Stanbic Africa Holdings the majority shareholder in Nigeria’s Stanbic IBTC Holdings has been purchasing stock in the Nigerian banking unit as its shares slide amid a string of weak earnings.
Stanbic Africa Holdings has purchased 39.25 million shares of Stanbic IBTC Holdings Plc since November 1st, 2021, at an average price of N39 per share, for a total consideration of N1.53 billion.
The shares which are listed on the Nigeria Exchange Group (NGX) are down 11.46 percent year to date, underperforming the NGX all share index which has risen by 7.91 percent in the same period.
MoneyCentral recently reported that Stanbic IBTC Holdings profit slumped to a four-year low in Q3 (third quarter), leaving analysts concerned that margins could further deteriorate in the last quarter of the year.
Stanbic Africa Holdings may be mopping up shares in its subsidiary as it sees it as undervalued, one analyst told MoneyCentral.