GTBank Leads Banking Stocks in Market Capitalisation

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The rising profile of Guaranty Trust Bank Plc in the financial sector has received further boost having closed 2011 as the equity with the highest market capitalisation in the

The rising profile of Guaranty Trust Bank Plc in the financial sector has received further  boost  having closed 2011  as the  equity with the highest market capitalisation  in the nation’s stock market.

Market capitalisation is the value of company on the Exchange and it is a product of its price and total paid-up shares.

GTBank closed the year with a market capitalisation of N420 billion to lead other banks. With this performance, GTBank moved from its third position in 2010 to the first position in 2011.

Zenith Bank Plc had led the banks in terms of market capitalisation in 2010, followed by First Bank of Nigeria while GTBank occupied the third position.

However, sustained demand for GTBank’s shares    engendered by growing investors’ confidence lifted the equity to the top of the banking sub-sector market capitalisation chart with N420 billion.

Zenith Bank Plc closed  in  2011 as the second most capitalised with N382.4 billion, while First Bank ended the year with a value of N290 billion. Stanbic IBTC Bank Plc closed the year with N155.6 billion.

Access Bank Plc and United Bank for Africa Plc, First City Monument Bank Plc, Skye Bank Plc and Fidelity Bank Plc  ended the year with market capitalisation of N85.9 billion; N83.7 billion; N68 billion; N50.7 billion and N47.3 billion respectively.

Some market operators, who spoke to THISDAY, said that   they were not surprised at the development, saying  GTBank  had remained consistent  in its financial performance  over the years.

For instance, a stockbroker, Mr. Ayo Oguntayo, said:  “GTBank has been a very reliable stock over the years, not only declaring impressive results, but also rewarding investors with significant dividend and bonus issues. I am not therefore surprised that the equity led the banking sub-sector in 2011 in terms of market capitalisation.”

GTBank was listed on the Nigerian Stock Exchange in 1996   and   has since then be consistent with dividend and bonus issues.

Apart from paying cash dividends, the bank had issued bonus issues eleven times between 1997 and 2010.

While the   results for the year-ended December 31, 2011 are being awaited,  GTBank  had already paid an interim dividend of   N7.2 billion for  the half year ended June 30, 2011.

The  Managing Director, GTBank, Mr. Segun Agbaje, speaking on the interim dividend assured:  "Shareholders will continue to receive positive returns on their investments as the bank remains committed to improving the quality of its service offerings, growing market share and adding value to all stakeholders in the years to come."

The bank had reported about  51 per cent growth in half -year  profit after tax from N18.2 billion  in  June 2010 to N27.5 billion in 2011.

Agbaje attributed the bank's successful outing during the half-year period to the dedication of the bank's employees, a clearly defined operating strategy and adherence to the bank's founding principles of service delivery, innovation, professionalism and integrity.