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Bank stocks climbed across the board on Tuesday, with major lenders such as Fidelity Bank, First Bank (FBN Holdings), Guaranty Trust Holding Company (GTCO), Jaiz Bank, Stanbic IBTC Holdings, Sterling Bank, UBA, Wema Bank, and Zenith Bank all finishing higher, underscoring renewed investor appetite in the financial sector.
The banking segment, a bellwether for Nigeria’s equities market, has been on a strong footing as the Central Bank of Nigeria’s (CBN) recapitalisation directive, requiring banks to bolster their paid-up capital by a March 31, 2026 deadline, enters its final stretch.
According to data tracked by Daily Sun, banks collectively added approximately N4.80 trillion to their combined market capitalisation in 2025, a significant portion of the wider NGX equity market’s gains. GTCO alone saw its valuation jump sharply as investors priced in robust earnings and strengthened capital buffers.
On Tuesday, the sector’s broad rise reflected a continuation of this trend as the NGX banking index outperformed other counters of the market, recording 1.3 per cent.
Financial stocks have been outperforming other major indices, buoyed by expectations that stronger capital positions will translate into improved credit creation and profitability. More than a dozen banks have already met or exceeded their recapitalisation targets, including several with international licences now comfortably above the N500 billion threshold.
Market participants said the capital-raising efforts have not only met regulatory compliance but also served as a catalyst for renewed confidence in the sector’s fundamentals. “Investors are rewarding banks that have executed well-structured capital increases and communicated a clear path to sustainable growth.The rally today reflects both the regulatory imperative and improved earnings visibility”, Chief Executive Officer, Crane Securities, Mike Eze said.
Eze pointed out that the NGX Banking Index has outpaced the broader market, with financials contributing a disproportionate share of total market gains in recent months.
According to him, this resurgence follows a strong overall performance in 2025, when the Nigerian All-Share Index (ASI) delivered one of its best annual returns in nearly two decades amid robust domestic demand and renewed foreign participation.
He caution that while recapitalisation has been a key driver, macroeconomic headwinds, including currency volatility and inflationary pressures, remain potential risks for sustained market momentum.
For now, the banking sector’s rise continues to attract both domestic and international investors, positioning financial stocks as one of the most closely watched segments of Africa’s largest equity market.
