Nigerian Bank Investors Lose N100Bn in 2 Days

Investors with shares in the banking sector on the Nigerian Stock Exchange (NSE) have lost over N100.8 billion in two trading days of the week, a report this morning by Vanguard said.

It said that while 11 out of the 16 banks in the NSE began losing prices in the market on Monday, the remaining joined by Tuesday, except United Bank for Africa Plc (UBA).

The report listed banks that appreciated to include: Access Bank (5 kobo) per share to close at N12.56 per share from N12.60 per share, GTBank gained N1.00 per share to close at N47.50 per share, from N46.50 per share, Fidelity Bank gained (8kobo) per share to close at N3.28 per share from N3.20 per share and Jaiz Bank gained 4 kobo per share to close at N1.04 per share from N1.00 per share.

However, during Tuesday trading session, all the banks’ share prices dropped except UBA which gained 20 kobo per share to close at N12.20 from N12.00 per share it closed on Monday.

The report blamed the trend on the recent directive by the Central Bank of Nigeria (CBN) that restricted dividend payments by banks with high Non Performing Loans (NPLs) and low Capital Adequacy Ratio, CAR from paying dividend to their shareholders.