By Boluwatife Oshadiya | June 22, 2026
Key Points
- Nigeria’s five largest banks lost approximately ₦2.22 trillion in combined market value last week
- GTCO, Zenith Bank and First Holdco recorded double-digit declines during the sell-off
- Investors continue to rebalance portfolios amid concerns over valuations following months of strong gains
Main Story
The combined market capitalisation of Nigeria’s leading banking groups declined by about 14% to ₦14.17 trillion last week as investors intensified selloffs across financial stocks on the Nigerian Exchange.
The losses came during a broader market downturn that erased ₦5.64 trillion from the value of listed companies, with banking stocks emerging among the hardest-hit sectors.
GTCO, Zenith Bank, First Holdco, United Bank for Africa (UBA) and Access Holdings collectively lost ₦2.22 trillion in value during the week. GTCO recorded the largest monetary decline, losing approximately ₦746 billion after its share price dropped 15% to ₦115.55.
First Holdco fell by more than 20%, wiping out about ₦622 billion in market value, while Zenith Bank lost roughly ₦596 billion as investors trimmed positions in the lender despite positive earnings expectations.
Access Holdings and UBA also recorded losses, though market analysts noted that both institutions experienced relatively milder declines compared with some of their peers.
The correction comes after a prolonged rally in banking stocks driven by strong earnings performance, higher interest rate margins and optimism surrounding banking sector recapitalisation efforts.
“The banking sector remains fundamentally attractive despite recent volatility. Current valuations may present opportunities for long-term investors,” analysts at CardinalStone Research noted in a recent market update.
What’s Being Said
“The market is experiencing a healthy correction following an extended period of strong gains across banking stocks,” said analysts at Meristem Securities.
“Investors continue to monitor capital adequacy positions and earnings resilience as recapitalisation efforts progress,” according to market observers tracking the sector.
What’s Next
- Investors are awaiting second-quarter financial results from major banks
- Banks will continue implementing recapitalisation strategies ahead of regulatory deadlines
- Equity analysts are expected to update valuation models following the recent correction
The Bottom Line: Despite the sharp decline in market value, analysts maintain that Nigeria’s largest banks remain among the strongest earnings generators on the NGX. The current correction may ultimately test whether recent valuations were supported by fundamentals or driven by excessive market optimism.
