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GTCO and Zenith Bank are in a fierce race for market supremacy and have made it to the N1 trillion valuation category for the first time in 2023. These banking giants have achieved this milestone due to the strong demand for banking stocks and improved business fundamentals. Although their market re-rating has slowed down, the equities market remains a top investment destination in the Nigerian financial markets.
The rivalry between GTCO and Zenith Bank has attracted significant attention, and the future looks promising for their shareholders. Both banks are known for their innovations in the banking sector, with similar risk profiles and capital positions above regulatory requirements.
In the stock market, the valuation of Zenith and GTCO has come closer in recent times, and some equities analysts believe that GTCO may emerge as the most valuable by market assessment.
For these two strategic lenders, overtaking each other is part of the game. GTCO and Zenith Bank have taken turns leading in market valuation. “Key man risk” is considered one of the driving factors behind this share re-rating, as investors seek value amidst the market’s highs and lows.
Historically, Zenith has been a profitability engine in the banking sector, with GTCO as a major challenger. However, something changed after the approval of the orange-branded financial service Holdco structure. GTCO’s earnings had been weaker compared to previous trends until a recent earnings surprise, supported by improved earnings from core and non-core revenue-generating activities.
At the end of the week, Zenith Bank was valued at N1.046 trillion, with a unit price of N33.30 and 31,396,493,786 shares outstanding. In this close race, GTCO’s valuation reached N1.04 trillion, with its share price closing at N35.35 per share on Friday, spread across 29,431,179,224 shares outstanding.
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