Focusing on the Banking sector of the Ghana Stock Exchange (Part I)

The financial sector on the Ghana Stock Exchange includes banking and non-banking stocks. There are seven (7) banks on the exchange, six of which operate in the country and one in Gambia, (Trust Bank ltd, TBL). The banks operating in Ghana include CAL Bank (CAL), Ecobank Ghana (EBG), Ghana Commercial Bank (GCB), HFC Bank (HFC), Standard Chartered Bank (SCB), and UT Bank (UTB).

Let us now look at the various facts & figures behind these banks and how they performed since January 2012 on the Stock market.
I would be concentrating on GCB & HFC in this post.

Ghana Commercial Bank (GCB);
GCB – Bloomberg Chart: Price movement from Dec 2011 to May 2012. 

With market capitalization of about GHS 506.15 million, GCB began the
year with share price of GHS 1.86 and currently priced at GHS1.92. This bank records a year high of GHS 1.95 and a year low of GHS 1.85. This stock still showed some volatility as it always does. The earnings per share, trailing twelve months (ttm) is 0.2117 with a Price / Earnings ratio (ttm) of 9.0220. The last dividend that was paid was reported as GHS 0.0644 (04/08/2011). The Price / Sales (ttm) and Price/Book in the most recent quarter are GHS 1.1589 and GHS 2.0212 respectively. [All amounts in Ghana cedis (GHS)]

HFC Bank (HFC)
HFC, which has stated capital of GHS 45million and planning to hold a right issue in order to meet the central bank’s capital requirement of GHS 60million did not trade very frequently from the beginning of the year. It opened the year with 0.45 pesewas(p) per share and currently priced at the same although it had some movements. Its year low is recorded as 0.43p and year high as 0.45p.
 HFC like most financial/Insurance stocks performed badly and this may be due to the election year effect on the market. Key statistics from Bloomberg and the market reveal Price / Book value from the most recent quarter to be 1.0739 while the earnings per share (EPS) was 0.0583. One essential ratio, P/E ratio (ttm) is recorded as  7.7188.
HFC- Bloomberg Chart: Price movement from Dec. 2011 to May 2012.

For HFC, the last dividend reported (16/04/2012) is GHS 0.0202 with dividend yield annualized at GHS 5.1163 and a five (5) year Net growth of 32.53%.

In a statement e-mailed by the Ghana Stock Exchange the bank said net income advanced 26 percent to 10.9 million cedis ($6.3 million) in the year, 2011.
NB: This is the first part on the Banking sector of the Ghana Stock Exchange; join me in my next post on Ecobank Ghana (EBG) and Standard Chartered Bank (SCB).

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