{"id":863,"date":"2024-12-19T08:17:26","date_gmt":"2024-12-19T08:17:26","guid":{"rendered":"https:\/\/enemconsulting.co\/Ourblog\/?p=863"},"modified":"2024-12-19T08:17:28","modified_gmt":"2024-12-19T08:17:28","slug":"the-fugaz-banks","status":"publish","type":"post","link":"https:\/\/enemconsulting.co\/Ourblog\/2024\/12\/19\/the-fugaz-banks\/","title":{"rendered":"The FUGAZ banks"},"content":{"rendered":"\n
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Investors rake in N1 trillion from FUGAZ investments in 2024\u00a0<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

The FUGAZ banks\u2019 combined market capitalization increased by N981.394 billion<\/strong>, a 20% YtD growth<\/strong>, reaching N5.932 trillion<\/strong> by December 6, 2024.<\/p>\n\n\n\n

This growth not only enriched shareholders through capital gains but also boosted confidence in the Nigerian stock market, attracting both local and foreign investments.<\/a><\/p>\n\n\n\n

In addition, the group paid an interim dividend for the first half of the year amounting to N145.221 billion,<\/strong> compared to N58.177 billion<\/strong> for the same period in 2023.<\/p>\n\n\n\n

These dividend payouts highlight the banks\u2019 profitability and commitment to enhancing shareholder returns, contributing to the overall total return<\/p>\n\n\n\n

Investor gains <\/strong><\/h4>\n\n\n\n

The increase in share prices translates into capital gains for individual investors enhancing their personal wealth.<\/p>\n\n\n\n

    \n
  • For instance, a retail investor who bought 1,000 shares of GTCO<\/strong> at the start of the year at N40.50<\/strong> would see their investment grow to N53,200<\/strong> by December 6, reflecting a 31.4% gain<\/strong>.<\/li>\n<\/ul>\n\n\n\n

    Pension funds, insurance companies, and other institutional investors that hold significant positions in FUGAZ banks benefit from the rising market capitalization.<\/p>\n\n\n\n

      \n
    • For example, Pension Fund Administrators (PFAs), which invest heavily in blue-chip stocks like FUGAZ, can generate higher returns for their contributors, indirectly impacting the financial security of millions of Nigerians.<\/li>\n<\/ul>\n\n\n\n

      The FUGAZ group\u2019s contribution to the NGX\u2019s total market capitalization strengthens the overall stock market, attracting foreign and local investment.<\/p>\n\n\n\n

      This increases liquidity and stability, providing broader economic benefits and opportunities for all market participants.<\/p>\n\n\n\n

      Market Cap progression overview <\/strong><\/h4>\n\n\n\n

      By the end of Q3 2024, the FUGAZ banks experienced notable fluctuations in market capitalization.<\/p>\n\n\n\n

      After a strong 22.14% increase<\/strong> to N6.06 trillion in Q1 2024,<\/strong> driven by solid earnings growth in 2023, the market cap dropped 22.72% to N4.673 trillion<\/strong> in the first half of 2024, mainly due to regulatory concerns and cautious investor sentiment.<\/p>\n\n\n\n

      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.<\/p>\n\n\n\n

      \n\n\n\n

      Individual Bank growth <\/strong><\/p>\n\n\n\n

      GTCO \u2013 N373.776 billion market cap growth <\/strong><\/h4>\n\n\n\n

      Guaranty Trust Holding Company Plc (GTCO) led the FUGAZ group in total market capitalization.<\/p>\n\n\n\n

      As of December 6, 2024, GTCO had added N373.776 billion<\/strong> to its market capitalization, bringing its total to N1.566 trillion, the highest among the group.<\/p>\n\n\n\n

        \n
      • GTCO began the year with a share price of N40.50<\/strong> and has since gained 31.4%<\/strong>on that price valuation, ranking it 2nd among the FUGAZ.<\/li>\n\n\n\n
      • Additionally, the bank paid an interim dividend of N1 per share<\/strong> for the first half of 2024, doubling the N0.50<\/strong> per share<\/strong> paid for the same period in 2023.<\/li>\n\n\n\n
      • The stock has relatively modest trading activity as depicted in its trading volume.<\/li>\n\n\n\n
      • Over the past three months (September 6 and December 6), the stock traded a total volume of 702 million valued at N35.9 billion<\/strong> and ranked 13th on the NGX.<\/li>\n\n\n\n
      • This suggests that the stock is a steady performer with adequate but not top-tier liquidity, reflecting a balanced level of investor interest.<\/li>\n\n\n\n
      • GTCO\u2019s pre-tax profit of N1.219 trillion<\/strong> in the first nine months of 2024, is the highest among the FUGAZ group.<\/li>\n\n\n\n
      • This suggests that investors can expect continued growth supported by the bank\u2019s strong fundamentals.<\/li>\n<\/ul>\n\n\n\n
        \n\n\n\n

        UBA \u2013 N283.855 billion market cap growth <\/strong><\/h4>\n\n\n\n

        United Bank for Africa came second with N288.885 market capital growth pushing the bank\u2019s market capitalization to N1.161 trillion,<\/strong> ranking it the 3rd most valuable FUGAZ bank.<\/p>\n\n\n\n

          \n
        • UBA began the year with a share price of N25.65<\/strong> and has since gained 32.36%<\/strong>on that price valuation, ranking it 1st among the FUGAZ.  In 2023, the bank also came top with a YtD gain of 238%<\/strong>.<\/li>\n\n\n\n
        • In terms of dividends, UBA leads the FUGAZ group. For the first half of 2024, it paid an interim dividend of N2 per share,<\/strong> representing a remarkable 300% increase<\/strong> in payout compared to the same period in 2023.<\/li>\n\n\n\n
        • The stock has relatively strong trading activity as depicted in its trading volume.<\/li>\n\n\n\n
        • The bank has jumped from the 8th most traded stock between May 23 and August 23, 2024, to the 1st most traded stock on NGX between September 9 and December 6, 2024, with a traded volume of 2.8 million valued at N77.7 billion<\/strong>.<\/li>\n<\/ul>\n\n\n\n
          \n\n\n\n

          ZENITH \u2013 N166.401 billion market cap growth <\/strong><\/h4>\n\n\n\n

          Zenith Bank saw its market capitalization surge by N166.401 billion representing 13.71% YtD growth<\/strong>, taking the bank\u2019s total market capitalization to N1.380 billion,<\/strong>ranking it as the 2nd most valuable stock in FUGAZ<\/p>\n\n\n\n

            \n
          • Last year, the share price gained 61% YtD to close at N38.65 and a market capitalization of N1.213 trillion.<\/li>\n\n\n\n
          • In Q1 2024 market capitalization jumped to N1.397 trillion and dropped to N1.121 trillion by the end of the end of first half losing about N276 billion.<\/li>\n\n\n\n
          • In addition to achieving a 13.71% YtD gain<\/strong> in share price, Zenith Bank demonstrated its commitment to shareholder value by doubling its interim dividend to N1 per share, compared to N0.50 in the first half of 2023.<\/li>\n\n\n\n
          • This significant 100% increase reflects the bank\u2019s robust financial performance and focus on rewarding its investors.<\/li>\n\n\n\n
          • The stock enjoys strong trading activating, currently ranked as the 6th most traded on the NGX over the past three months.<\/li>\n<\/ul>\n\n\n\n
            \n\n\n\n

            FBNH \u2013 N98.712 billion market cap growth <\/strong><\/h4>\n\n\n\n

            First Bank of Nigeria Holdings Plc (FBNH) has seen its market capitalization increase by N98.712 billion<\/strong> in 2024, bringing its total market cap to N944.046 billion<\/strong>.<\/p>\n\n\n\n

              \n
            • FBNH began the year with a share price of N23.55<\/strong> and has since gained 11.7%,<\/strong>reflecting positive market sentiment.<\/li>\n\n\n\n
            • In 2023, the stock posted an impressive YtD gain of 116%, with its market capitalization reaching N845.334 billion.<\/li>\n\n\n\n
            • By the end of Q1 2024, market capitalization surged to N1.276 trillion.<\/strong><\/li>\n\n\n\n
            • However, by the end of Q2 2024, FBNH\u2019s market cap dropped significantly toN786.107 billion,<\/strong> shedding N489.971 billion<\/strong> over the three-month period.<\/li>\n\n\n\n
            • Notably, FBNH showed signs of recovery starting by the end of September 2024, with a YtD gain of 14.65%, signalling renewed investor confidence.<\/li>\n\n\n\n
            • FBNH enjoys robust trading activity and is currently ranked as the 5th most traded stock on the Nigerian Stock Exchange (NGX) over the past three months.<\/li>\n\n\n\n
            • During this period, FBNH traded a total of 1.53 billion<\/strong> shares, valued at N41.2 billion,<\/strong> reflecting strong investor interest and market participation.<\/li>\n<\/ul>\n\n\n\n
              \n\n\n\n

              ACCESS \u2013 N58.650 billion market cap growth <\/strong><\/h4>\n\n\n\n

              Access Holdings Plc\u2019s market capitalization increased by N58.65 billion<\/strong>, bringing its total to N881.52 billion,<\/strong> making it the fifth largest among the FUGAZ group.<\/p>\n\n\n\n

                \n
              • In 2023, ACCESS gained 116% YtD,<\/strong> pushing market capitalization to N845.33 billion<\/strong>. It began 2024 strong, gaining 5.88% in Q1,<\/strong> which pushed its market capitalization to N870.86 billion<\/strong>.<\/li>\n\n\n\n
              • However, like its peers, the bank faced a decline in Q2, losing N197.28 billion<\/strong> in market capitalization, bringing its total down to N673.58 billion<\/strong>.<\/li>\n\n\n\n
              • By the end of November, Access Bank began to recover, with a 0.22% YtD<\/strong>increase, which strengthened further to a 5.88%<\/strong> YtD gain.<\/li>\n\n\n\n
              • To further boost its appeal to investors, the bank increased its interim dividend payout by 50%, raising it to N0.45 per share, compared to N0.30 in the first half of 2023.<\/li>\n\n\n\n
              • Notably, Access Holdings is the fourth most traded stock on the Nigerian Stock Exchange (NGX) from September 9 to December 6, 2024.<\/li>\n\n\n\n
              • During this period, ACCESSCORP traded 1.54 billion shares<\/strong>, valued at N33.5 billion<\/strong>.<\/li>\n\n\n\n
              • This high level of trading activity and volume points to strong investor confidence, liquidity, and the potential for further growth or price movements, suggesting that the company is well-positioned in the market at this time.<\/li>\n<\/ul>\n\n\n\n
                \n\n\n\n

                Outlook:<\/strong> The FUGAZ banks have not only created wealth for investors but have also cemented their role as pillars of the Nigerian financial system.<\/p>\n\n\n\n

                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.<\/p>\n\n\n\n

                By Nairametrics <\/p>\n\n\n\n

                \n","protected":false},"excerpt":{"rendered":"

                Investors rake in N1 trillion from FUGAZ investments in 2024\u00a0 The FUGAZ banks; First Bank, UBA, Guaranty Trust<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-863","post","type-post","status-publish","format-standard","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/enemconsulting.co\/Ourblog\/wp-json\/wp\/v2\/posts\/863","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enemconsulting.co\/Ourblog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enemconsulting.co\/Ourblog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enemconsulting.co\/Ourblog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/enemconsulting.co\/Ourblog\/wp-json\/wp\/v2\/comments?post=863"}],"version-history":[{"count":1,"href":"https:\/\/enemconsulting.co\/Ourblog\/wp-json\/wp\/v2\/posts\/863\/revisions"}],"predecessor-version":[{"id":865,"href":"https:\/\/enemconsulting.co\/Ourblog\/wp-json\/wp\/v2\/posts\/863\/revisions\/865"}],"wp:attachment":[{"href":"https:\/\/enemconsulting.co\/Ourblog\/wp-json\/wp\/v2\/media?parent=863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enemconsulting.co\/Ourblog\/wp-json\/wp\/v2\/categories?post=863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enemconsulting.co\/Ourblog\/wp-json\/wp\/v2\/tags?post=863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}