Most Valuable Commercial Banks in Nigeria in February 2022

Zenith Bank has cemented its position as the most capitalized financial institution listed on the Nigerian stock market, having earned N32.97 billion in the month of February 2022 to close the month at N850.85 billion.

This is according to data collected by Nairalyticsthe Nairametrics research arm of the Nigerian Exchange Group (NGX).

The Nigerian stock market saw a bullish session during the month in review as the all-stock index, which is the benchmark measure for determining market performance, rose 2.6% to close the month at 47,395. index points.

The banking sector also followed the same direction, with the NGX Banking index appreciating 3.2% month-on-month to close at 453.53 points as of February 28, 2022. In addition, market capitalization aggregate of all banks considered increased by N46. 61 billion to rise to 3.84 trillion naira.

How bank stocks fared in February

Meanwhile, Zenith Bank posted the highest gain in the reporting period, further widening the gap between first and second on the list. Specifically, the gap between Zenith Bank and GT Bank widened from 26.18 billion naira recorded in January 2022 to 56.15 billion naira at the end of February.

Top banks by market valuation

The listing kept the same arrangement as the previous month, with Zenith Bank topping the list with a valuation of N850.85 billion, accounting for 22.2% of total bank market capitalization.

  • GT Bank remained unchanged with a valuation of N791.69 billion, or 20.6% of the sector’s total valuation. Stanbic IBTC and First Bank retained their third and fourth positions with respective valuations of N453.49 billion and N412.8 billion.
  • Furthermore, Access Bank is valued at N367.89 billion on the Nigerian stock market to rank first on the list, while UBA followed with a valuation of N295.83 billion at the end of February 2022.
  • Others on the list include Ecobank Transnational (N219.28 billion), Union Bank (N183.46 billion), Fidelity Bank (N86.92 billion), FCMB (N61.39 billion), Sterling Bank (47.22 billion naira) and Wema Bank (37.03 billion naira).

Top Winners

The biggest upside in the month of review in terms of percentage change was Wema Bank, after recording a 9.1% appreciation in its market capitalization to close the month at 37.03 billion naira from 33.95 billion naira recorded at the end of the previous year. month.

  • On the other hand, Sterling Bank recorded the biggest decline with a 5.2% reduction in its market capitalization to close at 47.22 billion naira, compared to the 49.81 billion naira recorded the previous month.
  • Meanwhile, Zenith Bank recorded the largest increase in terms of monetary value with a 32.97 billion naira improvement in its market valuation from 817.88 billion naira to 850.85 billion naira. Ecobank recorded the largest monetary decline, falling 10.09 billion naira to close at 219.28 billion naira.

What you should know

  • Zenith Bank recorded a 6.07% increase in its net income in 2021, posting an after-tax profit of N244.5 billion from the N230.57 billion recorded the previous year. The Tier 1 bank has also announced the payment of a final dividend of N2.8 per 50 ordinary shares of kobo to its shareholders for the financial year 2021.
  • Its recent dividend announcement brings its total dividend for the year to N3.1, having paid an interim dividend of 30 kobo earlier the year before. Meanwhile, the dividend is subject to appropriate withholding and shareholder approval, with a qualification date of March 25, 2022.

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