Amid Recapitalisation, GTCO, 12 Others’ Market Value Hit N15.72trn

.Wema Bank has highest yield on investment

.NGX Banking Index closed higher at 40.95%

Kayode Tokede 

On the back of the ongoing recapitalisation exercise directed by the Central Bank of Nigeria (CBN), the market value of Guaranty Trust Holding Plc (GTCO), Zenith Bank Plc and 11 other listed banks on the Nigerian Exchange Limited (NGX) increased to N15.72 trillion at the end of August 2025. 

The NGX is currently a focal point for investors, particularly within the banking sector, as the CBN continues its assertive recapitalisation drive.
The CBN in March 2024 released its circular on review of minimum capital requirement for commercial, merchant and non-interest banks. The apex bank increased the new minimum capital for commercial banks with international affiliations, otherwise known as mega banks, to N500 billion; commercial banks with national authorisation, N200 billion and commercial banks with regional license, N50 billion.

Others included merchant banks, N50 billion; non-interest banks with national license, N20 billion and non-interest banks with regional license will now have N10 billion minimum capital. The 24-month timeline for compliance ends on March 31, 2026.

Under the new minimum capital base, CBN uses a distinctive definition of the new minimum capital base for each category of banks as the addition of share capital and share premium, as against the previous use of shareholders’ funds.

Amid demand by investors, the NGX Banking Index closed in eight months closed at 40.95 per cent YtD, higher than the overall NGX All-Share Index that closed at 36.31 per cent YtD.

Data collected by THISDAY from the NGX showed that GTCO, followed by Zenith Bank Plc and United Bank for Africa Plc (UBA) were the top three most capitalised banking stocks.

As at the end of August ended trading activities, the market value of GTCO closed at N3.35 trillion, while Zenith Bank and UBA stood at N2.71 trillion and N1.99 trillion, respectively.

In YtD growth, the stock price of GTCO appreciated by 61.4 per cent to close August 2025 at N92 per share, while the stock price of Zenith Bank gained 45.05 per cent to close at N66 per share. 

In addition, the stock price of UBA rose by 43.09 per cent to close at N48.65 per share as of August 2025.

THISDAY analysis showed that Wema Bank Plc, among the 13 listed banks has the highest yield on investment, gaining 152.7 per cent YtD to close August 2025 at N23 per share from N9.1per share it closed for trading in 2024. Wema Bank’s impressive half year ended June 30, 2025 and meeting the CBN’s capital requirement impacted on its stock price on NGX. 

However, the outstanding shares of GTCO, Zenith Bank and UBA stood at 36.43 billion, 41.04 billion, and 41.07 billion, respectively.

Of the three Tier-1 banks, GTCO and Zenith Bank have complied with the CBN’s N500 billion capital requirement for international financial institutions.
Currently, UBA is the only bank raising capital from existing shareholders.  The likes of Access Holdings Plc, Wema Bank Plc, Stanbic IBTC Bank, Jaiz Bank Plc, and Ecobank Nigeria (Banking subsidiary of Ecobank Transnational Incorporated) have also fully complied.

The lender had notified investing public that it commenced its right issue exercise to raise an estimated N157.8billion on the NGX.
The Pan-African financial institution announced a rights issue of 3,156,869,665 ordinary shares of 50 kobo each at N50.00 per share opens Wednesday, July 30, 2025 and is scheduled to close on Friday, September 05, 2025.

According to the financial institution, offer which has been duly approved by the Securities and Exchange Commission (SEC) is being made to existing shareholders on the basis of one (1) new ordinary share for every thirteen (13) ordinary shares held as at the close of business on Wednesday, 16 July 2025.
UBA had raised N250 billion through a rights issue that was significantly oversubscribed.

The rights issue, which offered 6.84 billion ordinary shares of 50 kobo each at N35 per share to existing shareholders, was oversubscribed by N11.6 billion, representing a 4.8per cent oversubscription rate.

For GTCO, it announced that it has increased its investment in its wholly owned Banking subsidiary, Guaranty Trust Bank Limited (GTBank) to N504 billion through a rights issue subscription for 6,994,050,290 ordinary shares of N0.50 kobo each made by GTBank for a total consideration of N365.85 billion. On this, the paid-up share capital of GTBank moved from N138.19 billion to N504.04billion.

This capital injection ensures GTBank’s compliance with the new minimum capital requirement for commercial banks with international authorisation stipulated by the CBN.

Launched in July 2024, GTCO’s equity capital programme began with a public offering to Nigerians that raised N209.41 billion from 130,617 valid applications for 4.7 billion ordinary shares, fully allotted and evenly split between retail and institutional investors.

The Group Chief Executive Officer of GTCO, Segun Agbaje in a statement said: “The successful recapitalisation of our flagship banking subsidiary, Guaranty Trust Bank Limited, marks a pivotal step in strengthening the foundation of our Group.

“With significant new capital secured and the CBN’s recapitalisation directive for Guaranty Trust Bank now fulfilled, we are focused on deepening innovation and service excellence, delivering improved performance, and expanding our footprint across high- growth markets, while upholding the industry-leading standards that define the GTCO brand.”

Zenith Bank had raised N350.4 billion through its public offering and rights issue to exceed the benchmark. The bank’s share capital increased to N614.65 billion with this additional raise, surpassing the legal minimum requirement by N114.65 billion.

 In the period under review, the market value of Stanbic IBTC Holdings closed at N1.59 trillion; Access Holdings, N1.4 trillion; First Holdco Plc, N1.36 trillion and Fidelity Bank Plc, N1.07 trillion.  Unity Bank Plc has the lowest market value of N17.65 billion as of August 2025.

Investment banking experts said with investors’ appetite for banking stocks, banks are on stronger footing to retain their licences.

Experts noted that banks have the advantages of enthusiastic existing shareholders and new investors, including foreign investors who have shown stronger appetite for Nigerian stocks in recent period.

Speaking, the Managing Director, Globalview Capital Limited, explained that the expectations in the capital market is that banks would largely be able to meet their capital requirements, citing the enthusiasm shown so far, as indicated by the 2024/2025 offers.

According to him, banks have a lot of positive things going for them, which place them in a better position to substantially outperform the 2004 recapitalisation scenario.

“In 2004, when the same exercise was foisted on the sector, we saw a lot of business combinations in the form of mergers and acquisitions. But after the general market meltdown, regulation has gone to a higher level. In 2025, the exact of what happened then is not expected. Quarterly and yearly earnings from the banking sector have been reflecting the true position of operations, which was opposite 21 years ago.

“To a very large extent, the market is not expecting any merger and acquisition as it believes that each bank would rise to the occasion and do the needful. Recapitalisation must not necessarily be from rights issues and public offers only. It could be from private placement and other strategic investments,” Kebira, a senior investment banker, said.

He noted that banks’ resilient earnings and ability to optimize shareholders’ value would support the sector’s recapitalisation exercise.

According to him, investors are looking beyond the current share pricing and macroeconomic situation into the post-recapitalisation period, when banks would be bigger and in a better position to deliver higher returns.

“The market is also looking towards a better outing for the banks after the recapitalisation exercise. It believes that more investable funds would be at their disposal and for what the sector is known, such funds would be judiciously deployed. At that point, they will generate commensurate earnings to counter the increase in the share capital base and the dilution in the earnings per share (EPS).

“The market has also noted that the banking sector has been paying less than 50 per cent of their EPS as dividends and as such, while the exercise is concluded and the effect of the funds has not fully reflected in their operations, they would still be able to pay a commendable dividend,” Kebira said.