Reports have emerged that the current economy is beginning to have an adverse effect on the performance of Nigerian Banks in the Stock Exchange.
Punch report has it that the austere policies by the Central Bank of Nigeria, the devaluation of the Naira and other economic headwinds have changed the fortunes of Deposit Money Banks in the country significantly.
It was learnt that between January 1, 2014 and Friday, February 28, 2015, the total market capitalisation of the banking sub-sector had declined by 24.5 per cent or N720bn to N2.219tn.
According to reports, Unity Bank Plc., whose share price has remained unchanged at 50 kobo per share, as well as Ecobank Transnational Incorporated Plc and Union Bank of Nigeria Plc. that appreciated by 1.2 per cent and 2.18 per cent, respectively as of Friday are the only exception.
As of Monday last week, ETI and UBN were down by 1.2 per cent and 7.4 per cent, respectively.
As for the others, Access Bank Plc was down by 33.3 per cent; Diamond Bank Plc had shed 46.9 per cent; while Fidelity Bank Plc and Guaranty Trust Bank Plc declined by 52.4 per cent and 13.03 per cent, respectively.
Others are Sterling Bank Plc, with 4.8 per cent drop; United Bank for Africa Plc, with a share price depreciation of 61 per cent; and Zenith Bank Plc, which was down by 35.8 per cent.
Skye Bank Plc and Wema Bank Plc, which are not in the banking index, were down by 53.9 per cent and 20.5 per cent, respectively.
Financial institutions, which have banks as subsidiary, did not fare any better.
The shares of FBN Holdings Plc and FCMB Group Plc, the parent companies of First Bank Nigeria Limited and First City Monument Bank Limited, declined by 52.1 per cent and 40.4 per cent, respectively over the review period.
Stanbic IBTC Holdings Plc, the parent company of Stanbic IBTC Bank Limited, however, appreciated by 17 per cent.
Experts have attributed the poor performance of the banking sector to a series of negative and unfavourable developments in the economy as well as the failure of several of them to focus on retail banking, among others.