STANBIC Declares N59.76bn PAT in Q3 2018 Results,(SP:N46.00k)


Friday, October 26, 2018 01.59PM / NSE with additional comments from FBNQuest Research

Proshare Nigeria Pvt. Ltd.



FBNQuest – First Reaction 

Implications: Stanbic’s results were broadly in line with consensus. On an annualised basis, its 9m 2018 PBT implies that the bank is on track to deliver PBT of over N90bn. Its annualised ROAE of c.36.6% is slightly ahead of management’s 30-35% guidance and is amongst the best within our universe of banks coverage. However, given the limited surprises in the results, we expect to see a muted reaction from the market.

Positives: Q3 PBT of N19.7bn advanced by 19% y/y mainly driven by a -79% y/y reduction in provision for loan losses. Funding income growth of 9% y/y also contributed. In terms of balance sheet trends, Stanbic’s loan book expanded by 7% q/q. Having made net recoveries of N4.1bn ytd, the Stanbic’s cost-of-risk is well below management’s guidance of <1%. NPL ratio improved to 4.7% from around 8.6% in Q2 2018.

Negatives: Pre-provision profits declined by -3% y/y due to a -17% y/y reduction in funding income. The funding income also missed our forecast by around 16%.

Stanbic’s shares have gained 11% ytd, outperforming the NSE ASI by c.26%.

Rating: We rate Stanbic Neutral. Our estimates are under review.


Stanbic Bank Q3 2018 results: actual vs. FBNQuest Capital Research estimates (N millions)

Proshare Nigeria Pvt. Ltd.

Source: NSE; FBNQuest Capital Estimates 

Proshare Nigeria Pvt. Ltd.

Related News

1.       Stanbic IBTC Announces Board Meeting

2.      Stanbic IBTC Issues Update on Regulatory Fine by the Central Bank of Nigeria

3.      Surrender of Venture Capital Licence by Stanbic IBTC Ventures Limited

4.      Stanbic IBTC Holdings Plc Issues An Update on Scrip Dividend Option

5.      CBN Debits the Account of Stanbic IBTC Bank In Respect of N1.886bn Regulatory Fine

6.      One Week After CBN Fines –MTN Share Price Drops by 31.06%; DIAMONDBNK and STANBIC Also Drop

7.      Banks, MTN Engage CBN Over $8.1b Fine; Factually Incorrect Premises Highlighted

8.     SKYEBANK, WEMABANK and FIDELITYBK Dropped by Over 4% After Today’s Trading

9.      Stanbic IBTC Plc Appoints Mr. Adekunle Adedeji as Group Chief Financial Officer

10.  Stanbic IBTC Holdings Plc Announces Board Meeting Date and Closed Period

11.   Stanbic IBTC Holdings Plc Closed Period Commences on December 01, 2017

12.  Stanbic IBTC Holdings Plc 9M’17 Results - Strong Balance Sheet Growth to Support Future Earnings

13.  Stanbic IBTC Holdings Reports Q3 2017 Results – Shares Outperform the Index

14.  STANBIC Declares N37.67 bn PAT in Q3 2017 Results,(SP:N44.05k)

15.   Stanbic IBTC Holdings Q2 2017 Results Review - Likely Easing of Cost of Risk In H2 Bodes Well

16.  Stanbic IBTC Holdings Plc H1'17 - Earnings Beat Estimates Despite Higher Provisioning

17.   Stanbic IBTC Holdings Q2 2017 Results: Shares Outperformed the Index

Related News