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GTCO and Nine Banks Hit N7.87 Trillion Market Value in 2024

In the new dispensation, commercial banks are facing minimum capital thresholds of N500 billion for international authorisation and N200 billion for national authorisation. In contrast, those with regional authorisation are expected to achieve an N50 billion capital floor.
Similarly, non-interest banks with national and regional authorisations will need to increase their capital to N20 billion and N10 billion, respectively.
To enable the banks to meet the minimum capital requirements, the CBN urged banks to consider injecting fresh equity capital through private placements, rights issues, and/or offers for subscription; Mergers and Acquisitions (M&As); and/or upgrades or downgrade of license authorisation.
THISDAY saw a significant increase in stock prices of the 10 banks in the 2024 financial year and it contributed to their market value on NGX.
In the period under review, the market capitalisation of GTCO added N485.62 billion to close at N1.68trillion as of December 31, 2024, when its stock price gained N16.50 per share or 40.7 per cent to close 2024 at N57.00 per share from N40.50 per share it opened for trading.


GTCO declared N1.22 trillion profit before tax in nine months of 2024, gaining the highest market value in the year under review, followed by Zenith Bank Plc.
Zenith Bank’s market capitalisation closed in 2024 at N1.43 trillion when its stock price closed in 2024 at N45.5 per share, about N6.85per share or 17.7 per cent increase from N38.65 per share when the stock closed in 2023.
United Bank for Africa (UBA) Plc and FBN Holdings Plc joined the top four financial institutions with a market value above N1 trillion.
As UBA’s stock price appreciated by N8.35 per share or 32.6 per cent to close 2024 at N34 per share, its market capitalisation increased to N1.16 trillion as of December 31, 2024.


For FBN Holdings, its market capitalisation closed in 2024 at N1.01 trillion when its stock price increased to N28.05 per share, N4.50 per share, or a 19.11 per cent increase over N23.55 per share it opened for trading last year.
Others are: Access Holdings Plc, N847.75billion; Wema Bank Plc, N195.01billion; Jaiz Bank, N133.77 billion; FCMB Group Plc, N186.15billion; Sterling Holding, N161.23billion; Ecobank, N513.8 billion; and Fidelity Bank, N560.21billion market capitalisation as of December 31, 2024.
Among the investigated banks, Access Holdings and FCMB Group are the only two financial institutions that have completed capital-raising exercises on the Exchange.  


Investors await the outcome of Sterling Holdings, GTCO, FBN Holdings, Fidelity Bank, Zenith Bank, and   UBA capital raising exercise.
On the sector’s recapitalisation, Investment banker and stockbroker, Mr. Tajudeen Olayinka in a chat with THISDAY stated that banks accessing the capital market to raise capital is a welcome development, stressing that the stock market is ready to support banks in their quest to meet CBN requirements.
“The truth is that most banks may not be able to raise as much as they require from the stock market at this time because of high interest rates, among other factors. Ordinarily, banks could have raised as much as they required at a lower cost of equity and as it is now, they may have to consider a higher cost of equity.
“For that reason, some will have to go by the way of right issues and public offers like what Fidelity Bank is doing right now. The exercise will attract foreign investors and local investors are ever ready but may not show much interest due to weaker purchasing power,” Olayinka explained.

Kayode Tokede

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    Honda Civic ₦950.000
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