Detailed Stock Analysis of Stanbic IBTC Holdings PLC
1. Market Metrics
• Shares Outstanding: 13 billion
• Market Capitalization: ₦751 billion
• Stock Symbol: STANBIC
• Exchange: Nigerian Stock Exchange (NGX)
• Current Market Position: 17th most valuable stock on NGX, representing 1.27% of the Nigerian equity market.
2. Liquidity and Trading Activity
• Three-Month Trading Volume: 77.2 million shares across 3,870 deals, valued at ₦4.41 billion.
• Daily Average Volume: 1.23 million shares.
• Volume Peaks: Highest trading volume was 14.4 million shares on October 14, 2024.
• Volume Lows: Lowest trading volume was 22,174 shares on August 23, 2024.
3. Financial Performance Highlights (Q3 2024)
• Net Interest Income: ₦425.7 billion (180% growth YoY).
• After-Tax Profit: ₦182.8 billion (67.3% growth YoY).
• Total Assets: ₦7.2 trillion (37% increase YoY).
• Fees and Commission Income: ₦134.3 billion (58.9% growth).
• Earnings Per Share (EPS): ₦1.39 (up from ₦0.825 in Q3 2023).
• Operating Expenses: ₦183.5 billion, reflecting rising costs in Nigeria’s economic climate.
4. Dividend Information
• 2024 Interim Dividend: ₦2.00 per share.
• Total Dividend Paid in 2023: ₦3.70 per share (₦1.50 interim + ₦2.20 final).
• Ex-Dividend Date: September 19, 2024.
5. SWOT Analysis
• Strengths:
• Strong financial performance, robust market presence, and diversified service offerings in banking, asset management, and pensions.
• Weaknesses:
• Rising operational costs and occasional regulatory penalties.
• Opportunities:
• Growth in Nigeria’s financial services market and expansion into emerging payment channels.
• Threats:
• Cybersecurity risks and Nigeria’s macroeconomic instability, including inflation.
6. Recent Developments
• FMDQ Gold Awards: Recognized for excellence in financial services, including liquidity provision and fixed-income market leadership.
• Rights Issue: NGX approved a ₦150 billion rights issue, signaling plans to strengthen its capital base.
• Profit Margins: Maintains a profit margin of 25.3%, reflecting cost efficiency and revenue strength.
7. Valuation and Metrics
• Price-to-Earnings Ratio (P/E): To be calculated based on the current market price and EPS of ₦1.39.
• Return on Equity (ROE): A strong performance metric at 26.1%, indicative of efficient use of shareholder funds.
8. Investment Outlook
• Consensus Recommendation: “Buy” due to robust financials and growth potential.
• Target Price Range:
• High: ₦78.00 (+32.54% potential).
• Low: ₦49.14 (-16.50% downside).
9. Key Considerations
• Liquidity: While moderately traded (58th most traded stock), it remains a stable choice for long-term investors.
• Growth Potential: Its diverse revenue streams and expanding market position make it an attractive investment in Nigeria’s financial sector.
1. Market Metrics
• Shares Outstanding: 13 billion
• Market Capitalization: ₦751 billion
• Stock Symbol: STANBIC
• Exchange: Nigerian Stock Exchange (NGX)
• Current Market Position: 17th most valuable stock on NGX, representing 1.27% of the Nigerian equity market.
2. Liquidity and Trading Activity
• Three-Month Trading Volume: 77.2 million shares across 3,870 deals, valued at ₦4.41 billion.
• Daily Average Volume: 1.23 million shares.
• Volume Peaks: Highest trading volume was 14.4 million shares on October 14, 2024.
• Volume Lows: Lowest trading volume was 22,174 shares on August 23, 2024.
3. Financial Performance Highlights (Q3 2024)
• Net Interest Income: ₦425.7 billion (180% growth YoY).
• After-Tax Profit: ₦182.8 billion (67.3% growth YoY).
• Total Assets: ₦7.2 trillion (37% increase YoY).
• Fees and Commission Income: ₦134.3 billion (58.9% growth).
• Earnings Per Share (EPS): ₦1.39 (up from ₦0.825 in Q3 2023).
• Operating Expenses: ₦183.5 billion, reflecting rising costs in Nigeria’s economic climate.
4. Dividend Information
• 2024 Interim Dividend: ₦2.00 per share.
• Total Dividend Paid in 2023: ₦3.70 per share (₦1.50 interim + ₦2.20 final).
• Ex-Dividend Date: September 19, 2024.
5. SWOT Analysis
• Strengths:
• Strong financial performance, robust market presence, and diversified service offerings in banking, asset management, and pensions.
• Weaknesses:
• Rising operational costs and occasional regulatory penalties.
• Opportunities:
• Growth in Nigeria’s financial services market and expansion into emerging payment channels.
• Threats:
• Cybersecurity risks and Nigeria’s macroeconomic instability, including inflation.
6. Recent Developments
• FMDQ Gold Awards: Recognized for excellence in financial services, including liquidity provision and fixed-income market leadership.
• Rights Issue: NGX approved a ₦150 billion rights issue, signaling plans to strengthen its capital base.
• Profit Margins: Maintains a profit margin of 25.3%, reflecting cost efficiency and revenue strength.
7. Valuation and Metrics
• Price-to-Earnings Ratio (P/E): To be calculated based on the current market price and EPS of ₦1.39.
• Return on Equity (ROE): A strong performance metric at 26.1%, indicative of efficient use of shareholder funds.
8. Investment Outlook
• Consensus Recommendation: “Buy” due to robust financials and growth potential.
• Target Price Range:
• High: ₦78.00 (+32.54% potential).
• Low: ₦49.14 (-16.50% downside).
9. Key Considerations
• Liquidity: While moderately traded (58th most traded stock), it remains a stable choice for long-term investors.
• Growth Potential: Its diverse revenue streams and expanding market position make it an attractive investment in Nigeria’s financial sector.
