Stanbic IBTC Bank Plc (IBTCCB), a unit of Standard Bank Group Ltd. (SBK), rose to a three-month high after announcing higher profit and plans to cancel four-fifths of shares as it restructures into a holding company.
The stock gained a third day, climbing as much as 3.6 percent to 7.44 naira and closed at 7.20 naira in Lagos, the highest price since April 20.
Second-quarter net income climbed to 4.99 billion naira ($31 million) from 3.85 billion naira a year earlier, the Lagos- based lender said in a statement published on the website of the Nigerian Stock Exchange dated July 25. Stanbic shareholders will receive 50 kobo for each cancelled share, it said in a statement published in the Lagos-based BusinessDay newspaper today.
“The result and restructuring announcements are positive and are helping the stock to rise,” Abiola Rasaq, a Lagos-based analyst with Vetiva Capital Management, said by phone today. The profit is in line with Vetiva’s expectations, he said.
Stanbic shares have retreated 13 percent this year, compared with a 12 percent rise in the Nigerian Stock Exchange All-Share Index over the same period.
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