Stanbic IBTC stock rallies as full-year results impress investors

The stocks of Stanbic IBTC Holdings plc were on demand at the Nigerian bourse on Thursday following the holding company’s impressive financials for the full year ended December 31, 2018. Stanbic IBTC Holdings plc reported gross earnings increase by 4.67 percent to N222.360 billion in 2018, from a low of N212.434 billion in 2017 financial year.

Net Interest Income (NII) of N78.209 billion in 2018 as against N83.587 billion in 2017 represents a decline of 6.43 percent. Profit before tax (PBT) of N88.152 billion in 2018, from N61.166 billion in 2017, represents 44.12 percent increase. The company’s profit for the year 2018 at N74.440 billion, as against N48.381 billion in 2017, represents a growth of 53.86 percent. In 2018 financial year, its basic earnings per share (EPS) stood high at N7.04, from N4.60 in 2017, up by 53.04 percent.

Following the group’s gross earnings increase by 4.67 percent and profit before tax increase by 44.12 percent for the year ended December 31, 2018, the board recommended the approval of a final dividend of 150 kobo per share as against 100 kobo per share in 2017.

The final dividend proposed is valued at N15.36 billion compared to a final dividend of N5.025 billion paid in 2017. The company had paid interim dividend of N10.114 billion in 2018 as against N6 billion interim dividend it paid in 2017.

Stanbic IBTC Holdings plc share price rallied most at the sound of closing gong on the Nigerian Stock Exchange (NSE), moving from N46.6 to N48, up by N1.4 or 3 percent.

During the year under review, Stanbic IBTC Holdings plc issued an additional 191,087,214 ordinary shares of 50 kobo each for scrip dividend, thereby bringing the total issued and fully paid-up share capital of the company to 10.240 billion ordinary shares of 50 kobo each. Its market capitalisation stood at N491.546 billion as at Thursday on shares outstanding of 10.240 billion units.

The principal activity of Stanbic IBTC Holdings plc is to carry on business as a financial holding company, to invest and hold controlling shares in, as well as manage equity in its subsidiary companies.

The company has nine direct subsidiaries, namely, Stanbic IBTC Bank plc, Stanbic IBTC Pension Managers Limited, Stanbic IBTC Asset Management Limited, Stanbic IBTC Capital Limited, Stanbic IBTC Investments Limited, Stanbic IBTC Stockbrokers Limited, Stanbic IBTC Ventures Limited, Stanbic IBTC Insurance Brokers Limited, and Stanbic IBTC Trustees Limited. This is in addition to two indirect subsidiaries, Stanbic IBTC Bureau De Change Limited and Stanbic IBTC Nominees Limited.

 

Iheanyi Nwachukwu