Nigeria's banking sector recorded a strong resurgence on the Nigerian Exchange (NGX) in the first half of 2026, with investors pouring funds into banking equities amid the successful implementation of the Central Bank of Nigeria's (CBN) recapitalisation programme, solid corporate earnings and sustained dividend expectations.
The renewed momentum pushed the combined market capitalisation of 12 listed deposit money banks to N22.51 trillion as of June 30, 2026, representing a N6.4 trillion increase from N16.12 trillion recorded at the close of 2025.
The impressive rally also cemented the banking sector's position as one of the biggest contributors to the Nigerian stock market, with the 12 lenders accounting for approximately 15.3 per cent of the Nigerian Exchange's total market capitalisation of N147.22 trillion at the end of the review period.
The performance reflects growing investor optimism following the CBN's banking recapitalisation exercise, which saw financial institutions raise fresh capital running into trillions of naira to meet the regulator's new minimum capital requirements. The stronger capital base, coupled with robust 2025 full-year earnings and resilient first-quarter 2026 financial results, strengthened confidence among both local and foreign institutional investors.
Guaranty Trust Holding Company (GTCO) maintained its position as Nigeria's most valuable listed banking stock, ending the first half of the year with a market capitalisation of N4.57 trillion, up from N3.3 trillion at the end of 2025.
Its share price appreciated by 37.8 per cent year-to-date, rising from N90.70 to N125 per share. The group's strong market performance was underpinned by healthy financial results, including a profit before tax of N302.9 billion in the first quarter of 2026.
The lender's earnings were supported by a 17.5 per cent increase in interest income and a 7.1 per cent rise in fee income during the period. Its loan portfolio also expanded by 1.3 per cent to N3.17 trillion, while customer deposits grew by 6.3 per cent to N13.69 trillion, highlighting continued business expansion despite prevailing economic challenges.
Zenith Bank remained close behind, with its market capitalisation rising sharply to N4.52 trillion from N2.54 trillion at the close of 2025.
The bank reported a profit before tax of N360.92 billion in the first quarter of 2026, representing a three per cent increase over the N350.82 billion posted in the corresponding period of the previous year.
Both GTCO and Zenith Bank further reinforced their status as investors' favourites after rewarding shareholders with total dividends of N10 and N12.76 per share respectively for the 2025 financial year, maintaining their reputation as some of the Nigerian Exchange's most reliable dividend-paying stocks.
Stanbic IBTC Holdings Plc and First Holdco Plc also remained among the sector's biggest players, with both institutions recording market capitalisations above the N2 trillion mark.
Stanbic IBTC's market value climbed from N1.59 trillion at the end of 2025 to N2.59 trillion by June 2026, while First Holdco's valuation rose from N2.01 trillion to N2.55 trillion over the same period.
Stanbic IBTC delivered one of the strongest earnings performances in the banking industry during the first quarter, posting a 40.3 per cent increase in profit after tax to N114.9 billion.
The growth was largely driven by a remarkable turnaround in trading income, which swung from a N7 billion loss recorded in the corresponding quarter of 2025 to a N55.2 billion gain. Total income increased by 31.1 per cent to N266.1 billion, while total assets expanded by 12.5 per cent to N9.7 trillion.
Other major lenders also crossed significant valuation milestones during the six-month period. Ecobank Transnational Incorporated (ETI) closed June with a market capitalisation of N1.73 trillion, followed by United Bank for Africa (UBA) at N1.69 trillion.
Access Holdings maintained a market value of N1.19 trillion, while Fidelity Bank and Wema Bank ended the period at N1.16 trillion and N1.04 trillion respectively, underscoring the broad-based strength across the banking sector.
Among the mid-tier institutions, FCMB Group finished the first half of the year with a market capitalisation of N682.63 billion. Sterling Financial Holdings Company closed at N403.91 billion, while Jaiz Bank recorded a market value of N370.63 billion.
Capital market analysts attributed the sustained rally to the successful execution of the CBN recapitalisation programme, stronger corporate fundamentals and improving profitability across the banking industry.
According to analysts, the combination of enhanced capital buffers, resilient earnings growth and attractive dividend payouts has continued to position banking stocks among the most sought-after equities on the Nigerian Exchange. They believe investor appetite is likely to remain strong through the second half of 2026 as lenders continue to benefit from stronger balance sheets and improved operating performance.