Detailed Stock Analysis of Stanbic IBTC Holdings PLC

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.