Despite posting strong earnings in the first quarter of 2025, Nigeria’s top-tier banks suffered a sharp decline in market value last week, as investors engaged in widespread profit-taking that dragged the combined market capitalisation of the top five lenders below the N8 trillion mark.
The rout was led by Access Holdings Plc, whose share price tumbled 8.1 per cent to N21.60 from N23.50, erasing more than N101 billion from its market value. With 53.317 billion shares outstanding, AccessCorp’s valuation dropped to N1.151 trillion, the steepest weekly loss among its peers.
Trading data from the Nigerian Exchange (NGX) on Friday revealed that the aggregate market capitalisation of the five leading banks—GTCO, Zenith Bank, AccessCorp, UBA, and First Holdco Plc—fell to N7.952 trillion, down by N86 billion week-on-week. The sell-off came in contrast to their earnings performance, which showed resilience amid macroeconomic headwinds.
Four of the five banks reported strong Q1 2025 results, with First Holdco Plc being the exception, as its profits lagged due to sluggish business activity. GTCO Plc bucked the trend, gaining 2.94 per cent to close at N70 per share, buoyed by sustained interest from foreign portfolio investors.
The rally pushed GTCO’s market capitalisation up by N68.27 billion to N2.389 trillion, maintaining its status as the most valuable bank in the country.
In contrast, Zenith Bank Plc saw its share price slip to N47.40 from N48.40, shaving off over N41 billion from its valuation, which now stands at N1.946 trillion.
Despite posting a healthy first quarter result, investor caution weighed heavily on the stock. UBA Plc, which recently concluded a rights offer, lost approximately N18.5 billion in market value. Its stock closed at N34.45, slightly down from N34.90, amid tepid investor sentiment.
UBA remains the third most valuable bank on the NGX with a market cap of N1.414 trillion. Meanwhile, First Holdco Plc defied expectations with a marginal gain, supported by a 60 kobo dividend payout approved at its AGM.
Its share price inched up to N25.10, boosting its market value by N6.28 billion to N1.051 trillion.
Analysts attribute the downward trend to profit-taking following strong Q1 earnings, cautioning that volatility may persist as investors adjust positions ahead of the mid-year earnings season. While fundamentals remain strong for most Tier-1 lenders, price action suggests a market in search of fresh catalysts.
