by Niyi Jacobs
Last week, the NGX-Banking Index declined by 0.48% week-on-week (W-o-W) to close at 815.29. Sterling Bank and Stanbic IBTC Holdings, both Tier 2 banks, faced significant challenges as their share prices plummeted.
Sterling Bank’s Share Price Plummets
Sterling Bank’s stock price dropped by 37.58% year-to-date (YTD), raising concerns about its financial health and ability to meet the upcoming recapitalization requirements.
Stanbic IBTC Holdings’ Woes Persist
Stanbic IBTC Holdings experienced a significant decline of 23.91% in its YTD performance, highlighting the challenges facing the bank in maintaining its growth momentum.
Contrasting Fortunes
In contrast, Wema Bank and FCMB, both Tier 2 banks, have shown strong positive momentum in share price movements YTD. However, FCMB experienced a decline of -1.27% in its share price over the same period.
Capital Raise
Zenith Bank announced a N290bn fresh capital raise through a public offer and right issue on July 29, 2024, to meet the Central Bank of Nigeria’s (CBN) minimum recapitalisation requirement.
Challenges Ahead
Sterling Bank and Stanbic IBTC Holdings must address their declining share prices to remain competitive and meet the upcoming recapitalization requirements.
