Nigerian (NSE) Banks Industry Analysis
UpdatedSep 26, 2023
DataAggregated Company Financials
Companies14
- 7D-3.0%
- 3M4.1%
- 1Y73.7%
- YTD54.4%
Over the last 7 days, the Banks industry has dropped 3.0%, driven by a pullback from Access Holdings of 11%. This takes the industry's 12 month performance to a gain of 74%. As for the next few years, earnings are expected to grow by 1.6% per annum.
Industry Valuation and Performance
Has the Nigerian Banks Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 26 Sep 2023 | ₦4.7t | ₦6.2t | ₦2.2t | 2.9x | 2.2x | 0.8x |
| Thu, 24 Aug 2023 | ₦4.7t | ₦5.3t | ₦1.4t | 4.5x | 3.4x | 0.9x |
| Sat, 22 Jul 2023 | ₦5.0t | ₦5.1t | ₦1.3t | 4.6x | 3.8x | 1x |
| Mon, 19 Jun 2023 | ₦4.2t | ₦4.8t | ₦1.2t | 4.2x | 3.6x | 0.9x |
| Wed, 17 May 2023 | ₦3.3t | ₦4.5t | ₦1.1t | 3.1x | 2.8x | 0.7x |
| Fri, 14 Apr 2023 | ₦3.1t | ₦4.2t | ₦1.2t | 3x | 2.6x | 0.7x |
| Sun, 12 Mar 2023 | ₦3.2t | ₦4.2t | ₦1.2t | 3.1x | 2.7x | 0.8x |
| Tue, 07 Feb 2023 | ₦3.3t | ₦4.2t | ₦1.2t | 3.1x | 2.7x | 0.8x |
| Thu, 05 Jan 2023 | ₦3.0t | ₦4.1t | ₦1.2t | 2.9x | 2.6x | 0.7x |
| Sat, 03 Dec 2022 | ₦2.9t | ₦4.1t | ₦1.2t | 2.6x | 2.4x | 0.7x |
| Mon, 31 Oct 2022 | ₦2.6t | ₦4.0t | ₦1.1t | 2.5x | 2.3x | 0.7x |
| Wed, 28 Sep 2022 | ₦2.8t | ₦3.9t | ₦1.1t | 2.7x | 2.5x | 0.7x |
| Fri, 26 Aug 2022 | ₦2.9t | ₦3.8t | ₦1.1t | 2.8x | 2.6x | 0.8x |
| Sun, 24 Jul 2022 | ₦2.9t | ₦3.7t | ₦1.1t | 2.7x | 2.7x | 0.8x |
| Tue, 21 Jun 2022 | ₦2.9t | ₦3.7t | ₦1.1t | 3x | 2.7x | 0.8x |
| Thu, 19 May 2022 | ₦3.3t | ₦3.6t | ₦983.3b | 3.1x | 3.4x | 0.9x |
| Sat, 16 Apr 2022 | ₦3.1t | ₦3.5t | ₦962.3b | 3.2x | 3.2x | 0.9x |
| Mon, 14 Mar 2022 | ₦3.2t | ₦3.4t | ₦933.5b | 3.4x | 3.4x | 0.9x |
| Wed, 09 Feb 2022 | ₦3.2t | ₦3.4t | ₦949.8b | 3.6x | 3.4x | 1x |
| Fri, 07 Jan 2022 | ₦3.0t | ₦3.4t | ₦930.9b | 4.7x | 3.2x | 0.9x |
| Sun, 05 Dec 2021 | ₦2.9t | ₦3.4t | ₦865.6b | 3.2x | 3.3x | 0.8x |
| Tue, 02 Nov 2021 | ₦3.1t | ₦3.3t | ₦873.1b | 3.7x | 3.5x | 0.9x |
| Thu, 30 Sep 2021 | ₦2.7t | ₦3.3t | ₦856.8b | 3.7x | 3.2x | 0.8x |
| Sat, 28 Aug 2021 | ₦2.9t | ₦3.4t | ₦858.1b | 3.8x | 3.4x | 0.9x |
| Sun, 04 Jul 2021 | ₦2.9t | ₦3.4t | ₦858.1b | 3.8x | 3.4x | 0.9x |
| Wed, 07 Apr 2021 | ₦3.0t | ₦3.1t | ₦823.7b | 4.2x | 3.6x | 0.9x |
| Sat, 09 Jan 2021 | ₦2.9t | ₦3.1t | ₦809.2b | 3.7x | 3.6x | 0.9x |
| Fri, 02 Oct 2020 | ₦2.3t | ₦3.0t | ₦761.0b | 3.4x | 3x | 0.7x |
Price to Earnings Ratio
3x
Current Industry PE
- Investors are pessimistic on the Nigerian Banks industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 2.2x which is lower than its 3-year average PE of 3.1x.
- The industry is trading close to its 3-year average PS ratio of 0.84x.
Past Earnings Growth
- The earnings for companies in the Banks industry have grown 42% per year over the last three years.
- Revenues for these companies have grown 27% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Nigerian Financials industry?
| NG Market | -2.04% | |
| Financials | -1.44% | |
| Banks | -3.00% | |
| Regional Banks | 2.54% | |
| Diversified Banks | -3.08% | |
Industry PE
- Investors are most optimistic about the Regional Banks industry which is trading above its 3-year average PE ratio of 6.1x.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
- Investors are most pessimistic about the Diversified Banks industry, which is trading below its 3-year average of 3.1x.
Forecasted Growth
- Analysts are most optimistic on the Diversified Banks industry, expecting annual earnings growth of 1.6% over the next 5 years.
- In contrast, the Diversified Banks industry is expected to see its earnings growth to stay flat over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| UBN Union Bank of Nigeria | ₦6.80 | 3.8% +₦7.3b | 9.7% | PB0.7x | |
| JAIZBANK Jaiz Bank | ₦1.63 | 2.5% +₦1.4b | 120.3% | PB1.9x |