Nigeria’s banking stocks delivered a mixed equity performance in 2025, with the NGX Banking Index closing the year up 39.77%, lagging the broader market’s 51.19% gain recorded by the NGX All-Share Index (ASI).
This is according to NGX year-end market data on listed banking equities.
While the sector underperformed the overall market, investor interest remained selective, rewarding banks with resilient balance sheets, improving earnings visibility, and clearer strategic execution. Out of the 12 banking stocks listed on the Exchange, only five outperformed the broader market benchmark.
Wema Bank Plc emerged as the standout performer, returning over 100% in 2025, while several tier-one and mid-tier lenders posted strong double-digit gains, underscoring renewed appetite for fundamentally sound banks operating in a challenging macroeconomic environment.
The NGX Banking Index’s 39.77% gain in 2025 signals a recovery in banking equities, albeit at a slower pace than the overall market. Performance across the sector was uneven, reflecting differentiated investor perception of earnings sustainability, asset quality, capital buffers, and strategic clarity.
Notably, Fidelity Bank Plc and Access Holdings Plc were excluded from the top performers. Fidelity Bank posted a modest year-to-date gain of 8.57%, while Access Holdings closed the year with an 11.95% decline, reflecting investor caution around integration risks, capital demands, and earnings pressures.
Overall, banking stocks that delivered stronger returns were those perceived as better positioned to navigate FX volatility, rising funding costs, and regulatory headwinds.
UBA’s share price rose from N34.00 to N41.65, supported by confidence in its pan-African footprint, steady earnings, and expanding digital banking initiatives. July stood out with a sharp 96.33% rally, the strongest single-month performance among Nigerian banks in 2025.
Sterling climbed from N5.60 to N7.05, reflecting improving sentiment around its retail banking push and asset quality improvements. July and August were particularly strong, with gains of 22.81% and 11.43%, respectively.
FCMB advanced from N9.40 to N12.05, buoyed by its retail-led growth strategy and digital banking expansion. Gains were spread across the year, with January’s 17.55% increase leading monthly performances.
Zenith Bank closed 2025 at N61.80 from N45.50, reinforcing its reputation for earnings consistency, liquidity strength, and reliable dividend payouts. July delivered its strongest rally at 34.33%.
Ecobank’s share price rose from N28.00 to N41.90, supported by diversified pan-African revenues and operational efficiency improvements. Strong gains were recorded in July and December.
Jaiz Bank climbed from N3.00 to N4.55, reflecting growing acceptance of its non-interest banking model. Performance was driven by speculative momentum, particularly in the second half of the year.
GTCO closed 2025 at N90.70, benefiting from investor preference for well-capitalised tier-one banks with predictable cash flows. Strong rallies were recorded in June and July amid sector-wide optimism.
First HoldCo surged from N28.05 to N47.90, driven by renewed confidence in its restructuring efforts, capital position, and earnings outlook. December’s 54.27% rally dominated its annual performance.
Stanbic IBTC rose from N57.60 to N100.00, supported by diversified earnings across banking, asset management, and pensions, as well as strong dividend appeal. Mid-year rallies reflected renewed interest in fundamentally strong stocks.
Stanbic IBTC rose from N57.60 to N100.00, supported by diversified earnings across banking, asset management, and pensions, as well as strong dividend appeal. Mid-year rallies reflected renewed interest in fundamentally strong stocks.
Wema Bank led the sector, climbing from N9.10 to N20.40 by year-end. The rally reflected optimism around its digital banking strategy, expanding retail footprint, and improving profitability metrics, with July’s 47.16% surge marking the peak of investor enthusiasm.
The performance of Nigeria’s banking stocks in 2025 highlights a shift toward selective investing rather than broad-based sector exposure. Investors increasingly prioritised earnings resilience, balance sheet strength, and strategic clarity amid macroeconomic uncertainty.
The divergence between the Banking Index and the broader ASI also suggests that while confidence is returning to the sector, it remains cautious and highly discriminating.