The Business NG - May 06, 2024

In dit nummer

Today issue focuses on some Nigeria's top banks, like FBNH, UBA, GTCO, and Access Bank, that have fallen out of the trillion-naira market capitalization club, leaving Zenith Bank as the sole remaining member.

This development follows a challenging April for Nigerian banks, with all major banking stocks experiencing losses. Despite possessing significant total and net assets, these banks are undervalued, with a price-to-book ratio of 0.43 or 43%, indicating a substantial undervaluation by investors. The price-to-book ratio measures the market value of a company's shares relative to its net assets. The banks' market capitalization has plummeted significantly, with:

- Access Bank falling to N598.9 billion, down from N1 trillion in January
- UBA dropping to N817.3 billion, down from N1 trillion in January
- FBN Holdings falling to N857.8 billion, down from N1 trillion in early April