Fakoyejo OlalekanNigerian bank stocks were one of the best investable assets in the capital market in the first half (H1) of 2023, Prime Business Africa’s analysis has revealed.
High demand for bank shares raised investors’ investments significantly, as shareholders of the 12 Deposit Money Banks (DMBs) listed in the Nigerian Stock market shared a whopping gain of N1.83 trillion.
Investors at Guaranty Trust Bank (GTCO), Zenith Bank, Access Holdings, Stanbic IBTC and First Bank of Nigeria (FBN) Holding took the largest chunk of the gain, accounting for 18.80%, 17.49%, 15.07%, 14.47%, and 11.32% respectively.
However, out of the aforementioned lenders, only Access Holdings and Stanbic IBTC made it into the list of the top five performing bank stocks between January to June 2023.
This was disclosed following analysis of the stock activities of FBN Holding, United Bank for Africa (UBA), First City Monument Bank (FCMB), Ecobank, Zenith Bank, Sterling Financials, Access Holdings, Stanbic IBTC, Fidelity Bank, Wema Bank and Union Bank by PBA.
Top five performing bank stocks H1
The best-performing bank stocks were determined by the investment growth recorded by shareholders of the financial institutions.
Sterling Financial Holdings Company
The first six months of 2023 were a good period for shareholders of Sterling Financial Holdings Company, as their investments in the firm rose by 140%.
- This represents a gain of N56.42 billion in the first half of this year, as a surge in demand for Sterling Financial’s stock drove the equity’s share price to N3.36 kobo, at the end of June, from the N1.40 kobo reported on January 3.
- As a result, Sterling Financial’s market capitalisation increased to N96.73 billion, up from N40.30 billion at the beginning of the year.
- With a 140% growth in shareholders’ investments, Sterling Financial closed the H1 period as the best-performing bank stock and was the only firm among its peers to cross the 100% mark.
Unity Bank
Unity Bank grabbed the second spot on the list of the best-performing bank stocks in the first half of 2023 after its investors recorded 100% growth in their investments.
- The increase in their investments indicates Unity Bank is one of the most sought-after bank stocks in H1, with shareholders pocketing N6.89 billion.
- Interests in Unity Bank’s shares increased the price of the lender’s share to N1.18 kobo, from N0.59 kobo, Prime Business Africa’s analysis showed.
- This pushed Unity Bank’s valuation in the Nigerian stock market from N6.89 billion at the close of the first half, to N13.79 billion market capitalisation, making the firm the 13th most valuable lender in Nigeria.
Access Holdings
Access Holdings’ shareholders also had a lot to celebrate after the first six months of this year, considering their investments appreciated by 88.63%
- They made a whopping N277.25 billion return on investments, as Access Holdings’ growth prospects attracted the bulls in the capital market, making the firm’s asset, according to PBA, the third best-performing stock.
- With the bears caged during the six-month period in review, Access Holdings’ market capitalisation jumped to N590.05 billion, from N312.79 billion.
- This was on the back of the company’s shares appreciating during the review period to N16.6 kobo, as it cost more to buy Access Holdings’ shares on 30 June, compared to 3 January, when the price was N8.80 kobo.
- Prime Business Africa gathered that Access Holdings closed the period as Nigeria’s fifth most capitalised banking entity in the bourse.
Stanbic IBTC
Within six months, the investments of Stanbic IBTC shareholders increased by 61.43%, making the equity the fourth best-performing stock.
- The shareholders of Stanbic IBTC earned N266.26 billion between January to June. The gain pulled up the firm’s market valuation to N699.67 billion.
- Note that in early January, Stanbic IBTC was valued at N433.41 billion, with the share price placed at N33.45 kobo, however, the share price rose to N54 in June.
- At the end of H1, Stanbic IBTC retained its position as the fourth most valuable financial institution in the Nigerian stock market.
Fidelity Bank
With over 60.55% increase in shareholders’ investment value, Fidelity Bank completed the list, taking the fifth position on the best-performing stock list.
- The 60.55% appreciation in investments value handed Fidelity Bank’s shareholders N76.49 billion within the first quarter and second quarter.
- Following the gain recorded by investors, Fidelity Bank saw its market capitalisation rise from N126.33 billion to N202 billion in six months.
- Furthermore, the company’s share price increased to N7, from N4.36 kobo, as the bulls paw Fidelity Bank’s shares.
- Fidelity Bank is the ninth most valuable bank stock in the Nigerian stock market.
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