Nigerian (NSE) Banks Industry Analysis

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
Mon, 30 Oct 2023	₦4.8t	₦6.5t	₦2.3t	3x	2.1x	0.7x
Wed, 27 Sep 2023	₦4.6t	₦6.2t	₦2.2t	2.9x	2.1x	0.7x
Fri, 25 Aug 2023	₦4.6t	₦5.3t	₦1.4t	4.5x	3.4x	0.9x
Sun, 23 Jul 2023	₦5.0t	₦5.1t	₦1.3t	4.6x	3.8x	1x
Tue, 20 Jun 2023	₦4.2t	₦4.8t	₦1.2t	4.3x	3.7x	0.9x
Thu, 18 May 2023	₦3.3t	₦4.5t	₦1.1t	3.1x	2.9x	0.7x
Sat, 15 Apr 2023	₦3.1t	₦4.3t	₦1.2t	3x	2.6x	0.7x
Mon, 13 Mar 2023	₦3.2t	₦4.2t	₦1.2t	3.1x	2.7x	0.8x
Wed, 08 Feb 2023	₦3.3t	₦4.2t	₦1.2t	3x	2.7x	0.8x
Fri, 06 Jan 2023	₦3.1t	₦4.1t	₦1.2t	3x	2.6x	0.7x
Sun, 04 Dec 2022	₦2.9t	₦4.1t	₦1.2t	2.6x	2.4x	0.7x
Tue, 01 Nov 2022	₦2.6t	₦4.1t	₦1.2t	2.5x	2.2x	0.6x
Thu, 29 Sep 2022	₦2.8t	₦3.9t	₦1.1t	2.7x	2.5x	0.7x
Sat, 27 Aug 2022	₦2.9t	₦3.8t	₦1.1t	2.8x	2.6x	0.8x
Mon, 25 Jul 2022	₦2.9t	₦3.7t	₦1.1t	2.7x	2.7x	0.8x
Wed, 22 Jun 2022	₦2.9t	₦3.7t	₦1.1t	3x	2.7x	0.8x
Fri, 20 May 2022	₦3.3t	₦3.6t	₦983.3b	3.1x	3.3x	0.9x
Sun, 17 Apr 2022	₦3.1t	₦3.5t	₦962.3b	3.2x	3.2x	0.9x
Tue, 15 Mar 2022	₦3.2t	₦3.4t	₦933.5b	3.4x	3.4x	0.9x
Thu, 10 Feb 2022	₦3.3t	₦3.4t	₦949.9b	3.7x	3.4x	1x
Sat, 08 Jan 2022	₦3.0t	₦3.4t	₦930.9b	3.3x	3.2x	0.9x
Mon, 06 Dec 2021	₦2.9t	₦3.4t	₦865.6b	3.2x	3.3x	0.8x
Wed, 03 Nov 2021	₦3.0t	₦3.3t	₦873.1b	3.4x	3.4x	0.9x
Fri, 01 Oct 2021	₦2.7t	₦3.3t	₦856.8b	3.7x	3.2x	0.8x
Sun, 29 Aug 2021	₦2.9t	₦3.4t	₦858.1b	3.8x	3.4x	0.9x
Mon, 05 Jul 2021	₦2.9t	₦3.4t	₦858.1b	3.8x	3.4x	0.9x
Thu, 08 Apr 2021	₦3.0t	₦3.1t	₦823.7b	4.2x	3.6x	0.9x
Sun, 10 Jan 2021	₦2.9t	₦3.1t	₦809.2b	3.7x	3.6x	0.9x

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 2.1x which is lower than its 3-year average PE of 3.1x.

Past Earnings Growth

The earnings for companies in the Banks industry have grown 44% per year over the last three years.
Revenues for these companies have grown 29% 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?

Industry PE

Investors are most optimistic about the Regional Banks industry which is trading above its 3-year average PE ratio of 6.2x.

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

Despite it being negative, analysts are least pessimistic on the Diversified Banks industry since they expect its earnings to decline by only 1.3% per year over the next 5 years, which isn't as bad as the other industries.
This is a reversal from its past annual earnings growth rate of 70% per year.

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
FBNH FBN Holdings	₦16.75	5.3% +₦30.5b	70.1%	PB0.4x
UBA United Bank for Africa	₦20.00	4.4% +₦29.1b	179.7%	PB0.4x
ACCESSCORP Access Holdings	₦17.05	3.0% +₦17.2b	118.6%	PB0.4x
FCMB FCMB Group	₦6.15	4.2% +₦5.0b	85.2%	PB0.4x
ZENITHBANK Zenith Bank	₦33.40	0.5% +₦4.7b	67.0%	PB0.6x

Jul 28

Industry Valuation and Performance