Investors are watching the half-year results of United Bank for Africa (UBA) Plc and Access Holdings Plc, whose shares trail those of tier-one rivals as they evaluate earnings momentum, asset quality and the overall gains from the sector’s recapitalisation.
Market Pressure on Nigerian Equities
The recent financial performance of certain banks has been shrouded in uncertainty, coinciding with a resurgence of selling pressure on banking stocks, which led to a 1.81 percent decline in the Nigerian Exchange’s Banking Index on October 12, with the index falling to 2,567.52 points from 2,614.79 points on October 9.
A broader market downturn resulted in a loss of N407.30 billion in equities’ market capitalisation, which decreased from N161.26 trillion to N160.85 trillion, reflecting the significant impact of the decline on the overall market.
Losses Across the Sector
Among major lenders, Access Holdings experienced the largest loss, with a decline of 4.24 percent, closely followed by Zenith Bank’s 4.23 percent decrease, while other banks such as Fidelity Bank, First HoldCo, Sterling Financial Holdings, Jaiz Bank, Wema Bank, and UBA also saw declines of 2.62 percent, 2.54 percent, 1.30 percent, 1.27 percent, 1.12 percent, and 0.81 percent, respectively.
The sell-off highlights the volatility confronting banking stocks despite their strong year-to-date gains and reinforces the importance of company-specific earnings, valuation, and investor expectations in determining share-price performance.
Contrasting Performance in H1 2026
UBA’s share price rose just 2.14 percent from N42.10 on January 2 to N43 on October 12, according to data compiled by BusinessDay. Access Holdings gained 28.70 percent, rising from N21.95 to N28.25 over the same period.
Both stocks trailed First HoldCo, whose share price climbed 209.17 percent to N145, and Zenith Bank, which gained 103.97 percent to N128.50. Guaranty Trust Holding Company (GTCO) advanced 42.23 percent to N129.
The gap in performance comes as First HoldCo, Zenith Bank, and GTCO have published their H1 2026 results, providing investors with updated information on profitability, capital positions, and earnings quality. UBA and Access Holdings, meanwhile, have yet to release their half-year accounts, leaving investors waiting for a clearer picture of their latest financial performance.
Why Investors Are Waiting
UBA’s board approved its audited H1 accounts in August, but the publication is still pending Central Bank of Nigeria approval, while Access Holdings secured an extension from the Nigerian Exchange, disclosing on October 2 that it was awaiting regulatory clearance, highlighting the uncertainty surrounding their financial performance.
What the Results Show
First HoldCo, formerly FBN Holdings, recorded the strongest appreciation in the group. Its H1 2026 profit before tax surged 83.5 percent to N653.54 billion, while profit after tax rose 81.57 percent to N526.1 billion. Gross earnings increased 16.66 percent, and operating income grew 25.77 percent. Its cost-to-income ratio improved to 44.19 percent.
Zenith Bank reported H1 profit before tax of N637.60 billion, up 1.9 percent year-on-year. However, gross earnings fell 24.6 percent to N1.90 trillion, while profit after tax declined 19.1 percent to N430.76 billion. A sharp reduction in impairment charges helped offset weaker trading performance and higher tax expenses. The bank proposed an interim dividend of N1.50 per share, up from N1.25 a year earlier.
GTCO recorded H1 profit before tax of N603.03 billion, up 0.4 percent year-on-year. Interest income grew 7.5 percent and trading income increased 24.7 percent, but a N46.2 billion fair-value loss limited overall profit growth. Its capital adequacy ratio stood at 34.9 percent at group level, while the cost-to-income ratio was 31.5 percent. GTCO also declared an interim dividend of N1 per share.
Lower Tier Gains
Stanbic IBTC and Wema Bank both grew profit faster than most tier-one lenders. The market has paid them less than it paid FirstHoldCo and Zenith.
Stanbic IBTC’s pre-tax profit rose 40.13 percent to N341.57 billion. Trading income, fees, and lower impairments more than offset weaker net interest income. The board declared a N4.50 interim dividend.
Wema Bank’s pre-tax profit rose 53.65 percent to N154.56 billion. Customer loans grew 21.73 percent, and the cost-to-income ratio improved to an estimated 42.13 percent from 47.55 percent. Earnings per share fell, and the stock dropped 8.85 percent in the days after the results. It has since recovered to N31.00, 51.59 percent above its January price.
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