Banking Stocks Surge To N11.07trn As Recapitalization Frenzy Lifts Sentiment

A powerful wave of investor optimism driven by the Central Bank of Nigeria’s (CBN) ongoing banking sector recapitalisation mandate has propelled the combined market capitalisation of Guaranty Trust Holding Company Plc (GTCO), Zenith Bank Plc, United Bank for Africa Plc (UBA), and seven other leading lenders to N11.07 trillion in the first five months of 2025.

According to data compiled from the Nigerian Exchange Group (NGX), the valuation surge accounts for 15.7 per cent of the NGX’s overall equities market capitalisation, which stood at N70.46 trillion as of May 31, 2025.

Market watchers describe the development as a resounding vote of confidence in Nigeria’s banking giants, amid macroeconomic headwinds and policy recalibrations.

GTCO, Zenith Bank, and UBA dominated the rally, collectively contributing N5.72 trillion— more than half—of the total banking sector capitalisation.

GTCO emerged as the most capitalised lender on the NGX, its valuation climbing to N2.29 trillion by May 30, and further to N2.39 trillion as of June 5, after its share price touched a 52- week high above N70 per unit.

Zenith Bank followed closely with a market cap of N2.08 trillion, while UBA stood at N1.42 trillion, bolstered by its strong share performance, which closed May at N34.70.

Other banks within the NGX Banking Index basket include First Bank Holding Plc, Access Holdings Plc, Fidelity Bank Plc, Stanbic IBTC Holdings Plc, FCMB Group Plc, Wema Bank Plc, and Ecobank Transnational Incorporated (ETI).

Together, they reflect the sector’s combined resilience and investor allure, despite divergent performances.

While the broader index appreciated by 7.29 per cent—rising from 1,084.52 to 1,163.59 basis points— Access Holdings and First Holdco recorded declines in market value, shedding a combined N226.4 billion.

First Holdco’s plunge followed a disappointing first-quarter result, with profit before tax dropping by 20.4 per cent to N186.5 billion, sparking a 10.87 per cent fall in its share price. Conversely, GTCO added N341.4 billion in value, buoyed by its proposed rights issue and full-year dividend expectations.