Stanbic IBTC Holdings Plc sustained its strong earnings trajectory in Q3 2022. The rising interest rate environment spurred interest income growth (+35% YoY to N38.81bn), while a rebound in trading gains drove non-interest income growth (+35% YoY to N33.72bn) after an underwhelming performance in the corresponding quarter of 2021. Fee and commission income growth was also impressive, supported by higher asset management fees during the review period.

Overall, operating income grew by 32% YoY to N58.75bn (net interest income: +29% YoY to N27.32bn and net non-interest income: +35% YoY to N31.44bn). The Group’s cost-to-income declined to 51% in Q3 2022 (Q3 2021: 54%), despite the inflationary environment. As a result of the operating efficiency, profit before tax grew by 41% YoY to N28.97bn. Net profit also rose by 41% YoY to N24.52bn.


We leave our forecasts unchanged because the Q3 2022 numbers mirrored our estimates. In the near term, we expect a sustained upward trend in interest rates to be net positive for the Group. We also see non-interest growth driven by fee and commission income.

We reiterate a BUY recommendation for the stock at an estimated fair value of N33.09. The total return expectation is 31%, consisting of an 18% price return and a 13% dividend yield. Occasioned by a general market sell-off due to waning investors interest, the stock currently trades at a 52-week low. We posit that the stock’s current market price is attractive for entry.

Please follow the link “Stanbic IBTC Holdings Plc Q3 2022 – Strong Income Performance Lifts Bottomline Growth” to view the whole report.

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