Stanbic IBTC Nigeria Climbs Most in Two Months as Profit Surges

Stanbic IBTC Holding Co. (STANBIC), the Nigerian unit of South Africa’s Standard Bank Group Ltd. (SBK), rose the most in almost two months after reporting nine-month profit increased 64 percent.

Net income climbed to 16.9 billion naira ($106 million) in the nine months through September, from 10.3 billion naira a year earlier, Stanbic IBTC said in filing to the Nigerian Stock Exchange today. Non interest income gained 70 percent to 36.4 billion naira.

“We expect the positives on the non-interest income line and the other comprehensive income result to attract the market’s attention,” Bunmi Asaolu, an analyst at Lagos-based FBN Capital Ltd., said in e-mailed comments.

The Central Bank of Nigeria increased the cash-reserve requirement for public funds in banks to 50 percent from 12 percent, Governor Lamido Sanusi said July 23, warning about the risk of excess liquidity in the banking industry. The regulator said lenders should lower fees and commissions from April 1 to reduce conflict with clients.

Stanbic IBTC advanced 4.5 percent, the most since Sept. 4, to 19.95 naira in Lagos trading. About 2.5 million shares were traded, about double the three-month daily average. The stock has climbed 81 percent this year, compared with a 17 percent gain for the Bloomberg NSE Banking Index, which tracks Nigeria’s top 10 banks by market value.

To contact the reporter on this story: Emele Onu in Lagos at eonu1@bloomberg.net

To contact the editor responsible for this story: Vernon Wessels at vwessels@bloomberg.net

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