“Wema Bank Leads 2025 Nigerian Banking Stocks Rally with 119% YTD Gain as Stanbic, GTCO, Zenith Follow”
Written by SpringnewsNG Media Limited July 31,2025
The Nigerian Stock Exchange witnessed an impressive rally in the banking sector on July 31, 2025, as four leading banks—Wema Bank Plc, Stanbic IBTC Holdings Plc, Guaranty Trust Holding Company Plc (GTCO), and Zenith Bank Plc—continued their upward surge, delivering exceptional year‑to‑date (YTD) returns and outperforming the broader market.
According to market data, Wema Bank has emerged as the sector’s star performer, posting a 119.23% YTD gain, fueled by strong investor interest and robust earnings growth. This remarkable performance has made Wema one of the best-performing stocks on the Nigerian Exchange (NGX) in 2025.
Following closely, Stanbic IBTC Holdings recorded a 73.18% YTD gain, while GTCO and Zenith Bank posted 65.09% and over 50% returns, respectively. These returns have significantly boosted the NGX Banking Index, reaffirming the dominance of tier‑1 banks in driving market momentum.
Key Drivers of the Rally
- Strong Earnings Performance – Robust first‑half results and dividend expectations have continued to attract institutional and retail investors to bank stocks.
- CBN Recapitalisation Policy – Regulatory clarity on the new ₦500 billion minimum capital requirement for tier‑1 banks has increased investor confidence, particularly in banks that have already met the threshold.
- Broader Market Optimism – The NGX All‑Share Index (ASI) has maintained a bullish run in July 2025, supported by improved foreign exchange stability and positive macroeconomic indicators.
Top Banking Stocks YTD Performance (as of July 31, 2025)
| Bank | YTD Return (%) |
|---|---|
| Wema Bank Plc | 119.23% |
| Stanbic IBTC Holdings Plc | 73.18% |
| GTCO Plc | 65.09% |
| Zenith Bank Plc | >50% |
Analyst Outlook
Market analysts expect the bullish momentum in banking stocks to continue into the third quarter of 2025, driven by positive half‑year earnings, dividend payouts, and sustained interest from local and foreign investors. Wema Bank’s digital banking growth, combined with the resilience of tier‑1 institutions, is likely to keep the sector attractive for portfolio managers.
