By Jeph Ajobaju, Chief Copy Editor
A market capitalisation of N840.26 billion places Guaranty Trust Bank (GTBank) ahead of other banks in Africa’s largest economy in a ranking of the top seven based on their valuation at the Nigerian Stock Exchange (NSE).
The data was collated based on end of day prices as of June 25, which categorise the market as the cumulative value of a financial institution that includes all subsidiaries and commercial assets.
A market valuation is further calculated from the stock exchange price of shares multiplied by the total unit of shares held, according to Nairametrics which did the ranking below:
Guaranty Trust Bank
GTBank is Nigeria’s most valuable bank by market value with its most recent valuation at N840.26 billion. Suspension in the trading of its shares took effect on June 18, 2021.
The suspension was put in place to prevent trading in the shares of the bank in preparation for its eventual delisting and subsequent listing of its holding company, Guaranty Trust Holding Company Plc on the NGX.
The tier 1 bank earlier reported that its total deposit in the first quarter of 2021 (Q1 2021) grew to N3.717 trillion, a 3.0 per cent surge compared to N3.611 trillion in Q1 2020.
Zenith Bank
Nigeria’s most profitable bank, known for having one of the best Corporate Governance Financial Services in Africa, comes in as the second most valuable bank in Nigeria by market capitalisation.
Its market value currently stands at N747.24 billion.
Its most recent result shows it is well-positioned for more upsides as the Tier 1 bank posted a Q1 2021 Profit Before Tax up 4 per cent year-to-year (y/y) to N61 billion on the back of a 5 per cent y/y growth in pre-provision profits.
Stanbic IBTC Bank
This fast-growing bank, known for its strong wealth and pension management system, currently has a market value of about N518.93 billion.
Investors are weighing positively on the third most valuable bank as recent macros reveal GCR Ratings (“GCR”) recently upgraded the national scale long term rating assigned to Stanbic IBTC Bank Plc to AA+(NG) from AA(NG) and affirmed the national scale short term rating at A1+(NG), with a Stable Outlook.
The upgrade is underpinned by the bank’s sound competitive position, and resilient financial profile amid the strains in Nigeria’s economy.
Access Bank
Access Bank is the fourth most valuable bank with a market value of N298.58 billion.
Last month, the bank launched a South African subsidiary known as Access Bank South after it acquired Grobank, an agricultural bank, in Q1 2021 and launched its entry into Africa’s second-largest economy.
The bank provided N100 billion loans to about four million beneficiaries last year and plans to surpass the record as it pushes out more digital loans.
FBN Holdings
First Bank is one of Nigeria’s most admired Tier 1 banks and it chimes in as the fifth most valuable bank with a market capitalisation of N260.24 billion.
The bank is enjoying investors’ confidence with its share price posting yearly returns of about 46 per cent as the brand remains at the forefront of promoting national growth and development.
First Bank is known for having one of the widest networks with over 750 branches across continents and 100,000 FirstMonie Agents across Nigeria’s 774 councils.
United Bank for Africa
UBA is the sixth most valuable Nigerian bank by market capitalisation of about N247.95 billion.
Recent price actions show investors are holding on to the stock of the Tier 1 bank as it earned N38.15 billion in profit in Q1 2021, a 26.8 per cent rise above N30.1 billion earned in Q1 2020.
In June, UBA and Deutsche Investitions- und Entwicklungsgesellschaft mbH, a German Development Finance Institution, signed a $50 million term facility agreement to support Small and Medium-Sized Enterprises (SMEs) in Nigeria.
Union Bank
Union Bank is Nigeria’s seventh most valuable bank with a market capitalisation of N155.8 billion.
Chief Executive Officer Emeka Okonkwo recently announced that the bank released N350 million in 2020 to support the fight against the spread of coronavirus in Nigeria.
Atlas Mara is the largest shareholder in the bank with about 50 per cent stake.
