A research conducted by investment house has revealed that 12 Nigerian banks are among the top 20 whose investment value has not yet been eroded out of the 62 African banks considered.
The 12 banks among the top 20 in the continent are: Skye Bank, Fidelity Bank, Unity Bank, FCMB, Diamond Bank, UBA Group, Access Bank, First Bank Holdings, Sterling Bank, EcoBank Nigeria, Wema Bank, and Union Bank.
According to Jude Fejokwu, Managing Director and Principal Analyst, Thaddeus Investment Advisors and Research Limited, “these 12 Nigerian banks are getting a raw deal from both foreign and local investors.”
The assessment was carried out to find out African banks that still have value based on their price as at June 22, 2015.
He explained that this model was not assessing good or bad banks; it was assessing to what extent African banks, as at June 22, 2015, are trading at prices below their performance as at their last audited report.
Fejokwu said the 62 banks were reviewed and eight metrics were assessed in determining scores with the highest score going to the bank that has the most value left on the table as at June 22, 2015.
Most of the value in the good banks, he pointed out, have been discovered and their prices have risen to reflect this so far in 2015.
The study found out that I & M Bank Kenya has the most investment value still left on the table as at June 22, 2015.
The other banks considered are Suez Canal Bank, NMBZ Zimbabwe, CBZ Holdings Zimbabwe, National Bank Kenya, NedBank SA, ETI Group, Cal Bank Ghana, Societe Generale Ghana, SBM Holdings Mauritius, Standard Bank Group SA, CFC Stanbic Kenya, Sasfin Bank SA, DCB Commercial Bank Tanzania, Barclays Africa Group, Bank of Baroda Uganda, Ghana Commercial Bank, Diamond Trust Bank Kenya, CRDB Bank Tanzania, MCB Group Mauritius, and NBS Bank Malawi.
The remaining banks are HFC Bank Ghana, Kenya Commercial Bank, First Rand Bank SA, Co-operative Bank Kenya, FMB Malawi, SCB Kenya, Equity Bank Group Kenya, Ecobank Ghana, Credit Agricole Egypt, Maendeleo Bank Tanzania, Standard Bank Malawi, Stanbic Bank Uganda, National Bank of Malawi, FNB Namibia Holdings, Commercial International Bank Egypt, SCB Botswana, SCB Ghana, Bank of Kigali, Rwanda, Bank of Windhoek Holdings, Bank of Alexandria, Egypt, FNB Botswana, Capitec Bank SA, SCB Zambia, National Bank of Kuwait, Egypt, Barclays Kenya and Zambia National Commercial Bank.