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Market Cap of UK’s Three Largest Banks Slumped by $75B in a Year

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BRITAIN-EU-STOCKS-BREXIT-POLITICS

Market Cap of UK’s Three Largest Banks Slumped by $75B in a Year

The COVID-19 pandemic has hit the European banking system hard, with many of the largest banks coping much worse with the crisis than their US peers. While the US financial giants managed to boost their investment banking and trading revenues and better position themselves in times of economic uncertainty, major European banks all reported huge losses in 2020, causing their market cap to plunge deep below 2019 levels.

According to data presented by BuyShares, the combined market capitalization of HSBC Holdings, Lloyds Banking Group and Barclays, as the three largest UK banks, hit $184bn last week, almost a $75 drop year-over-year.

Europe’s Largest Bank HSBC Lost $46.4B in Market Capitalization

Europe’s largest bank by assets, HSBC, has suffered significant losses amid the COVID-19 crisis. The Group’s earnings report revealed revenues for the nine months of 2020 amounted to $38.7bn, a 9% drop in a year, primarily due to the progressive impact of interest rate reductions across its global businesses. Reported profit after tax plunged by 62% to $5.2bn between January and September 2020.

In December 2019, the market capitalization of the London-headquartered financial giant stood at $160.1bn, revealed Yahoo Finance data. During the next three months, this figure dropped to $114bn.

The noticeable decreasing trend continued in the following months, with the market capitalization falling to $78.9bn in September, a 50% plunge since the beginning of 2020. Statistics indicate the combined value of HSBC’s stocks stood at $113.8bn last week, a $46.4bn drop in a year.

Lloyds Banking Group Witnessed the Biggest Market Cap Plunge

The Yahoo Finance data revealed that Lloyds Banking Group, as the second-largest bank in the United Kingdom, witnessed the most significant drop in the market capitalization amid the COVID-19 crisis, with the figure falling from $57.4bn in December 2019 to $34.8bn last week, almost a 40% plunge in a year.

After putting aside £2.4bn for bad debts, Britain’s biggest high street lender reported a loss of £676 million in the second quarter of 2020. The negative trend continued in the third quarter of 2020, with the net profit plunging by 19% YoY to £3.4bn. The Group’s earnings report revealed that the net profit in the nine months of 2020 amounted to £10.8bn, 17% less than the same period in 2019.

Barclays lost almost $5.5bn in market capitalization amid the COVID-19 crisis. In December 2019, the combined value of stocks of the UK’s third-largest bank by assets stood at $40.8bn. Statistics show this figure dropped by 13%, landing at $35.3bn last week.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Nigerian Stock Exchange

Dangote Sugar Board of Directors Approves 2020 Audited Financial Statement

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Dangote Sugar Refinery Plc

Board of Directors Has Approved 2020 Audited Financial Statement for Dangote Sugar

The board of directors, Dangote Sugar Refinery Plc, has approved the Financial Statement for the period ended December 31, 2020.

The company disclosed in a statement filed with the Nigerian Stock Exchange on Thursday.

According to the statement signed by Mrs. Temitope Hassan FCIS, Company Secretary/Legal Adviser, Dangote Sugar, the board also recommended the declaration of dividends subject to the approval of shareholders at the Company’s Annual General Meeting to be held in due course.

It stated that “the Closed Period remains in force until 24 hours after the filing of the Financial Statements.

“No insider of the Company, including its Directors, Employees, Advisers and Consultants and their connected persons may deal directly or indirectly in the Shares of the Company during the Closed Period.

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Refinitiv Partners With Nairobi Stock Exchange to Enhance Transparency of Secondary Fixed Income Market in Kenya

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Refinitiv Partners With Nairobi Stock Exchange to Enhance Transparency of Secondary Fixed Income Market in Kenya

 KENYA – Refinitiv partnered with the Nairobi Stock Exchange (NSE) to enhance Fixed Income (FI) price discovery and raise market transparency in Kenya.

As part of the partnership, the NSE will roll out Refinitiv Fixed Income Callouts in Kenya, an automated workflow that facilitates negotiations and agreements of secondary Fixed Income (FI) bond trading among banks, brokerage firms, and real-time integration with the Central Securities Depository (CSD).

The primary FI market has been steadily growing in Sub-Saharan Africa (SSA) as governments explore better access to financing. According to the 2020 Refinitiv investment banking review, SSA debt issuance totalled US$19.0 billion in 2020. With the increased accessibility to technology, electronic trading has emerged as a significant channel to the growth of a secondary FI market across the continent.

The deployment of Refinitiv’s solution will enable the NSE to benefit from an automated Over the Counter (OTC) FI workflow that is integrated in real time with both, the Securities Exchange and the CSD in Kenya.

Geoffrey Odundo, Chief Executive Officer, Nairobi Securities Exchange, said: “We are excited to be working with Refinitiv and the fixed income community to drive innovations in our market and adopt global best practices. Refinitiv’s trading workflow combined with NSE’s post-trade system will help us improve trade life cycle, reduce operational risks and encourage price discovery and transparency in the market.”

Nadim Najjar, Managing Director, Middle East and Africa, Refinitiv, said, “We are proud to partner with the NSE and the local regulators to foster transparency, latency and liquidity. Refinitiv Fixed Income Callouts will allow market participants to benefit from real-time price discovery across bonds and bills. The deployment will also facilitate collaboration among Kenyan banks, brokerage firms, and the CSD.”

“The Kenyan financial markets have seen significant growth over the past few years. This partnership reinforces our commitment to enable the local regulators and financial community with advanced technologies and workflows to achieve efficiency and growth. The adoption of Refinitiv Fixed Income Callouts will create an effective market infrastructure, build greater long-term confidence amongst investors, and ensure strong governance processes,” he added.

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Nigerian Stock Exchange

Stock Market Gains as AIICO, Zenith Bank, Flour Mills, Others Close in the Green

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stock bull

Stock Market Gains as AIICO, Zenith Bank, Flour Mills, Others Close in the Green

Nigerian Stock Exchange (NSE) closed in the green as stocks of AIICO, Livestock, Flour Mills, Zenith Bank and others closed strong.

Investors traded 337.955 million shares valued at N3.845 billion in 5,232 transactions during the trading hours of Tuesday.

The market value of listed equities grew by N5 billion from N21.009 trillion on Monday to N21.014 trillion on Tuesday while the NSE All-Share Index gained 0.03 percent from 40,154.09 index points recorded on Monday to 40,164.86 index points.

FBNH led the most trade stocks with 64,588,247 shares valued at N471,801,052.30 as shown below.

Top Trades

Symbols Volume Value
FBNH 64,588,247 N471,801,052.30
ZENITHBANK 52,673,009 N1,341,206,505.80
TRANSCORP 41,987,880 N38,118,654.63
UCAP 20,968,270 N128,224,244.12
UBA 18,146,830 N153,239,636.30

Top Losers

Symbols Last Close Current Change %Change
SUNUASSUR N0.81 N0.73 -0.08 -9.88%
LASACO N1.52 N1.37 -0.15 -9.87%
AFRIPRUD N6.6 N5.95 -0.65 -9.85%
ABCTRANS N0.35 N0.32 -0.03 -8.57%
UPL N1.29 N1.18 -0.11 -8.53%

Top Gainers

Symbols Last Close Current Change %Change
AIICO N1.12 N1.2 0.08 7.14%
LIVESTOCK N2.1 N2.25 0.15 7.14%
FLOURMILL N29.2 N31 1.8 6.16%
ZENITHBANK N24.8 N26 1.2 4.84%
CUTIX N2.15 N2.25 0.1 4.65%

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