Stanbic IBTC share price trades flat on moderate Q1 earnings

Stanbic IBTC Holdings Plc share price stayed flat after the lender released its first quarter 2020 earnings result.

The group submitted its first quarter 2020 unaudited result to the Nigerian Stock Exchange yesterday where it declared ₦20.601 billion for the quarter.

Stock performance

In the stock market, STANBIC stock traded flat amid rising cases of COVID-19 and weak economic fundamentals.

The stock market data provides that the stock 52-week high was ₦46, and had bottomed at ₦23.50.

The financial service company’s share price had increased by ₦1.00, from ₦27.50 to ₦28.50 in the last 7 trading sessions.

After trading session yesterday, the group market capitalisation settled at ₦299.392 billion on 10,504,967358 shares outstanding.

First quarter 2020 earnings

In its unaudited financial statement for the first quarter 2020, the Bank lifted gross earnings by 5% year on year from ₦58.693 billion to ₦61.418 billion.

While the group recorded a decline in interest income from its portfolio of interest yielding assets, non-interest income came stronger.

In the period, due to 11.83% year on year reduction in the group interest income, net interest income went down by 8.26%.

Interest income fell from ₦31.142 billion in the first quarter of 2019 to ₦27.459 billion a year after.

Analysts attribute declining interest income to lower interest rate environment but then interest expenses paid to providers of funds also dropped.

Relative to the first quarter of 2019, net interest income fell 8.26% to ₦18.517 billion from ₦20.185 billion.

The group activities outside lending generated ₦32.639 billion in the first quarter of 2020. This was about 21% above ₦27.004 billion generated in similar period in 2019.

Operating income before impairment charges on credit losses also gained weight relative to what the group achieved in the comparable quarter in 2019.

The group unaudited financial statement for the period showed that operating income came at ₦51.156 billion.

Again, this was 8.41% above ₦47.189 billion that was reported in the comparable period in 2019.

Due to increase in credit assets, the group which had wrote back impairment booked in the previous period charge ₦1.967 billion against the first quarter profit.

Stanbic IBTC however reduce operating expenses by 1.18% in the first quarter 2020 from ₦25.071 billion to ₦24.776 billion.

In the first quarter of 2020, Stanbic group pretax level hits ₦24.413 billion. This represents a 3.85% year on year surge when compare to ₦23.509 billion reported in the comparable period in 2019.

Then, at growth rate of 7.58%, the group profit after tax berthed at ₦20.601 billion in the period as against ₦19.150 billion a year ago.

Stanbic IBTC earning per share increased 5.52% year on year from ₦1.81 to ₦1.91.

The rate of growth dropped behind profit for the year as the group weighted average numbers of ordinary share increased.

Stanbic IBTC share price trades flat on moderate Q1 earnings