By Boluwatife Oshadiya | June 22, 2026
Key Points
- Nigerian listed banks lost approximately ₦2.5 trillion in market value during five consecutive bearish trading sessions
- The NGX Banking Index plunged 10.49% as investors exited financial stocks amid broad market weakness
- GTCO, Zenith Bank and First Holdco accounted for the largest share of losses across the sector
Main Story
The combined market value of Nigeria’s 12 listed banks fell by about ₦2.5 trillion last week as sustained sell pressure across the Nigerian Exchange (NGX) triggered one of the sector’s sharpest weekly declines this year.
Market data reviewed by MarketForces Africa showed the banking sector’s total valuation dropped to approximately ₦21.15 trillion after investors aggressively sold banking stocks amid a wider market correction that wiped about ₦5.64 trillion from the overall equity market.
The NGX Banking Index declined by 10.49% over the five trading sessions, reflecting weakening investor sentiment toward financial stocks despite continued expectations of strong earnings from several lenders.
Tier-1 banks bore the brunt of the sell-off, losing approximately ₦2.22 trillion in combined market value. GTCO recorded one of the steepest declines, shedding about 15% during the week as its share price fell from ₦135.55 to ₦115.55, erasing roughly ₦746 billion from its market capitalisation.
Zenith Bank lost about ₦596 billion in value, while First Holdco suffered a decline of more than 20%, reducing its market capitalisation to ₦2.44 trillion. Access Holdings and United Bank for Africa (UBA) also recorded losses, though at a relatively slower pace compared with their peers.
Analysts attribute the downturn partly to profit-taking activities following months of strong rallies in banking stocks, alongside broader market repositioning by institutional investors.
“The recent decline reflects a combination of profit-taking and portfolio rebalancing after an extended rally in banking stocks. Investors remain focused on earnings quality and capital adequacy positions,” market analysts at Afrinvest Securities said in a recent market note.
What’s Being Said
“The pullback appears more like a correction than a deterioration in banking fundamentals. Several tier-one banks still maintain strong earnings prospects,” said analysts at Vetiva Capital Management.
“Investors are reassessing valuations after significant gains recorded earlier in the year, particularly among the larger banking names,” according to a market commentary from Cordros Securities.
What’s Next
- Investors will closely monitor second-quarter earnings releases from major lenders in the coming weeks
- Market participants are expected to assess banks’ progress toward meeting ongoing regulatory capital requirements
- Analysts will watch for a potential rebound if bargain hunters return to fundamentally strong banking stocks
The Bottom Line: The sharp decline in banking stocks reflects a significant shift in investor sentiment, but market analysts largely view the sell-off as a valuation correction rather than a sign of weakening fundamentals. The sector’s next direction will likely depend on upcoming earnings results and investor confidence in banks’ profitability outlook.
