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Home WORLD BUSINESS & ECONOMY

Three of UK’s biggest banks lose $75bn market cap in a year

by Admin
January 21, 2026
in WORLD BUSINESS & ECONOMY

By Zainab Iwayemi

 

HSBC Holdings, Lloyds Banking Group and Barclays, the three largest banks in the United Kingdom, have seen an almost $75 billion drop in their market capitalisation year-on-year as the combined market value hit $184 billion recently, data compiled by BuyShares has shown.

Three of UK’s biggest banks lose $75bn market cap in a year
The plunge, which was mainly felt by the European banking system and saw many of the largest banks coping much worse with the crisis than their US peers, was attributed to the Coronavirus pandemic as major European banks all reported huge losses in 2020, causing their market cap to fall deep below 2019 levels.

The US financial giants, however, managed to boost their investment banking and trading revenues and better position themselves in times of economic uncertainty.

 

BuyShares data shows that HSBC, Europe’s largest bank by assets, suffered significant losses amid the COVID-19 crisis as the group earnings report revealed that revenues for the nine months of 2020 amounted to $38.7 billion, which represents a 9 per cent drop in a year, as a result of the progressive impact of interest rate reductions across its global businesses. Similarly, its profit after tax, dropped by 62 percent to $5.2 billion between January and September 2020.

In December 2019, Yahoo Finance data had reported the market capitalization of the London-headquartered financial giant stood at $160.1 billion, this figure dropped to $114 billion within the next three months. The drastic drop persisted into the following months, with the market capitalization falling to $78.9 billion in September, indicating a 50 per cent plunge since the beginning of 2020. Statistics indicate that the value of HSBC’s stocks combined stood at $113.8 billion as of January 2021, a $46.4 billion drop in a year.

In a similar account, Yahoo Finance data revealed that the second-largest bank in the United Kingdom, Lloyds Banking Group, witnessed the most significant drop in market capitalization due to the COVID-19 crisis. This led to a fall in the figure from $57.4 billion in December 2019 to $34.8 billion in January 2021, almost a 40 per cent plunge in a year.

In addition, the lingering effect of the COVID-19 caused Barclays to lose almost $5.5 billion in market capitalization.

The combined value of stocks of the UK’s third-largest bank by assets stood at $40.8 billion in December 2019. The figure dropped by 13 per cent, landing at $35.3 billion in January 2021.

 

 

Admin
Admin
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Onafriq, a pan-African payments company, is set to discontinue its Baxi agent banking business in Nigeria after five years, citing naira depreciation, rising operating costs and intensifying competition that have weakened the segment’s profitability. The planned shutdown will affect the agent banking operations conducted through Baxi under Onafriq Nigeria Payments Limited. However, the decision does not signal the company’s withdrawal from Nigeria, as it intends to retain its cross-border payments network and card issuing services in the country. In a statement, Onafriq said changes in Nigeria’s operating environment since 2024 had significantly altered the economics of its offline agent banking business, making the existing model unsustainable. The move marks a strategic shift for the company, which entered Nigeria’s agent banking market to expand access to financial services through a network of agents providing transaction services outside traditional bank branches. Onafriq attributed the decision to a combination of macroeconomic pressures and structural changes in the country’s payments industry. According to the company, naira depreciation and inflation have affected transaction volumes, increased operating expenses and undermined the sustainability of its agent banking operations. The growing adoption of instant account-to-account transfers has also changed the mix of transactions handled by agents, while heightened competition among payment service providers has put further pressure on margins. These developments have made it increasingly difficult for the business to remain viable under its existing operating structure, prompting the company to reassess its long-term strategy. Dare Okoudjou, founder and chief executive officer of Onafriq, said the decision to close the business was difficult, particularly given the efforts of employees, agents and business partners who helped build the Baxi network. “We entered Nigeria with conviction and commitment, but did not achieve the outcome we set out for. Closing this business was a difficult decision to arrive at, one that affects colleagues, agents, and business partners across Nigeria who poured their hearts and soul into building out the Baxi network,” Okoudjou said. Despite the closure, he reaffirmed the company’s commitment to the Nigerian market, noting that the group would continue to serve customers through its payments network and card issuing operations. Onafriq entered Nigeria’s agent banking market in 2021 through the acquisition of Baxi, also known as Capricorn Digital Limited. The company said it continued investing in the business through 2023, with efforts focused on expanding and strengthening its agent network. However, a subsequent review of the business’s long-term prospects and financial sustainability led to the decision to wind down the operation. As part of the transition, Onafriq said agents onboarded through the Baxi platform had been moved to another principal bank, a step intended to facilitate continuity for the affected agents. The company has also directed agents to transfer their funds to their preferred principal bank within 30 days, adding that its teams would provide support throughout the transition process. Employees whose roles are linked to the agent banking business will also be consulted and supported during the wind-down, with Onafriq pledging to treat affected workers fairly.

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Methane rules spread across 67% of global production as Nigeria faces compliance test 

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October 17, 2026
Onafriq, a pan-African payments company, is set to discontinue its Baxi agent banking business in Nigeria after five years, citing naira depreciation, rising operating costs and intensifying competition that have weakened the segment’s profitability. The planned shutdown will affect the agent banking operations conducted through Baxi under Onafriq Nigeria Payments Limited. However, the decision does not signal the company’s withdrawal from Nigeria, as it intends to retain its cross-border payments network and card issuing services in the country. In a statement, Onafriq said changes in Nigeria’s operating environment since 2024 had significantly altered the economics of its offline agent banking business, making the existing model unsustainable. The move marks a strategic shift for the company, which entered Nigeria’s agent banking market to expand access to financial services through a network of agents providing transaction services outside traditional bank branches. Onafriq attributed the decision to a combination of macroeconomic pressures and structural changes in the country’s payments industry. According to the company, naira depreciation and inflation have affected transaction volumes, increased operating expenses and undermined the sustainability of its agent banking operations. The growing adoption of instant account-to-account transfers has also changed the mix of transactions handled by agents, while heightened competition among payment service providers has put further pressure on margins. These developments have made it increasingly difficult for the business to remain viable under its existing operating structure, prompting the company to reassess its long-term strategy. Dare Okoudjou, founder and chief executive officer of Onafriq, said the decision to close the business was difficult, particularly given the efforts of employees, agents and business partners who helped build the Baxi network. “We entered Nigeria with conviction and commitment, but did not achieve the outcome we set out for. Closing this business was a difficult decision to arrive at, one that affects colleagues, agents, and business partners across Nigeria who poured their hearts and soul into building out the Baxi network,” Okoudjou said. Despite the closure, he reaffirmed the company’s commitment to the Nigerian market, noting that the group would continue to serve customers through its payments network and card issuing operations. Onafriq entered Nigeria’s agent banking market in 2021 through the acquisition of Baxi, also known as Capricorn Digital Limited. The company said it continued investing in the business through 2023, with efforts focused on expanding and strengthening its agent network. However, a subsequent review of the business’s long-term prospects and financial sustainability led to the decision to wind down the operation. As part of the transition, Onafriq said agents onboarded through the Baxi platform had been moved to another principal bank, a step intended to facilitate continuity for the affected agents. The company has also directed agents to transfer their funds to their preferred principal bank within 30 days, adding that its teams would provide support throughout the transition process. Employees whose roles are linked to the agent banking business will also be consulted and supported during the wind-down, with Onafriq pledging to treat affected workers fairly.

Onafriq winds down Baxi as Nigeria’s agent banking economics worsen

October 17, 2026

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