Full List: Meet 5 Nigerian Banks with Capitalised Stocks ahead of CBN Recapitalisation
- Nigerian Exchange Banking Index surges over 10%, reflecting strong investor confidence in financial stocks
- Central Bank of Nigeria's recapitalisation drives stability, creating a leaner, resilient banking sector for growth
- Banks leverage digital transformation to attract investors, enhancing performance amid evolving market dynamics
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Nigerian Exchange (NGX) Banking Index has started 2026 on a powerful note, rising more than 10 per cent year-to-date, a signal that interest in Nigerian financial stocks remains robust amid broader market optimism.
These gains reflect not just a rebound from previous regulatory headwinds, but also a rapid reshaping of the banking sector into a more resilient, digital, and strategically positioned group of institutions.
Source: Getty Images
CBN recapitalisation: A turning point
A major force driving this momentum is the Central Bank of Nigeria’s recent recapitalisation exercise.
By raising capital requirements, the CBN aimed to strengthen banks’ balance sheets and ensure long-term stability.
The outcome has been a leaner sector with stronger lenders better positioned to capture growth as the broader economy steadies.
Investors are increasingly rewarding this renewed stability with higher valuations on the NGX.
Top banks setting the pace
Several major banks have dominated the bullish banking narrative.
Zenith Bank continues to be a market favourite, posting solid gains and attracting investor attention with its consistent performance and expanded footprint in key markets.
The bank’s share price appreciation and strong earnings reports have kept it at the forefront of NGX banking stocks.
Guaranty Trust Holding Company (GTCO) has also made a mark by maintaining strong liquidity and corporate governance, encouraging both local and foreign participation in its stocks.
United Bank for Africa (UBA) benefits from its wide pan-African network, which diversifies risk across multiple markets and appeals to global investors focused on cross-border growth.
Other banks like Fidelity Bank and FCMB Group have shown resilience and growth, particularly as they complete capital raises and align with the new regulatory requirements.
This repositioning is helping them compete more effectively with larger peers on both the NGX and in key commercial markets.
Digital transformation and innovation
Beyond capital strength, banks are winning investor confidence through digital transformation.
The industry is increasingly dominated by strong digital banking platforms, mobile finance solutions, and fintech partnerships that reduce operating costs and attract a growing base of tech-savvy customers.
This digital edge not only supports revenue growth but also appeals to younger investors who see digital adoption as key to future performance.
What does it mean for investors?
For market watchers, the current banking rally illustrates two key themes: strength and adaptation.
As banks meet stricter capital rules and embrace digital delivery, they are better able to manage risk and deliver consistent returns.
This has helped draw both short-term traders and long-term investors back to the financial services sector.
Source: Getty Images
Equity market data shows that banking stocks continue to account for a major portion of NGX turnover.
This suggests that the sector is not only leading in price performance but also in liquidity, a sign of confidence that can sustain the rally into later months of 2026.
Looking ahead for Nigerian banks
With banks showing resilience and the broader Nigerian market poised for growth, analysts remain cautiously optimistic about continued gains.
The recapitalisation push, combined with an accelerating shift toward digital services, could make Nigeria’s banking sector one of the most compelling investment stories in Africa’s equities markets this year.
5 major Nigerian banks declare N502.0 billion profit
Legit.ng earlier reported that FCMB Group Plc, Sterling Financial Holdings, Jaiz Bank Plc, Wema Bank Plc, and First HoldCo Plc have released their full-year financial results for 2025.
The banks collectively reported a profit after tax of N500.50 billion and also rising customer deposits signalling trust from the public.
Data obtained from the Nigerian exchange and analysed by Legit.ng showed that among the banks surveyed only First HoldCo Plc reported a decline in profit from the previous year.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
