Stanbic IBTC Holdings is enjoying a robust run on the Nigerian Exchange, with its share price rising by 17% in July alone, bringing its year-to-date return to over 71%. The financial services group, known for its strong performance track record, appears to be reaping the rewards of solid earnings, increased investor appetite for banking stocks, and recent strategic developments.
Currently trading at ₦99 per share, Stanbic IBTC is now on the verge of crossing the ₦100 threshold—a milestone that would make it only the second banking stock on the NGX to do so this year, following Guaranty Trust Holding Company (GTCO).
Earnings-Driven Recovery
After a modest start to 2025, Stanbic IBTC’s stock witnessed periods of fluctuation before gaining significant traction. From an opening price of ₦58 in January, the stock rose to ₦64.35 by the end of the month, before undergoing a pullback that lasted until April, briefly dropping to ₦61.05.
The tide turned decisively in late April when the company released its first-quarter results. The report revealed a pre-tax profit of ₦116.4 billion—an 85.6% increase compared to the same period in 2024. This sharp rise in profitability reignited investor interest and triggered a sustained rally in May and June.
By the end of the first half of the year, Stanbic IBTC’s stock had appreciated by 47%. The momentum has since carried over into July, supported by optimism around the banking sector and a newly announced funding agreement with a major Chinese financial institution.
Strengthening Africa-China Economic Ties
In a notable move that underscores its international outlook, Stanbic IBTC Bank—a subsidiary of Stanbic IBTC Holdings—recently finalized a three-year loan facility worth ¥800 million (approximately ₦172 billion) with the China Development Bank. The agreement is intended to boost trade and investment between Africa and China, providing a fresh injection of capital for Nigerian corporates operating in that space.
Wole Adeniyi, CEO of Stanbic IBTC Bank, described the deal as a significant step in the bank’s long-term vision. “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 said.
He further noted that the facility offers the bank direct access to liquidity in Chinese yuan, enabling it to offer tailored financing solutions for clients engaged in cross-border trade between the two regions.
Dividend Payout Reflects Confidence
Earlier in the year, at its 13th Annual General Meeting in May, shareholders approved a final dividend of ₦3.00 per 50 kobo share. The payment, disbursed later that same month, underscored the company’s commitment to delivering value to investors.
Combined with strong financial performance, a strategic international financing deal, and investor-friendly dividend policies, Stanbic IBTC’s recent market performance suggests it is well-positioned to maintain its upward trajectory.
With the ₦100 mark now within striking distance, all eyes will be on the stock to see if it can sustain its rally and cement its place among the NGX’s top-performing banking equities in 2025.