Stanbic IBTC Plc Halts Uptrend, Slides by 7%
The share price of Stanbic IBTC Plc declined by 7% to close at N65 on Friday, stock market data showed. The financial services group market valuation then rested at N842 billion due to selloffs.
Stanbic IBTC Holdings Plc had crossed N1 trillion in market capitalisation before it retreated. With divergence in earnings estimates, analysts’ perception of the group appears to be very different.
Market data showed that Stanbic IBTC’s share price rose steeply in the second half of 2023, especially just after the suspension of Godwin Emefiele as Central Bank of Nigeria’s governor.
After that, investors flooded the market scouting for Stanbic IBTC, forcing share prices higher consecutive amidst the bullish run in the exchange. Thereafter, momentum slowed down.
In its equity review, CardinalStone advised investors to sell the company share but CSL Stockbrokers latest review showed buy. A number of equities analysts are adjusting estimates after the financial services group earnings release in Q3.
Details from the financial services holding unaudited nine months of 2023 results revealed earnings per share double down to N8.25.
The earnings per share grew on the back of healthy profitability growth recorded in the period, supported by improved appetite for loans and FX revaluation gains.
Its financial scorecard indicated that the group’s Pre-tax Profit grew by 87.8% year on year to N129.5 billion in 9 months of 2023. Profit after tax advanced by 98.0% year on year to N109.2 billion, bringing 9M-2023 annualised return on average equity to 33.2%.
The breakdown showed that its business and commercial banking reported a pre-tax profit of N13.1 billion in 9M 2023, up from N7.5 billion reported in the comparable period in 2022. Corporate and Investment Banking reported a pre-tax profit of N79.6 billion versus N39.1 billion posted 12 months earlier.
The consumer & high net worth business reported a pre-tax profit of N36.8 billion, a strong growth when compared with N22.4 billion in the equivalent period. Stanbic IBTC has a healthy balance sheet, backed by a strong capital position, a healthy business profile and diversified earnings sources.
In the third quarter, the Group’s total capital adequacy ratio printed at 17.9%, about 700 basis points above the minimum regulatory requirement of 11%. Its banking subsidiary’s capital adequacy ratio settled at 14.9% in September 2023. Naira Devaluation Deepens Economic Crisis in Nigeria
