FirstHoldCo, Zenith lead banking stocks rally as investors bet on earnings, capital strength - Businessday NG
Nigeria’s banking stocks are extending their dominance on the Nigerian Exchange (NGX), with investors piling into the sector amid strong earnings expectations, successful capital-raising exercises, and. . .
Nigeria’s banking stocks are extending their dominance on the Nigerian Exchange (NGX), with investors piling into the sector amid strong earnings expectations, successful capital-raising exercises, and renewed confidence in the industry’s long-term growth prospects. The NGX Banking Index closed at 2,546. 57 points on August 3, representing a 68 percent year-to-date (YTD) gain. The sustained rally has made banking equities among the best-performing assets on the exchange in 2026, outperforming several other sectoral indices. Driving the surge are heavyweight lenders such as First HoldCo, Zenith Bank, GTCO, Stanbic IBTC, Jaiz Bank, and Ecobank, whose share prices have posted impressive year-to-date gains as investors reposition ahead of stronger dividend expectations and improved profitability. First HoldCo emerges market favouriteThe standout performer remains First HoldCo Plc, whose shares have surged 180 percent since the beginning of the year to close at N134. 00 per share, making it the eighth-best-performing stock on the NGX in 2026. Even more remarkable is the stock’s 121 percent appreciation within the past four weeks, the strongest performance on the exchange during that period. Investor appetite has been reinforced by exceptional trading activity. Over the past three months, First HoldCo has become the most actively traded stock on the NGX, with approximately 6. 3 billion shares exchanged in more than 100,800 deals, worth about N588 billion. Average daily trading volume reached 100 million shares, underscoring the massive institutional and retail interest surrounding the stock. The rally comes as the lender advances its ambitious capital programme, including a major share offering designed to strengthen its balance sheet and position the group for future expansion. Investors also view the bank as one of the biggest beneficiaries of Nigeria’s banking recapitalisation programme, which is reshaping competition across the industry. Zenith Bank maintains momentumThe lender’s shares have climbed 102 percent since January, closing at N124. 9, making it one of the strongest-performing tier-one banking stocks this year. The stock has gained 19 percent over the past month, reflecting sustained investor confidence in the bank’s earnings resilience and dividend-paying capacity. Zenith ranked as the fifth most traded stock on the exchange over the last three months, with nearly 1. 93 billion shares valued at N232 billion changing hands across more than 266,000 deals. The lender continues to attract institutional investors seeking exposure to banks with strong capital adequacy, consistent profitability, and attractive dividend yields. GTCO remains investors’ defensive playGTCO has maintained its reputation as one of Nigeria’s most resilient banking stocks. Its share price has appreciated 44. 4 percent year-to-date to N131. 00, supported by continued earnings growth and investor confidence in its diversified financial services model. The holding company has also remained highly liquid on the exchange, ranking as the ninth most traded stock with 1. 3 billion shares worth N176 billion traded within three months. Although GTCO’s year-to-date gain trails First HoldCo and Zenith Bank, analysts continue to regard the stock as one of the safest long-term banking investments because of its consistent return on equity, capital strength, and predictable dividend policy. Jaiz Bank doubles investors’ wealthJaiz Bank has quietly emerged as one of the biggest winners in the sector. Its shares have climbed 90. 1 percent since the beginning of the year to N8. 65, reflecting growing investor confidence in Nigeria’s non-interest banking segment. The stock ranks among the exchange’s most actively traded equities, with 946 million shares valued at N8. 45 billion exchanged over the past three months. Read also:Evaluating GTCO’s retreat from South Africa’s ‘mature’ banking frayThe performance highlights increasing investor recognition of the bank’s expansion strategy and growing market share within the Islamic finance ecosystem. Related NewsAfrica's largest bourse posts double-digit earnings growth as trading boom lifts revenueAradel’s profit tops N191bn despite higher tax burdenAFRICA FINANCE IN BRIEF: Zimbabwe leads stock market rally as banks deepen Africa betsEcobank remains volatile despite strong gainsAlthough its shares have rallied 91. 2 percent since the beginning of the year, recent profit-taking has weighed on the stock, which declined almost 10 percent in the latest trading session and has shed 16 percent over the past four weeks. The correction suggests investors are locking in gains after the stock’s strong rally earlier in the year. Stanbic, Access deliver solid returnsStanbic IBTC Holdings has equally delivered impressive shareholder value. Its share price has appreciated 59 percent this year to N159, benefiting from investors’ preference for diversified financial services groups with stable earnings profiles. Access Holdings has also maintained positive momentum. The banking giant has gained 25. 5 percent year-to-date while recording a 12 percent increase over the past four weeks, reflecting renewed investor confidence in its pan-African expansion strategy. With operations spanning more than a dozen African markets as well as the United Kingdom, Access continues to attract investors seeking regional growth exposure. Mid-tier banks attract renewed interestBeyond the tier-one lenders, investors are also increasing exposure to mid-sized banks. Wema Bank has gained 41. 4 percent year-to-date; Fidelity Bank has advanced 14. 7 percent, while Sterling HoldCo has appreciated 13. 5 percent. FCMB Group remains one of the few laggards, with its share price down 6. 64 percent since the beginning of the year despite a recent rebound that saw the stock gain 13 percent over the past month. Why investors are buying banksSeveral factors are sustaining bullish sentiment across banking stocks. The successful completion of Nigeria’s banking recapitalisation programme has strengthened investor confidence in the industry’s long-term resilience. Banks have also continued to report robust earnings growth, supported by higher interest rates, expanding non-interest income, and improved balance sheets. Dividend expectations remain another major attraction. Historically, Nigerian banking stocks have ranked among the exchange’s strongest dividend payers, making them attractive to both domestic pension funds and foreign portfolio investors seeking stable returns. Read also:Seplat Energy revives 24 idle wells, adds 26,000 bpd output boost in H1 2026FirstHoldCo, Nigeria’s most capitalisaed bank, recently announced that it has adopted a new dividend policy committing to distribute a minimum of 60 percent of its annual profit after tax (PAT) to shareholders, subject to regulatory approvals. Liquidity is equally supporting valuations. The significant trading volumes recorded across First HoldCo, Zenith Bank, GTCO, Sterling HoldCo, and Jaiz Bank indicate sustained institutional participation rather than speculative retail buying alone. Chinwe MichaelChinwe Michael is a financial inclusion advocate and economy journalist who uses compelling storytelling to drive awareness. With a background in Banking and Finance and experience across accounting, media, and education, she applies sharp analysis and attention to detail to every piece. She simplifies complex financial and economy concepts into engaging content for Africa and global audience. Chinwe also doubles as a speaker with global recognition for her expertise.