10 Nigerian Banks Lose Over N87bn of Market Value in One Week As Cash Scarcity Continues

• Ten commercial banks in Nigeria experienced a loss of over N87 billion in market value
• The drop in market value occurred amid the continued challenge of cash scarcity which has disrupted bank activities
• The commercial banks' losses were calculated using their market capitalization within one week

Ten commercial banks in Nigeria have lost N87.4 billion in market value within a week of trading activities (March 2nd, 2023 to March 10th, 2023) on the Nigerian Exchange.

This is happening amid the difficulties that Nigerians face in accessing cash, and bank branches are shutting down earlier than usual due to the fear of attacks.

The affected banks include some of the largest in the country, such as First Bank, Zenith Bank, and Access Bank.

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Legit.ng also captured First City Monument Bank, Guaranty Trust Bank, Unity, United Bank for Africa, Sterling Bank, Stanbic bank, and Jaiz bank.

They all suffered significant losses in market capitalization, which measures the total value of a company's outstanding shares of stock.

Breakdown of the banks' losses

First Bank experienced the largest loss as its share price plummeted from N11.65 per share on March 2 to N11 per share on March 10.

This drop in share price resulted in a staggering loss of N23.3 billion for First Bank shareholders, as its market value decreased from N418.1 billion on March 2 to N394.8 billion on March 10.

Zenith Bank followed suit in terms of the banks with the biggest loss, as N18.8 billion was wiped off the value of the bank.

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On March 2, when the share price was at 26.4, Zenith Bank's market value stood at N828.8 billion.

However, the bank's market value dropped to N810 billion, as its share price plummeted to 25.8 per share as of the end of trading on March 10.

UBA comes next, with the value of the bank dropping by N15.3 billion in the one week under review.

As of March 2, the share price of UBA stood at N8.7. However, it dropped to N8.25 on March 10, which resulted in the market value of the bank dropping from N297.5 billion to N282.14 billion.

Other banks with losses in market value

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List of Nigeria's most valuable banks

In a similar report, Legit.ng revealed in January the list of the most valuable bank in Nigeria at the start of 2023.

Zenith Bank and GT Bank are the most valuable on the Nigerian market among the 13 banks ranked.

The banks were ranked based on their market capitalization as of Friday, January 6, 2023.

Source: Legit.ng