• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Breaking News

Bank stocks fall in early trading as investors digest 50% windfall tax  

David Olujinmi by David Olujinmi
July 18, 2024
in Breaking News, Equities, Markets, Stock Market
Nigerian Stock Market sees red from start to finish, suffers N156 billion loss at last trading day of the week
Share on FacebookShare on TwitterShare on Linkedin

Early trading data in the Nigerian Exchange has shown a pattern of decline across bank stocks, as investors react to the proposed 50% tax on FX gains.  

According to trading data as of 12.30 pm, there was a 3.16% decline in FBN Holding’s share price, a 0.33% decline in GTCO’s share price, a 3.25% decline in FCMB share price, as well as a 1.89% decline in UBA share price.  

Data from some of the brokers have revealed an increase in sell pressure on banking stocks, with a high turnover volume after just two and a half hours of trading.

RelatedStories

Zenith Bank

Zenith Bank shareholders blame CBN fines for lower dividend payouts in 2024 

May 5, 2025
Nigerian Banks

Nigerian banks are seeing their earnings decline, and it could get worse 

May 2, 2025

For example, over 32 million GTCO shares have been traded, with 19.7 million UBA shares already traded at the time.  

50% Windfall tax on FX gains  

In a proposed amendment to the 2023 Finance Act, the Federal Government is making efforts to apply a one-time windfall tax of 50% on the realized foreign exchange gains recorded by banks in the 2023 financial year.  

According to a letter sent by the president to the Senate, the 50% tax would be used to fund the N6.2 trillion additions to the 2024 appropriation budget.

It was noted that the tax would be used to fund “capital infrastructure development, education, and healthcare as well as welfare initiatives all of which are components of the Renewed Hope Agenda.” 

In the 2023 financial year, major Nigerian banks recorded FX gains amounting to about N3.37 trillion. However, there will need to be a distinction between the realized and unrealized gains.  

After the devaluation of the Naira in 2023, banks in Nigeria recorded significant earnings from the revaluation of their FX-denominated assets. However, for other private sector players, it was a significant dent to their books, as companies like MTN Nigeria suffered a N740 billion FX revaluation loss.  

It’s just a normal market reaction 

One day after the news of the proposed windfall tax broke, the reaction of the market has been bearish to banking stocks, with analysts noting it was just a normal market reaction.  

Adebayo Adebanjo, a senior analyst with Cardinalstone Securities noted, “I don’t think there should be any cause for alarm. It’s just a normal market reaction to corporate announcements that people don’t understand.” 

“Though the news is not positive for banks, it’s not something that would have such a big deal on their books as long as it’s within the band of the 2023 financial year.” 

The decline in banking stocks led to an early 0.2% decline in the NGX, with the ASI falling to an intra-day low of 99,830.80.  


Follow us for Breaking News and Market Intelligence.
Tags: bank stocksFBN holdingFX gainsGTCO's share pricewindfall tax
David Olujinmi

David Olujinmi

David Olujinmi is an ambitious and dynamic individual with a strong educational background in engineering. While engineering laid the foundation for his analytical skills, David's true passion lies in the world of finance, particularly in the intricacies of capital markets, investment banking, and asset management.

Related Posts

Zenith Bank
Exclusives

Zenith Bank shareholders blame CBN fines for lower dividend payouts in 2024 

May 5, 2025
Nigerian Banks
Blurb

Nigerian banks are seeing their earnings decline, and it could get worse 

May 2, 2025
CBN, forex
Companies

Legal and regulatory challenges: Can Nigeria’s Windfall Tax on banks hold up? 

October 11, 2024
Nigeria’s company income taxes fall to N753.88 billion in Q4 2022
Economy

70% Windfall Tax – Economists raise mixed concerns over Nigeria’s growth outlook 

October 1, 2024
company Income Tax (CIT)
Economy

Nigeria’s 70% windfall bank tax: Rewarding effort, taxing Luck 

September 17, 2024
Stanbic IBTC: Buy, sell or hold 
Financial Services

Stanbic IBTC says FX gains constitute only 10% of its profit 

September 11, 2024
Next Post
Nigeria receives Spanish delegation on possible energy cooperation

Appeal Court dismisses Sylva's case against Diri's election as Bayelsa governor  

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
Zenth Bank
first bank
Zenth Bank








DUNS

Recent News

  • Abbey Mortgage Bank to raise N100 billion for shift to regional commercial banking
  • Delta IGR rises from N83 billion to N158 billion between 2023 and 2024 – Gov. Oborevwori 
  • CardinalStone sets 2025 target price for Unilever, revises income forecast up by 18% 

Follow us on social media:

Recent News

Is Abbey Mortgage Bank shifting from mortgage lending to financial investments? 

Abbey Mortgage Bank to raise N100 billion for shift to regional commercial banking

May 29, 2025
Delta govt to evaluate rail project proposal for state-wide network 

Delta IGR rises from N83 billion to N158 billion between 2023 and 2024 – Gov. Oborevwori 

May 29, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics