Stanbic IBTC Grows Profit by 71% to N116bn, Declares Interim Dividend
Stanbic IBTC Holdings has announced 71.3% year on year profit growth for the first half of 2024, according to details from its audited financial results.
Earnings per share reached N18 in the first half of the year from N10.50 in the comparable period due to improved bottom line performance.
In addition, the bank announced an interim dividend of N2.0 per share, an increase from N1.5 paid in the comparable period, which translates to a yield of 3.4% based on the stock’s last market close.
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Gross earnings rose by about 80% year on year to settle at N375.3 billion in the first half of 2024, from N208.9 billion. The topline was spiced up by growth in interest yielding asset and non-interest related revenue.
The financial services warehouse saw it profit climbing from N67.9 billion in the first half of 2023 to N116.4 billion in June, 2024. High interest rate environment was among the key driver of the group earnings boost in the period.
Interest income increased by 123% year on year to N246.1 billion from N110.3 billion in the comparable period in 2023. At the same time, interest expenses also climbed by 91.2% year on year to N71.8 billion from N37.6 billion 12 months earlier.
This resulted a net interest income of N174.3 billion, representing 139.8% year on year growth from N72.2 billion the group posted in the comparable period.
Stanbic IBTC’s non-interest revenue expanded by 31.0% to settle at N129.1 billion in the first half of the year from N98.6 billion, according to the audited report.
The surge was primarily driven by 41.6% growth recorded in asset management fees and brokerage & financial advisory fees which increased by 144.4% year on year.
The group operating income came in higher at +77.1%, which then masked the 57.8% rise in operating expenses which printed at about N130 billion.
The main contributors to the higher operating expenses were staff costs (+46.0%), AMCON expenses (+70.9%), and information technology (+110.9%).
In the period, Stanbic IBTC results showed that the group recorded a 32.6% increase in gross loans and advances to N2.3 trillion.
A breakdown indicates that non-performing loans expanded by 114.3% to N81.6 billion, translating to an NPL ratio of 3.6%, a steep surge from 2.2% in similar period 12 months earlier.
In tandem with the substantial growth in gross loans, loan provisioning likewise improved, with cost-of-risk advancing to 2.4% from 0.8%, according to CardinalStone Securities Limited. #Stanbic IBTC Grows Profit by 71% to N116bn, Declares Interim Dividend
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