August sell-offs spark ‘September warning’, analysts eye tier-1 banks for market aid 

Analysts at CardinalStone count on investor sentiment to remain cautious in September 2025, following the sell-offs that started in August and have continued into the brand new month.

This outlook was shared of their newest month-to-month fairness analysis replace titled “Broad-based Positive factors in International Equities; NGX ASI Stalls.” 

In line with the analysts, profit-taking in shares that rallied as much as early August dragged the broader index decrease, a development that endured into early September.

• The Nigerian inventory market managed to shut August barely constructive at 0.31%, after a robust begin in early August gave approach to weak spot within the second half, with the index shedding greater than 3,500 factors within the fourth week.

Trying forward, the analysts famous that upcoming earnings releases and interim dividend declarations from tier-1 banks might present a much-needed cushion in September.

They added that if traders reply positively to those outcomes, it could assist carry sentiment and stabilize total market efficiency.

Banking sector pullback 

The NGX Banking Index, which has been a robust performer this 12 months, opened in 2025 at 1,084.5 and ended January with a 9.76% acquire.

It eased barely in February and March, leaving the sector with a Q1 efficiency of 6.96%.

Though the second quarter started with a minor dip in April, bullish momentum returned in Might and strengthened in June, pushing H1 efficiency to 18%.

• July has been the standout month up to now within the second half, with the sector gaining 25.8% to 1,610.5.

Nevertheless, this rally misplaced steam in mid-August, and the pullback has been prolonged into early September.

• FUGAZ shares have been key drivers of the Might good points, following their Q1 2025 outcomes, which doubtless boosted investor confidence.

• Nevertheless, the index has since pulled again in Q3 and is now testing a help degree, round 1,500.

To this point, solely First HoldCo has launched its Q2 outcomes, and the market is probably going watching the remaining FUGAZ banks for clues.

First HoldCo efficiency 

First HoldCo Plc launched its monetary outcomes for the second quarter ended June 30, 2025, reporting a pretax revenue of N169.6 billion.

Whereas that is down 4.58% from the identical interval final 12 months, it stays a strong efficiency, bringing the group’s half-year pretax revenue to N356.1 billion.

The outcomes have been supported by a robust rise in curiosity revenue, which jumped 61.92% to N812.1 billion in Q2 from N501.5 billion a 12 months earlier, pushing half-year curiosity revenue to N1.4 trillion.

• Most of this got here from loans and advances (N910.3 billion), adopted by funding securities (N445.7 billion) and loans to banks (N81.2 billion).

The group additionally noticed greater web payment and fee revenue, which rose to N74.5 billion from N58.4 billion in Q2 2024.

A notable enchancment got here from overseas alternate losses, which dropped sharply from N66.4 billion to only N6.9 billion.