Access Holdings Leads Nigerian Banking Stocks Amid Valuation Gaps

The Nigerian banking sector has seen a remarkable 79% year-to-date increase in the NGX Banking Index, yet top-tier banking stocks continue to be undervalued, presenting a buying opportunity for investors. Access Holdings is identified as the cheapest Tier-1 bank based on Price-to-Book valuation, trading at over a 60% discount to its net asset value despite being Nigeria's largest bank by total assets and reporting over 1 trillion in annualized earnings.

UBA has shown triple-digit earnings growth year-on-year but trades at a single-digit P/E, reflecting market concerns over macroeconomic foreign exchange risks. Zenith reported a net income exceeding N1 trillion in 2025, with a return on equity of 21.7%, yet its stock price targets suggest a potential capital upside of over 25%.

GTCO, while attracting a premium valuation, maintains a single-digit P/E and a dividend yield exceeding 9%. FBNH has experienced significant share-price upgrades due to strong corporate governance and an 81.5% year-on-year profit growth in H1, but its valuation multiples remain below historical averages.