Stanbic Holdings exceeded in-house expectations to record a strong 34.2% y/y growth in net earnings to KES 12.16Bn throughout 2023. The performance now cements a strong double-digit return corridor for the third consecutive year.
2023 performance was shaped by a faster surge in operating incomes relative to operating expenses. Net Interest Income soared 35.4% y/y to KES 25.65Bn largely driven by organic loan demand, bolstered by the loan up- pricing under the risk-based pricing regime.
Recommendation- We maintain our BUY recommendation on Stanbic Holdings on account of its accelerating return on equity and agile revenue growth. Our one-year target price for Stanbic currently stands at KES 139.45 - representing a c.16.2% upside potential from current levels.
