The combined market capitalisation of Nigeria’s five largest banks climbed to ₦12 trillion at the close of trading on Friday, reflecting a sharp re-rating driven by recapitalisation exercises and renewed investor appetite, data from the Nigerian Exchange (NGX) showed.
Tier-1 lenders including Guaranty Trust Holding Company (GTCO), Zenith Bank Plc, and others have experienced significant valuation expansion following capital raises that increased their outstanding shares on the local bourse.
Market data tracked by MarketForces Africa indicated that post-recapitalisation trading activity has pushed the banks’ valuations up by more than 100%, marking a dramatic turnaround from mid-2025 levels.
At that time, the combined market value of the top five banks stood below ₦6 trillion, weighed down by depressed valuations in Access Holdings Plc and First Holdco Plc in particular.
NGX data showed that GTCO remains the most valuable financial services group on the exchange. Despite some price volatility last week, the bank’s market capitalisation stood at ₦3.604 trillion, exceeding the combined valuation of First Holdco and Access Holdings Plc.
Zenith Bank Plc retained its position as GTCO’s closest challenger. Analysts continue to flag the possibility of further upside, citing strong earnings momentum and an attractive dividend outlook.
Zenith’s third-quarter earnings performance ranked among the strongest in the sector, with the lender demonstrating resilience amid regulatory headwinds and margin pressure. As a result, the market value of its 41.069 billion outstanding shares rose by 4.3% week-on-week to ₦2.868 trillion.
First Holdco Plc overtook United Bank for Africa (UBA) Plc to become the third most valuable financial institution on the NGX by Friday’s close. The stock has rallied strongly in recent weeks, following increased insider positioning ahead of its full-year 2025 earnings release.
While MarketForces Africa reported that First Holdco’s nine-month 2025 earnings were underwhelming due to cost pressures and the withdrawal of regulatory forbearance, renewed investor confidence has emerged following significant share acquisitions by billionaire investor Femi Otedola.
This development has acted as a major re-rating catalyst, triggering follow-on buying across the market. First Holdco’s share price rose by 12.8%, lifting the value of its 44.453 billion outstanding shares to ₦2.311 trillion.
Historically, First Holdco had once led the Tier-1 banks by market capitalisation before losing ground, prompting renewed scrutiny of its recovery prospects amid the current rally.
UBA Plc, valued at approximately ₦2 trillion, now ranks fourth among the top lenders. The bank recorded a modest 2.7% price gain last week following the announcement of a new share listing.
UBA remains the only Tier-1 bank to post a year-on-year profit increase after the first nine months of the 2025 financial year, supported by diversified income streams across its pan-African operations.
The lender’s consistent dividend track record continues to attract income-focused investors, with analysts maintaining a broadly bullish outlook on the stock.
Access Holdings Plc, Nigeria’s largest financial services group by assets, currently commands the lowest valuation among the Tier-1 banks. Despite heavy trading volumes, its share price has lagged peers.
NGX trading data showed that a marginal weekly gain lifted Access Holdings’ market capitalisation to ₦1.212 trillion by Friday’s close.
Some analysts told MarketForces Africa that Access Holdings is significantly undervalued, arguing that the group is being priced as a single-bank entity rather than a diversified financial conglomerate with extensive African operations and multiple earnings streams.
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