Stanbic IBTC Holdings Plc’s share price has extended its impressive rally, suggesting investors’ growing confidence.
The stock began 2025 at N57.60, closed last week at N109, and has since gained 89.2% year-to-date, ranking it 55th on the NGX in terms of performance.
This sharp re-rating reflects renewed optimism around the bank’s profitability and dividend trend
The stock’s average price between 2020 and 2025 (10/10/25) is N64, and its normal ups and downs are around N17 in either direction showing how actively it has been moving within that band.
The current price sits near the upper bound of its fair-trading range, suggesting that much of the short-term re-pricing may already have occurred.
This rally, however, appears not driven by speculative frenzy, but by solid earnings fundamentals.
- Over the past five years, profit after tax (PAT) has grown at a compound annual growth rate (CAGR) of 29%, the least among the Nigerian banks, yet still impressive in absolute terms.
- In FY 2024, Stanbic reported N225.3 billion in PAT, followed by a strong N173.4 billion in H1 2025, putting it firmly on track to surpass N300 billion for the full year if momentum continues.
Valuation and outlook
With 15.9 billion outstanding shares, Stanbic IBTC’s trailing twelve-month (TTM) earnings per share (EPS) stands at N19.1, translating to a TTM price-to-earnings (P/E) ratio of 5.61, notably above the sector average of 3.17.
Forward estimates suggest EPS could reach N21–N23 by year-end 2025, reflecting continued profit momentum.
This premium valuation indicates that investors are rewarding Stanbic for its earnings stability and dependable dividend record.
At the current price of N109, the stock trades at about 5.2x forward earnings, still modest relative to its historical average and peer multiples.
Stanbic’s growth remains supported by a balanced earnings mix, with rising net interest income complemented by steady non-interest income.
Based on forward earnings of roughly N22 per share and applying a forward P/E multiple of 5.2x, a fair value range of N110–N120 emerges.
This makes the N115 per share target achievable within a six-month horizon, provided earnings remain strong, and sentiment stays supportive.
Investment perspective
The stock’s fundamentals justify stability within the N95–N115 band, though a short-term pullback toward N92–N95 could present a more attractive entry for investors seeking value.
For existing shareholders, Stanbic’s strong earnings visibility, dividend consistency, and healthy return on equity support a hold position.
For new entrants, patience may be prudent until a more favourable re-entry level emerges.
Overall, Stanbic IBTC’s rally to N109 highlights market confidence in its profitability and disciplined management.
Yet, with the stock now trading above its long-term average and at a premium to peers, much of the optimism may already be priced in.
In essence, while Stanbic’s ascent is fundamentally justified, its next upward leg will depend more on sustained profit growth than on momentum alone.
