Atedo Peterside, a Nigerian businessman, has seen his fortune shrink significantly as the market value of his interest in Stanbic IBTC Holdings (Stanbic IBTC) has fallen since January 16. This decline is mostly due to the depreciation of the naira and a significant drop in the shares of the largest bank.
Peterside, one of the country’s wealthiest bankers, has seen the market value of his shareholding in Stanbic IBTC fall by N2.14 billion ($3.41 million) since January 16. This decline occurs as investors on the local stock exchange continue to reduce their interests in the financial services group.
Stanbic IBTC, a major player in Nigeria’s financial services sector with a total asset value of N5.146 trillion ($4.1 billion), has had its market capitalization fall below $600 million from more than $1 billion. The key drivers of this fall are Nigeria’s tough financial landscape and the depreciation of the country’s currency, the naira.
Since January 16, Stanbic IBTC’s share price on the Nigerian Exchange has fallen from N68.5 ($0.0715) to N52.50 ($0.04514) due to devaluation and a huge 23.36 percent loss. As a result, shareholders, including Atedo Peterside, have incurred significant losses totaling millions of dollars.
Peterside, a significant person in Nigeria’s banking industry and the creator of Anap Business Jets Limited and the Atedo N. A. Peterside Foundation, owns 1.14 percent of Stanbic IBTC, which equates to 133,611,115 ordinary shares in the business.
Because of the drop in Stanbic IBTC shares and currency fluctuations, the market value of Peterside’s investment has dropped by N2.14 billion ($3.41 million) during the last 92 days, from N9.15 billion ($9.56 million) on January 16 to N7.01 billion ($6.15 million).
While Atedo Peterside’s holding in Stanbic IBTC has declined significantly, he remains well-positioned to benefit from the hefty dividends offered by Nigeria’s top bank this year. Nigerian banks demonstrated exceptional financial performance at the end of the fiscal year 2023.
Stanbic IBTC announced a 74% year-on-year increase in profit to N140.62 billion ($108.9 million), surpassing the N80.81 billion ($62.5 million) profit recorded in 2022. The bank’s outstanding performance strengthens its position as a dominant force in Nigeria’s banking sector.
Stanbic IBTC’s board of directors has proposed a dividend of N2.20 ($0.001712) per share, totaling N28.5 billion ($22.12 million), to be paid from retained earnings. This excellent dividend declaration demonstrates the bank’s resilience, creativity, and persistent commitment to excellence in Nigeria’s financial landscape.
