· Stanbic IBTC’s (Stanbic) H1 PBT was down 52% y/y and Net Profits were down 40% y/y, lagging our 2015e run-rate. The drivers were a significant increase in Interest Expense and a high Impairment Charge (We modelled a lower cost of risk of 2.5% for the bank in 2015).
· Annualised RoAE of 15.0% for H1 2015 (using CSL’s 2015e equity estimate) is well short of our forecast of 20.4% for the full year. The bank has proposed an interim dividend of N0.90/s.
· We have a Hold rating on Stanbic with a price target of N28.82/share (current price: N25.01) based on an implied 1.9x PBV to our forecast 2015e BVPS of N14.3/s.
Download the report here
No comments:
Post a Comment