Event

The Group sustained her impressive performance into Q3 2023 as gross earnings grew by 71% year-on-year to N121.04bn from N70.91bn. The growth was due to a 92% year-on-year increase in interest income to N74.33bn (Q3 2022: N38.81bn), as yield on the Group’s assets improved to 5.46% in 9M 2023 from 4.09% in 9M 2022. Meanwhile, non-interest revenue also supported gross earnings growth, with the Group reporting a 46% year-on-year increase to N46.71bn; this was driven by a 27% year-on-year improvement in fee and commission revenue, supported by an increase in asset management fees and electronic banking fees.

Outlook

We project a FY 2023 a profit after tax of N153.69bn, which translates to an earnings of per share (EPS) of N11.86. Our fair value for the stock is N55.41 which effectively implies a 4.67x justified P/E. At the current market price of N65.00, the stock trades at a premium to our fair value. Hence, we recommend a HOLD.

Please follow the link “Stanbic IBTC Plc Q3 2023 – Trading Revenue Supports Bottom-line” to view the whole report.

Thank you.