Equity Analysis /

Stanbic IBTC: STANBIC IBTC: Q1 EPS beat – first-class capital allocation fairly priced in; Hold

    Tellimer Research
    24 April 2018
    Published byTellimer Research
    The bank delivers superior returns – 48% ROE and 23% CAR – and has gone from strength to strength despite an unrelenting credit risk environment (9.9% NPL ratio). However, we maintain our Hold recommendation with a target price of NGN47.0/share as we believe valuations (2.2x 2018f PB versus 2.1x implied in our target price) sufficiently reflect the bank’s healthy returns and measured risk profile.