The Nigerian banking sector exited the Naira scarcity period unblemished judging by the value of equity investment netted by their shareholders in the first quarter (Q1) of 2023.
Prime Business Africa’s analysis of the stock market in the first three months of this year showed 13 banks recorded growth in their shareholders’ investment value, with only two suffering a decline.
Over N248.68 billion was gained by shareholders of the 13 Deposit Money Banks (DMBs) namely; Fidelity Bank, FCMB, Sterling Bank, Stanbic IBTC, GTCO, Zenith Bank, Ecobank, Wema Bank, Access Bank, Union Bank and UBA.
While investors holding equities of the two companies that recorded a dip, First Bank and Unity Bank, lost N6.31 billion.
Recall that in Q1 2023, the Central Bank of Nigeria (CBN) implemented its Naira redesign policy that triggered Naira scarcity in banks. It sparked sentiments that investors could dump bank stocks due to the ripple effect of the policy on bank operations.
However, with 13 out of 15 publicly-listed commercial banks recording growth in their shares between January to March, it means the bank stocks didn’t experience investor apathy during the Naira scarcity period which led to attacks on bank buildings and forced the lenders to shut down business in some areas, as well as conduct skeleton operation in other locations.
Insecurity or hostility against businesses has often been a factor that drives portfolio investors, but it didn’t create a confidence crisis among equity investors on the bank floor in the Nigerian stock market, as shareholders didn’t sell off in fear and investors continued their demand for bank stocks.
Fidelity Bank: 22.7 per cent
Fidelity Bank topped the list as shareholders’ investment grew by 22.7 per cent in Q1 2023, representing N28.68 billion gain within three months.
FCMB: 18.23 per cent
The shareholders of First City Monument Bank closed the first quarter of this year with a combined N12.67 billion gain, as investment held in the firm surged by 18.23 per cent.
Sterling Bank: 14.28 per cent
Sterling Bank took the third spot after its shareholders’ investment grew by 14.28 per cent. The lenders’ investors shared N5.76 billion gained in the first three months.
Stanbic IBTC: 12.40 per cent
Stanbic IBTC was fourth on the list with a 12.40 per cent increase in shareholders’ investments during the review period. This means shareholders of the firm closed the three months with a whopping N53.77 billion.
GTCO: 9.67 per cent
GTCO completed the list after shareholders of the financial institution recorded 9.67 per cent in the value of the investment held in the lender. This handed N66.22 billion gain to the shareholders.
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