Zenith bank edge GTCO by N51 Billion in Market Capitalization

As trading session closed on Thursday, 13 January 2021, Zenith bank share price traded at a higher rate compared to its fierce competitor Guaranty Trust bank. Currently, Zenith bank plc is amongst the prime companies listed on the Nigerian stock exchange (NSE) in terms of liquidity.

Zenith bank watched as their share price gained 0.20% on the day, the commercial bank traded 4.5–million-unit share (N114.2 million) in the NSE while their stock price closed at N25.50. Meanwhile, Guaranty Trust bank traded 10.9 million unit shares (277.9 Million) and closed at N25.45.

The share price gain by Zenith bank resulted in its increase in market capitalization, with Zenith bank plc’s market cap rising by N51 billion to N800 billion and GTCO maintaining a N749 billion market capitalization.

A reason for the disparity in share price between GTCO and Zenith Bank is the direct correlation between share prices and financial performance of both companies. According to financial statements released in the third-quarter 2021, Zenith Bank’s net interest income stood at approximately N234.8 billion, while GTCo was able to generate N162.9 billion.

Furthermore, GT Co’s shares have started the year on the downside as it has lost 2.12% Year-to-Date (YtD) in 2022. We see the opposite in Zenith Bank as its share price is up by 1.39% YtD.

Nonetheless, Zenith bank plc has a larger amount of outstanding shares than GTCO, Zenith’s  Profit after tax in the third quarter  was quoted at N160.6 million. While, Guaranty’s interest income even as Guaranty’s PAT stood at N129.4 billion.