Follow Us on Google
Banking stocks quoted on the floor of the Nigerian Exchange Limited (NGX) have posted mixed performances so far in 2025, even as the sector index recorded strong gains, underscoring widening differences in investor appetite across the industry.
The NGX Banking Index, which tracks the performance of listed lenders, returned 38.1 per cent year to date (ytd) as of December 16, buoyed by strong rallies in a handful of large and mid-sized banks.
However, individual stock movements varied sharply, reflecting differences in earnings momentum, capital strength and investor perception.
Stanbic IBTC Holdings Plc emerged as the sector’s top performer, with its shares rising 63.04 per cent during the period. The stock closed at N105, making it the only listed financial company trading above N100 on the NGX.
The rally lifted Stanbic IBTC’s market capitalisation to about N1.66 trillion, supported by strong profitability, consistent dividend payouts and investor preference for banks with lower risk exposure.
Wema Bank Plc followed closely, posting a 62.2 per cent gain after its share price climbed to N18.20 from N11.20 at the start of the year. The bank’s market value rose to approximately N738 billion, reflecting growing confidence in smaller banks benefiting from improved margins and digital-led growth.
Guaranty Trust Holding Company Plc (GTCO) ranked third, delivering a 44 per cent year-to-date return. Despite recent price volatility, the stock remained one of the most actively traded on the exchange, with a market capitalisation of around N3.2 trillion, the largest among Nigerian banks.
Mid-tier performers included Jaiz Bank Plc, whose shares rose 36.5 per cent to N4.45, and Zenith Bank Plc, which gained 25.4 per cent to close at N63.50. Zenith’s market capitalisation stood at about N2.6 trillion, reinforcing its position as a blue-chip stock and a core holding for institutional investors.
Other banks recorded more modest gains. Sterling Financial Holdings Company Plc, First HoldCo Plc and Ecobank Transnational Incorporated all posted year-to-date returns of around 20 per cent, as investors remained selective amid ongoing restructuring efforts and exposure to multiple operating environments.
By contrast, several banks lagged the broader sector rally. United Bank for Africa (UBA) Plc posted a marginal 3.1% gain, while Fidelity Bank Plc and FCMB Group Plc ended the year lower. Access Holdings Plc was the weakest performer, with its shares declining 23 per cent, despite the group’s scale and regional footprint.
The uneven performance highlights a shift in investor strategy toward banks with clearer earnings visibility, stronger capital buffers and lower foreign-exchange risk.
While the sector as a whole benefited from improved margins and higher interest income in 2025, market participants increasingly differentiated between banks based on balance-sheet strength and execution, Daily Sun learnt.
With the year drawing to a close, analysts say the divergence is likely to persist, with stock selection, rather than broad sector exposure, playing a bigger role in determining returns within Nigeria’s banking space.
