This week, the NGX-Banking Index advanced by 5.14% week on week (W-o-W) to close at 857.23. In the Tier 1 banking sector, GTCO, Ecobank, and Zenith maintained impressive performance year-to-date (YTD) price adjustments of 13.33%, 4.55%, and 0.52%, while other banks in this category have seen a fall in their stock prices. UBA was the highest gainer for the week, closing at N23.0k. The year-to-date change also improved from -21.83% recorded last week to -10.33% YTD.
Wema Bank and FCMB, both Tier 2 banks, have shown strong positive momentum in share price movements YTD of 9.82% and 3.38%. However, the other three banks have seen prices decline over the same period (
In the Tier 1 bank category, GTCO, Ecobank (ETI) and Zenith have seen impressive growth this year, while the other banks in this category saw a decline in their share prices (see chart 1 below).
Chart 1
Wema Bank, Sterling Bank, and Fidelity Bank, which are Tier 2 banks, show strong upwardll momentum in their share price performance this week (WTD). Stanbic IBTC However, FCMB and Stanbic IBTC experienced a decline of -1.27% and -0.93% in their closed the week flat, while other Tier 2 banks experienced a decline in their share prices week-to-date (WTD) (see chart 2 below).
Chart 2
Two banks, Zenith and Unity, made announcements this week. Zenith Bank announced a hybrid offer that includes a Rights Issue of 5.23 billion ordinary shares at N36.0k kobo for existing shareholders and a Public Offer of 2.77 billion ordinary shares available to the public at N36.50k on August 8, 2024. On August 6, 2024, the Central Bank of Nigeria (CBN) approved the merger between Unity Bank Plc and Providus Bank Limited (see Table 2 below).
