Zenith Bank Plc has emerged as Nigeria’s second biggest bank by market capitalisation, closely following Guarantee Trust Holding Company Plc, a development analysts say shows growing investors’ confidence in Africa’s most populous nation’s top-tier lenders.
According to data obtained from the Nigerian Exchange Limited on Wednesday, Zenith Bank’s market capitalisation rose to N3.12 trillion, surging by 6.1 percent in about two days from N2.94 trillion.
This is as the lender’s share price increased by 6.29 percent to N76 per share, highlighting rising investor sentiment in the company’s shares.
With this rise in value, Zenith Bank is now moving swiftly closer to energy heavyweight, Seplat with a market value of N3.21 trillion and industrial goods titan BUA Cement whose value stood at N3.45 trillion.
Nigerian banks are gradually gaining investors attention amid strong operational efficiency and robust top line growth with GTCO first entry into the N3 trillion market cap category. The Lagos-headquartered lender is valued at N3.68 trillion.
Zenith and GTCO have both demonstrated robust earnings strength, becoming the first banks in the country’s history to post annual net profits of over N1 trillion in 2024. Zenith Bank led the pack with N1.03 trillion, followed closely by GTCO’s N1.02 trillion.
Zenith Bank started 2025 with some level of profitability, generating N311.83 billion as profit after tax for the first quarter of this year, representing an increase from N258.34 billion realised in the same period under review of 2024.
Meanwhile, GTCO saw its net income decline by 43.5 percent relative to the same period of last year, taking a hit from a sharp slide in the unrealised gain on financial assets such as bonds and treasury bills.
Read also: Jim Ovia sells indirect shares in Zenith bank worth N67.2 Million
Banks’ profitability takes a hit in 2025
Nigerian banks are grappling with a slowdown in profitability in 2025 as the windfalls from naira devaluation and aggressive interest rate hikes begin to fade.
With foreign exchange (FX) gains normalising and credit expansion still weak, the sector’s once-robust earnings momentum is showing signs of fatigue.
According to data from the Nigerian Exchange Limited (NGX), the combined after-tax profit of nine major commercial banks, including Zenith Bank Plc, GTCO, First Holdco Plc, Access Holdings Plc, United Bank for Africa (UBA) Plc, Fidelity Bank Plc, Wema Bank Plc, Stanbic IBTC Holdings Plc, and FCMB Group Plc, rose slightly by 0.74 percent to N1.35 trillion in Q1 2025, marking a stark contrast to the 274.3 percent profit growth recorded in Q1 2024.
To help cushion the likely drag in profitability and operational efficiency this year, the federal government recently introduced a one-off windfall tax targeting bank earnings.
The proceeds are intended to support infrastructure, healthcare, education, and social welfare initiatives. In 2024, nine leading banks, including Zenith and GTCO, paid a combined N313 billion in taxes.
With this record-setting valuation, Zenith Bank has reinforced its dominance as a force to reckon with in the country’s financial space.
