022.
Share price as of January 12, 2023 increased to 12 percent from N0.56 to N0.5 recorded in the first trading week of 2022, according to data gathered from the weekly summary available on the NGX.
The Bank saw a 6.3 percent jump in its profit after tax to N2 billion in the nine-months of 2022 from N1.9 billion in the same period of 2021.
It also declared earnings per share from its continued operation of N17.3 per share in the nine-month period of 2022 compared to N16.5 per share in the corresponding period of 2021.
