Stanbic IBTC Holdings has jumped 17% on the Nigerian stock market so far in July, pushing its year-to-date return above 71%, likely supported by positive fundamentals around the company.
The stock, which opened the year at N58, is now priced just below N100, with over 155 million shares exchanged so far.
The recent uptick likely reflects reactions to strong Q1 2025 results, with Stanbic reporting a pretax profit of N116.4 billion, an 85.6% increase from the same period last year, alongside growing investor interest in the banking sector.
At its 13th Annual General Meeting in May, shareholders approved a final dividend of N3.00 per 50 kobo share, which was paid out that month.
More recently, the bank announced it had signed a three-year loan facility worth CNY800 million (about N172 billion) with China Development Bank to support Africa-China trade, marking another key development for the year.
Currently, shares of the company are priced at N99 as it edges closer to closing above N100, which would make it the second banking stock on the NGX to do so this year after GTCO.
Market trend
Stanbic IBTC shares opened January 2025 at N58 and closed the month at N64.35, with a trading volume of 13 million shares.
The rally was short-lived, as a pullback began in February and lingered through April 2025, with the stock dipping to N61.05.
Momentum returned in late April following the release of the company’s Q1 2025 results, sparking a bullish run in May that gained further strength in June.
- By the end of the first half, the stock had gained 47%.
So far in July, sentiment has remained upbeat, likely driven by renewed interest in banking stocks and the company’s announcement of a loan facility secured from China Development Bank to support Africa-China trade.
Boosting Africa-China trade
Stanbic IBTC Bank, a subsidiary of Stanbic IBTC Holdings, recently announced the signing of a 3-year loan agreement worth CNY800 million (approximately N172 billion) with the China Development Bank (CDB), aimed at supporting Africa-China trade.
According to the bank, the facility is designed to provide financing solutions for Nigerian corporates and institutions involved in trade and investment flows between Africa and China.
Speaking on the agreement, Wole Adeniyi, CEO of Stanbic IBTC Bank, said: “We are delighted to announce this landmark agreement with China Development Bank, which reflects the strength of our strategic partnerships and our shared commitment to Africa’s economic development.”
He added that the deal gives the bank direct access to liquidity in CNY, allowing it to better serve clients engaged in Africa-China trade and investment.
