Zenith Bank with N789b surpasses GT Holdings, FBN Holdings
By Jeph Ajobaju, Chief Copy Editor
Zenith Bank came up with N789.6 billion to lead FUGAZ as the most capitalised bank on the Nigerian Stock Exchange (NSE) in 2021.
FUGAZ is the acronym for Tier-1 banks in Nigeria, the five biggest by market capitalisation – FirstBank, United Bank for Africa (UBA), Guaranty Trust Bank (GTCo), Access Bank, and Zenith Bank.
GT Holdings claimed second position with N765.2 billion in the latest ranking, and FBN Holdings third with N409.2 billion.
Nigerian Exchange Group (NGX Group) banking index gained 3.32 per cent 2021, short of 10.14 per cent in 2020.
Despite the significance of NGX to stock market performance, its contribution to market capitalisation dropped year-on-year (YoY) from 13.9 per cent to 13.1 per cent in 2021.
The All-share Index rose 6.07 per cent in 2021 against the 50+ per cent world record growth in 2020.
Of the 11 Nigerian commercial banks on the NGX, FBN Holdings was the biggest capitalisation winner in 2021 and Sterling Bank the biggest loser.
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Banks by market value
Zenith Bank overtook GT Holdings with the highest market capitalisation despite only growing 1.4 per cent.
A 19.6 per cent slash in the share price of GTCo ensured Zenith Bank snatched the position, according to Nairametrics Research tracker.
The top seven most capitalised banks in 2021 are
- Zenith Bank – N789.62 billion
- GTCo – N765.2 billion
- FBN Holdings – N409.2 billion
- Access Bank – N330.6 billion
- UBA – N275.3 billion
- Union Bank – N171.8 billion
- Fidelity Bank – N73.9 billion
FBN Holdings wins big
FirstBank won big, overtaking Access Bank and UBA for third position after gaining 59.4 per cent in share value to close at N11.4 per share, up on N7.15 in 2020.
First Bank market value gained N152.6 billion in 2021 to close at N409.2 billion
Sterling Bank lost in percentage terms, as its share price dipped 26 per cent to close at N43.5 billion, GTCo lost N186.9 billion from N952.1 billion in 2020, making the newly restructured entity the biggest loser in value.
Definition
Market capitalisation is the total value of all the listed shares of a company, and is it used to determine its market value. It is calculated by multiplying the price of a stock by its total number of outstanding shares.
Market capitalisation allows investors to understand the relative size of one company compared with another.
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