Banking stocks on the Nigerian Exchange Limited (NGX) have delivered mixed results in 2025, even as the NGX Banking Index posted a remarkable 38.1% gain year-to-date (YTD) as of December 16. The performance underscores growing disparities in investor appetite across Nigeria’s financial sector, with some banks rallying strongly while others struggled to keep pace.
Stanbic IBTC Holdings Plc emerged as the standout performer, with its share price soaring 63.04% to close at N105, making it the only Nigerian bank trading above the N100 mark. The rally boosted the bank’s market capitalization to about N1.66 trillion, reflecting strong profitability, consistent dividend payouts, and investor preference for lower-risk institutions.
Close behind, Wema Bank Plc recorded a 62.2% gain, with its stock rising to N18.20 from N11.20 earlier in the year. The bank’s market value climbed to approximately N738 billion, driven by improved margins and the adoption of digital-led growth strategies, signaling growing confidence in smaller banks. Guaranty Trust Holding Company Plc (GTCO) ranked third, posting a 44% YTD return and remaining one of the most actively traded banks on the exchange with a market capitalization of around N3.2 trillion.
Meanwhile, mid-tier performers such as Jaiz Bank Plc and Zenith Bank Plc delivered moderate returns of 36.5% and 25.4%, respectively. Several other banks, including Sterling Financial, First HoldCo, and Ecobank, posted gains of roughly 20%, while some lagged behind. Notably, Access Holdings Plc saw a 23% decline, and UBA, Fidelity, and FCMB underperformed the broader sector, highlighting selective investor preferences.
Analysts note that the uneven performance reflects a shift in strategy among Nigerian investors, who increasingly prioritize banks with clear earnings visibility, strong capital buffers, and low exposure to foreign-exchange volatility. As the year closes, stock selection rather than broad sector exposure is expected to drive returns in Nigeria’s banking sector, signaling a more discerning investment approach moving into 2026.
source: The sun