Five banking stocks that are underperforming the market

Diversification only works if you’re aware of the weak links in your portfolio. As we analyse the year-to-date (YtD) performance of banking stocks, several prominent names have significantly underperformed both their peers and the All-Share Index (ASI) at +25.30 percent YtD.

FCMB Group (-1.24% YtD)
As the Nigerian banking sector navigates a complex macroeconomic environment, the shares of FCMB Group Plc have experienced a slight pullback in early 2026, marking a 1.24 percent decline year-to-date (YtD). While the stock reached a 52-week high of N12.95 in early January, it has recently stabilised near the N11.90 mark.

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Investors are currently weighing the bank’s strong fundamental growth – highlighted by significant earnings surges in year 2025—against broader market volatility and institutional adjustments within the NGX.
FCMB Group Plc more than doubled its after–tax profit for the year ended December 31, 2025, as robust growth in interest income, improved fee earnings, and stronger operating cash flows boosted the firm’s bottom line. Despite the marginal year-to-date dip, analysts remain cautiously optimistic, noting that the bank continues to trade at a low price-to-earnings (P/E) ratio relative to its industry peers.

Fidelity Bank (+7.37%)
Though still underperforming the NGX-ASI (+25.30%), shares of Fidelity Bank Plc have maintained strong bullish momentum in early 2026, posting 7.37percent gain year-to-date. The stock recently climbed to a price of N20.40, reflecting investor confidence as the bank successfully re-entered the trillion-naira market cap club on the Nigerian Exchange Limited (NGX).
Fidelity Bank’s upward trajectory is fuelled by robust fundamentals, including a significant year-on-year surge in gross earnings and the bank’s continued expansion strategy. Despite broader market fluctuations, Fidelity remains a favourite for value investors. Fidelity Bank had reached a 52-week high of N22.45.

First Holdco (+12.73%)
Shares of First HoldCo Plc have demonstrated a powerful start to 2026, climbing 12.73 percent year-to-date (YtD) and reinforcing its position as one of the most resilient heavyweights on the Nigerian Exchange Limited (NGX). The stock’s return which underperforms the ASI recently closed at N54, driven by sustained investor appetite. First Holdco has reached a 52-week high of N55.3.
Investors are betting on First HoldCo cleaner balance sheet after it addressed a massive bad debt situation (write-off of N748 billion in bad loans) which – while impacting short-term earnings – has been viewed by the market as a vital house-cleaning exercise for future growth.
The stock’s double-digit growth also reflects strong market confidence in the Group’s ongoing recapitalisation efforts and its leadership in the banking sector. First HoldCo continues to attract high trading volumes, remaining a primary driver of the NGX Banking Index’s performance this quarter.

ETI (+13.60%)
Also, the shares of Ecobank Transnational Incorporated (ETI) Plc have rallied this year, delivering a strong 13.60 percent return year-to-date (YtD). The stock recently reached a price of N47.60 as against a 52-week high of N51.9.
Ecobank delivered an impressive performance in 2025, marked by double-digit growth across its key financial indicators. The Group’s Profit After Tax (PAT) saw a substantial increase, driven by solid revenue growth and effective cost management, reinforcing its position as a leading financial institution in Africa.

Sterling Financial Holdings Company Plc (+14.89%)
Shares of Sterling Financial Holdings Company Plc have risen this year by 14.89 percent. The stock recently closed at N8.10, reflecting positive investor sentiment following the Group’s successful capital raise and regulatory milestones. Sterling Financial Holdings Company Plc had reached a 52-week high of N8.97 as against a 52-week low of N4.34.
The stock’s recent rally is largely attributed to Sterling Financial Holdings Company completion of its recapitalisation exercise, having secured approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) for its oversubscribed public offer.