STANBIC crossed an earnings milestone (above N100.0 billion) in FY'23, aided by strong revenues from both net interest income (NII) and non- interest revenue (NIR). For FY'24E, we expect this earnings momentum to be sustained. Already, STANBIC has demonstrated a strong capacity to create quality credit assets (NPL at 2.9%) and grow its asset under management (AUM) (+9.0% to N7.9 trillion) in the first quarter of the year. In an elevated interest rate environment, STANBIC's robust earnings base could continue into improved returns. We, therefore, forecast a 42.0% increase in net income to N199.7 billion, with a 3.9% YoY improvement in ROE to 34.7%.
