Also, analysts explained that “Nigerian banks have consistently traded at lower price-to-book ratios compared to their African counterparts, and have not yet fully recovered from the economic impact of the pandemic. However, despite the harsh operating environment, Nigerian banks have remained relatively stable since 2016, offering a potential opportunity for long-term capital growth and improved dividends for investors.
The NGX Banking index as at June 23, 2023 recorded Year-to-date growth of 43.44 per cent and one of the best sectoral indices, out performing the overall market NGX All Share Index with a growth of 15.52 per cent. “For example, the banking sub sector of the equities market had grown astronomically since the news of the suspension of the then Central Bank Governor, Godwon Emefiele hits the market and the unification of the exchange rate.
“Technically, a rising triangle had been formed on the lead index chart pattern M-o-M, this implies that the market is strong enough to achieve new highs. Also, a careful look at the banking index chart shows that, the formed a very similar pattern to that of the leading index.