Nigerian banks' market cap hits N22.5tn on CBN reforms and strong earnings

The Nigerian banking sector has seen a significant surge in market capitalization, with 12 listed deposit money banks collectively reaching N22.51 trillion in the first half of 2026. This impressive growth is attributed to the successful implementation of the Central Bank of Nigeria's (CBN) recapitalization program, robust earnings reports, and sustained investor confidence.

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The combined market capitalisation of 12 listed deposit money banks rose to N22.51 trillion in the first half of 2026, buoyed by the successful implementation of the Central Bank of Nigeria’s (CBN) recapitalisation programme, robust earnings growth and sustained investor confidence in the banking sector.

Banking stocks now represent approximately 15.3% of the Nigerian Exchange Limited's (NGX) total market capitalization of N147.22 trillion as of June 30. Within six months, these stocks gained N6.4 trillion in market value, rising from N16.12 trillion at the end of 2025. This rally signals a renewed investor appetite for banking stocks, spurred by the CBN's recapitalization exercise, which compelled lenders to raise substantial capital to strengthen their balance sheets.

Guaranty Trust Holding Company Plc (GTCO) maintained its status as Nigeria's most valuable banking stock, ending the first half of the year with a market capitalization of N4.57 trillion, an increase from N3.3 trillion at the close of 2025. GTCO's share price appreciated by 37.8% year-to-date. The group reported a profit before tax of N302.9 billion in the first quarter of 2026, supported by growth in interest and fee income.

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The rally underscores renewed investor appetite for banking stocks, following the CBN’s recapitalisation exercise, which prompted lenders to raise fresh capital exceeding trillions of naira and strengthen their balance sheets ahead of the new minimum capital requirements.

Zenith Bank followed closely, with its market value climbing to N4.52 trillion from N2.54 trillion at the end of 2025. The bank posted a profit before tax of N360.92 billion for the first quarter. Both GTCO and Zenith Bank also rewarded shareholders with significant dividends for the 2025 financial year.

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GTCO retained its position as Nigeria’s most valuable banking stock, closing the first half of the year with a market capitalisation of N4.57 trillion, compared with N3.3 trillion at the end of 2025.

Stanbic IBTC Holdings Plc and First Holdco Plc were the only other banking groups with market capitalizations exceeding N2 trillion. Stanbic IBTC's valuation rose to N2.59 trillion from N1.59 trillion, while First Holdco advanced to N2.55 trillion from N2.01 trillion. Stanbic IBTC reported a strong quarterly performance, with a 40.3% increase in profit after tax.

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Zenith Bank followed closely with a market value of N4.52 trillion, up sharply from N2.54 trillion at the close of 2025.