Two weeks after the close of the banking recapitalisation exercise, shareholders of major banks listed on the Nigerian Exchange Limited (NGX) are beginning to see tangible gains, reflecting renewed investor confidence in the sector’s strengthened fundamentals.
The recapitalisation drive, which ended on March 31, 2026, saw 17 of the 33 banks successfully meet the regulatory requirements and remain listed on the NGX. Collectively, the banks raised about N4.65 trillion through capital market instruments, largely via equity issuance.
The fresh capital injection has significantly improved capital adequacy ratios, enhanced balance sheet resilience, and positioned the institutions to withstand tighter regulatory thresholds and macroeconomic shocks.
Early market indicators suggest that shareholders have responded positively to the successful completion of the exercise, with increased patronage and accumulation of banking stocks.
Findings by New Telegraph show that seven tier-one banks recorded a combined market capitalisation gain of N1.851 trillion within two weeks of the exercise’s conclusion, underscoring strong post-recapitalisation sentiment. Leading the rally is Guaranty Trust Holding Company Plc, which recorded a market value gain of N780.35 billion over the period.
Zenith Bank Plc followed closely with a gain of N689.97 billion, while Stanbic IBTC Holdings Plc posted N221.04 billion in added value.
Other notable gainers include First Holdings Plc, Sterling Financial Holdings Company, Fidelity Bank Plc, and United Bank for Africa Plc, which recorded gains of N24.47 billion, N10.42 billion, N10.04 billion, and N8.84 billion, respectively.
Market analysts attribute the rally to improved investor perception of the banking sector’s stability and earnings potential following the recapitalisation.
The successful capital raise appears to have reassured shareholders about the long-term viability of the banks, prompting renewed buying interest and portfolio rebalancing in favour of fundamentally stronger institutions.
However, the gains were not uniform across the sector. Access Holdings Plc, FCMB Group Plc, Jaiz Bank Plc, LivingTrust Mortgage Bank Plc, NPF Microfinance Bank Plc, and Abbey Mortgage Bank Plc recorded a combined decline of N62.11 billion in share price over the same period, suggesting selective investor confidence and a preference for larger, more capitalised institutions.
