Stanbic, Ecobank, GTB lead decade’s top-tier banks gainers

Top tier banks listed on the Nigerian Stock Exchange (NSE) have shown wide difference in investor assessment of their performances over the past seven years, which reflected in their equity pricing.
Research shows that Stanbic IBTC, Guaranty Trust Bank, Eco bank recorded significant equity price gains in the past seven years, while First Bank led both the first tier and mid- tier banks in equity price lost since the beginning of the decade.

Using the year 2010 as benchmark, Daily Times Nigeria, analysis of the bank’s equity price growth from their 2010 March 02, benchmark rating, reflected that 0out of the 16 banks surveyed in the top tier and mid-tier ratings, only two top tier banks closed trading on March 03 2017 with its equity price ranking higher than its last seven years ranking at the beginning of the decade, on March 03, 2010.

Banks x-rayed are Zenith Bank, GTBank, First Bank, Access, Stanbic IBTC, UBA, Union Bank and Eco Bank, all in the top tier category, while other mid-tier banks are Fidelity Bank, Sterling Bank, FCMB, Unity Bank Wema bank and Skye Bank.

Stanbic IBTC recorded the highest price appreciation by about 116 per cent. The bank’s equity price for the past seven years grew by N9.42 or 116 per cent to close last week Friday March 03, 2017 at N17.58 per share, having traded at N8.17 per share on March 02, 2010.

Ecobank Nigeria followed with 46 per cent equity price growth. The bank’s stock traded at N6.20 on March 02, 2010, but closed seven years after last Friday March 03, 2017 at N9.00 per share. This shows that investors in the bank have over the past seven years realized N2.80 or 46 per cent in equity price growth.

Guaranty Trust Bank placed third with 38 per cent growth over the same period as its stock traded at N18.14 per share on March 02 2010, but closed at N24.80 per share on March. For the seven years investment period, the company gained N6.66 or about 38 per cent.

Zenith Bank traded at N16.19 per share as at March 02, 2010, but closed trading last Friday, March 03 2017 at N14.35 per share, reflecting N1.84 or 12 per cent drop in its equity price since the beginning of the 2010 decade.

Access ban also traded at N9.38 per share on March 02, 2010, but closed trade seven years after on March 03, 2017 at N6.73 per share. This showed that Access bank had within the last seven years declined by N2.65 or about 26 per cent.

On the other hand, ETI traded at N16.00 per share on March 02, 2010, but closed trading last Friday, March 03, 2017 at N9.90 per share, reflecting N6.10 or N5.94 decline on equity price over the past seven years.
UBA commanded N13.10 equity price on March 02, 2010, but closed trade Friday Marc 03 2017 at N5.01 per share, the bank’s equity price for the past seven years, dropped by N7.09 or 61 per cent.

Meanwhile, UBA in real terms recorded remarkable growth in the past seven years, taking into account the unbundling of its subsidiaries to focus on pure banking activities in keeping with the Central Bank of Nigeria new rule.In 2013, UBA unbundled its subsidiaries which led to the listing of United capital (UCAP) Plc which closed trade last Friday at N2.85 per share and African Prudential Registrars which closed trade Friday at N2.70 per share.

Meanwhile, First Bank led the decliners table since the beginning of the decade, having recorded about 81 per cent decline in its stock price since March 02, 2010. First Bank on March 02, 2010 traded at N14.58 per share, but closed trade Friday March 03 2017 at N3.15 per share, reflecting N11.43 or 81 per cent price decline over the past seven years.