The first half of the year ending in June 2023 would see higher capital gains for Stanbic IBTC Holdings Plc shareholders, according to research.
According to The Punch, in the period from June 2022 to June 2023, holders of holding company stock saw a 124 percent increase in wealth as a result of capital gains.
The implication is that a N1.0 million investment made in June 2022 would have grown to N2.24 million by the end of the fiscal year that ended on June 30, 2023.
According to the performance analysis of the shares, they increased from N28.0 per share in H1 2022 to N62.8 in H1 2023, a significant Y/Y rise of 124%.
According to financial specialists at Cordros Research, the significant increase in the market price demonstrated favourable investor mood and confidence in the company’s prospects.
The corporation also boosted its net profit by 11%, from N30.7 billion in the first half of 2022 to N67.9 billion in the second half of 2023, which concluded on June 30.
The company’s good financial performance was highlighted by the large growth in profit after taxes. Earnings per share also climbed by 127%, from N2.26 in H1 2022 to N5.12 in H1 2023, suggesting strong earnings growth.
An analysis of the bank’s main financial data during the review period revealed that the significant increase in profit might be attributed to the significant increase in interest income, which increased from N68.2 billion in H1 2022 to N110.3 billion in H1 2023 representing 62 per cent Y/Y growth.
The considerable rise in interest costs was attributed by Cordros Research to higher borrowing costs brought on by rising interest rates. Despite the higher interest expenses, net interest income increased by 44% year over year to N72.7 billion in the first quarter of 2023.
