Ten Nigerian banks have emerged as the most valuable on the Nigerian Exchange Limited (NGX) in 2024The market value of the banks grew to N7.87 trillion in 2024, led by Guaranty Holdings PlcThe development comes amid recapitalisation demand of the Central Bank of Nigeria in the first quarter of 2024
Henzodaily.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The market value of Guarantee Holding Company Plc (GTCo) and nine other banks in Nigeria increased to N7.87 trillion in 2024 as the market cap rose to N62.76 trillion on the stock market on the Nigerian Exchange Limited (NGX) in the outgone year.
Findings show that the NGX banking index has experienced mixed reactions in 2024, closing positive amid corporate earnings by listed lenders on the exchange.
GTBank leads 10 Nigerian banks with the highest market value in 2024
Credit: Novartis
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CBN raises capital requirements for banks
Analysis shows that investors have traded cautiously in the banking stocks following the Central Bank of Nigeria (CBN) recapitalisation plan.
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The apex bank announced the recapitalisation exercise in the first quarter of 2024, and investors have been cautious about the stocks.
According to reports, commercial banks have been required to raise a minimum of N500 billion for international authorisation and N200 billion for local authorisation.
Banks with regional licenses have been asked to raise N50 billion in capital as a minimum requirement. In contrast, non-interest banks have been required to increase their capital to N20 and N10 billion, respectively.
CBN advised banks to consider fresh equity via private placements, rights issues, and subscription offers to meet the new requirement. The bank also asked financial institutions to consider mergers, acquisitions, and license upgrades or downgrades.
ThisDay reports that the stock market prices of the 10 banks significantly spiked in the 2024 financial year, contributing to their market value on NGX.
Nigeria’s most valuable banks
In the review period, the market cap of GTBank grew by N485.62 billion to close at N1.68 trillion as of December 31, 2024, when its stock price rose N16.50 per share or 40.7%, closing 2024 at N57.00 per share from N40.50.
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The bank declared N1.22 trillion pre-tax profit in the first nine months of 2024, gaining the highest market value in the review year.
Zenith Bank’s market cap ended 2024 at N1.43 trillion as its stock price closed the year at N45.5 per share, an increase of N6.8, representing a 17.7% increase from N38.65 per share in 2023.
UBA and First Bank on the fourth spot
United Bank for Africa (UBA) and FBN Holdings Plc ranked among the top four with a market value of N1 trillion each.
UBA’s stock price appreciated by N8.35 per share or 32.6% to close the year at N34 per share. The bank’s market cap rose to N1.16 trillion as of December 31, 2024.
FBN Holdings’ market cap closed 2024 at N1.01 trillion as its stock market price rose to N28.05 per, an N4.50 increase, representing a 19.11% increase.
Other banks are Access Holdings, with a market value of N847.75 billion, Wema Bank at N192.01 billion, Jaiz Bank at N133.77 billion, and FCMB at N186.15 billion.
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Others include Sterling Holding, with a market cap of N161.23 billion; Ecobank, with a market cap of N513.8 billion; and Fidelity Bank, with a market cap of N560 billion.
9 Nigerian banks with the highest interest earnings on loans
Henzodaily.ng previously reported that about nine Nigerian banks earned N4.85 trillion in interest income on loans and customer advances in the first nine months of 2024, representing 114.95% growth relative to N2.26 trillion recorded in 2023.
About nine Nigerian banks have earned N4.85 trillion in interest income on loans and advances to customers in the first nine months of 2024, representing 114.95% growth relative to N2.26 trillion recorded in 2023.
Nigeria’s largest bank by assets, Access Bank, led the pack with N1.13 trillion in loans as of September 2024, from N456.41 billion in the same period last year.
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Source: Henzodaily.ng