In 2023, the NGX Banking Index recorded a growth of 114.9%, making the index the second-best performing index on the NGX after the oil and gas index.
Throughout the year, banks emerged as some of the highest profit-generating corporations in Nigeria. This impressive growth was fuelled by a significant increase in interest income and gains realized from the devaluation of the Naira in Q2 2023.
This growth was also evident in their market performance. Consequently, Nairametrics has monitored the performance of some of the top-performing banking stocks on the NGX this year.
10. FCMB Group Plc – +92.2%
Closing the year at a share price of N7.40 and a market cap of N146.5 billion, FCMB experienced a substantial 92.2% appreciation in its share price in 2023.
The group’s financial performance for the year mirrored its market success, with a noteworthy net income of N49.15 billion for nine months ending September 2023, marking an impressive 114.45% year-on-year growth compared to the same period in 2022.
Like other banks, FCMB Group also achieved remarkable growth in interest income, reaching N120.47 billion in net interest income during 9M 2023, signifying a robust 29.5% year-on-year growth.
9. Ecobank Transnational International (ETI) – +97.2%
Ecobank, the Pan-African banking group, witnessed remarkable growth on the NGX, concluding the year with a notable gain of 97.2% and achieving a market capitalization of N383.5 billion.
For the nine months ending September 2023, the bank reported a substantial net income of N182.9 billion, marking a robust 56% year-on-year growth compared to the corresponding period in 2022.
Additionally, the group posted a noteworthy 60% year-on-year growth in net interest income during the same period in 2023, reaching N498.6 billion.
8. Stanbic IBTC – +108.2%
Stanbic IBTC closed 2023 with a share price of N69.65, reflecting an impressive annual gain of 108.2%. The group, boasting one of the largest stocks in the market, also wrapped up the year with a substantial market capitalization of N902.45 billion.
In the nine months ending September 2023, Stanbic IBTC reported a robust net income of N110.4 billion, showcasing a remarkable 111.7% year-on-year growth compared to the corresponding period in 2022.
Additionally, the group achieved a noteworthy return on equity of 24.9% for the same period in 2023, solidifying its position as one of the most profitable banks in the country.
7. Jaiz Bank – +110.9%
Jaiz Bank, Nigeria’s leading Islamic bank, emerged as one of the top-performing banking stocks on the NGX in 2023, witnessing an impressive annual gain of 110.9%.
The bank concluded the year with a share price of N1.94 and a market capitalization of N67 billion. Demonstrating solid fundamentals, Jaiz Bank reported a net income of N6.4 billion in the nine months ending September 2023, marking a substantial 96.2% year-on-year growth from the corresponding period in 2022.
Operating on Islamic principles, the bank, while not relying on interest income like conventional banks, still delivered commendable earnings through financing contracts and investment activities
6. FBN Holdings – +116.1%
FBN Holdings, the parent company of First Bank Limited, demonstrated an impressive annual gain of 116.1% on the NGX in 2023. Closing the year at a share price of N23.55, compared to its opening price of N10.90 in January 2023.
The group also achieved a market capitalization of N845.3 billion. Although it briefly breached the N1 trillion mark on December 6, 2023.
Aligning with its robust market performance, the group’s financials for nine months ending September 2023 reflected substantial strength, with a net income of N236.4 billion, indicating an impressive 159% year-on-year growth from the corresponding period in 2022.
5. Fidelity Bank – +149.4%
Closing 2023 with a share price of N10.85 and a market capitalization of N347.3 billion, depicting an annual gain of 149.4%, Fidelity Bank showcased a commendable financial performance.
Notably, it achieved a net income of N91.8 billion in the nine months ending September 2023, reflecting a substantial 162.46% year-on-year growth from the corresponding period in 2022.
Furthermore, the bank registered an impressive return on equity of 28.48% during the first nine months in 2023.
4. Access Holdings – +172.4%
Ending 2023 with a closing share price of N23.15 and a market capitalization of N822.9 billion, Access Holdings achieved an impressive yearly gain of 172.4%.
The group’s financial performance throughout the year was equally commendable, with a recorded net income of N250.4 billion in the nine months ending September 2023.
This signifies an 83% year-on-year growth from the corresponding period in 2022.
3. Unity Bank – +194.5%
Unity Bank witnessed a remarkable 194.5% appreciation in its share price on the NGX in 2023, closing the year at N1.62 after commencing at N0.59.
However, the bank faced challenges in its fundamentals, reporting a comprehensive loss of N47.2 billion in the nine months ending September 2023.
The stock’s noteworthy market performance was influenced by speculation of a potential takeover by Providus Bank, triggering a 100% appreciation from N0.92 to N1.84 between November 15 and November 24.
2. Sterling Holding – +206.4%
Sterling HoldCo, the parent group of Sterling Bank, experienced a remarkable 206.4% share price appreciation, closing 2023 at N4.29 compared to its opening value of N1.40.
The group also demonstrated a commendable financial performance, posting a net income of N16.5 billion in the nine months ending September 2023, reflecting a year-on-year growth of 23.04% from the corresponding period in 2022.
However, the group reported a modest return-on-equity of 10.3% in the first nine months of 2023, indicating room for improvement in this aspect.
1. United Bank for Africa – +237.5%
UBA outshone its peers on the NGX in 2023, witnessing a remarkable 237.5% share price appreciation, closing the year at N25.65 with a market cap of N877.2 billion.
The bank’s robust fundamentals were evident, with a profit after tax of N449.3 billion in the nine months to September 2023, marking an impressive year-on-year growth of 287.2% from the corresponding period in 2022.
Notably, UBA recorded a comprehensive income of N886.8 billion during the first nine months of 2023, propelled by a substantial foreign exchange revaluation gain of N276.1 billion.
