The FUGAZ banks; First Bank, UBA, Guaranty Trust Holding Company (GTCO), Access Bank, and Zenith Bank have continued to create wealth and add value to investors.
The FUGAZ banks’ combined market capitalization increased by N981.394 billion, a 20% YtD growth, reaching N5.932 trillion by December 6, 2024.
This growth not only enriched shareholders through capital gains but also boosted confidence in the Nigerian stock market, attracting both local and foreign investments.
In addition, the group paid an interim dividend for the first half of the year amounting to N145.221 billion, compared to N58.177 billion for the same period in 2023.
These dividend payouts highlight the banks’ profitability and commitment to enhancing shareholder returns, contributing to the overall total return
The increase in share prices translates into capital gains for individual investors enhancing their personal wealth.
Pension funds, insurance companies, and other institutional investors that hold significant positions in FUGAZ banks benefit from the rising market capitalization.
The FUGAZ group’s contribution to the NGX’s total market capitalization strengthens the overall stock market, attracting foreign and local investment.
This increases liquidity and stability, providing broader economic benefits and opportunities for all market participants.
By the end of Q3 2024, the FUGAZ banks experienced notable fluctuations in market capitalization.
After a strong 22.14% increase to N6.06 trillion in Q1 2024, driven by solid earnings growth in 2023, the market cap dropped 22.72% to N4.673 trillion in the first half of 2024, mainly due to regulatory concerns and cautious investor sentiment.
However, in Q3 2024, the banks rebounded with a 12.72% recovery, reaching N5.267 trillion, and further rose to N5.932 trillion as of December 6, 2024, reflecting improved investor confidence following successful public offers and rights issues.
Individual Bank growth
Guaranty Trust Holding Company Plc (GTCO) led the FUGAZ group in total market capitalization.
As of December 6, 2024, GTCO had added N373.776 billion to its market capitalization, bringing its total to N1.566 trillion, the highest among the group.
United Bank for Africa came second with N288.885 market capital growth pushing the bank’s market capitalization to N1.161 trillion, ranking it the 3rd most valuable FUGAZ bank.
United Bank for Africa came second with N288.885 market capital growth pushing the bank’s market capitalization to N1.161 trillion, ranking it the 3rd most valuable FUGAZ bank.
Zenith Bank saw its market capitalization surge by N166.401 billion representing 13.71% YtD growth, taking the bank’s total market capitalization to N1.380 billion, ranking it as the 2nd most valuable stock in FUGAZ
First Bank of Nigeria Holdings Plc (FBNH) has seen its market capitalization increase by N98.712 billion in 2024, bringing its total market cap to N944.046 billion.
Access Holdings Plc’s market capitalization increased by N58.65 billion, bringing its total to N881.52 billion, making it the fifth largest among the FUGAZ group.
Outlook: The FUGAZ banks have not only created wealth for investors but have also cemented their role as pillars of the Nigerian financial system.
With strong fundamentals, increased trading activity, and stable market performance, these banks remain attractive investment options with the potential for continued growth in the coming years.