Stanbic IBTC Profit Jumps 122%, Declares Dividend
Stanbic IBTC Holdings Plc doubled down its earnings performance in the first half of 2023, a review of the financial services group’s audited financial statement submitted to the regulator showed about a 122% spike in profitability.
Specifically, profit after tax at the group level surged N67.9 billion in the first half of the year, representing 121.5% year-on-year growth compared with N30.7 billion posted in the comparable period in 2022.
The holdings reported a 2.3x jump in earnings per share (EPS) to N5.12 in the period, reflecting the combined impact of higher trading and interest income streams, according to analysts’ review.
The financial services group’s audited numbers showed a 61.6% year-on-year increase in interest income to N110.3 billion driven by improved yields on risk assets from N68.2 billion in the comparable period in 2022.
Interest expense on funding sources also grew strongly, up 110% year on year to N37.6 billion. Overall, Stanbic IBTC boosted its net interest income by 44.3% year on year to N72.7 billion in H1-2023.
Likewise, the bank said a spike in fees and commission lines. Its audited result showed that net fees and commissions jerked up by 12.3% year on year as a result of improved management fees.
Other Income grew significantly in the period, up by 172.9% year on year, according to the company’s financial scorecard submitted to the regulators.
The growth in Other Income was due to a 174.0% year-on-year growth in trading revenue on fixed income and currencies to N44.7 billion, according to analysts.
The group reported an Impairment charge of N5.98 billion in H1 2023, 9.4% higher than N5.47 billion reported in H1 2022 bringing its annualised Cost of Risk (COR) to 0.8%.
The numbers showed that Stanbic IBTC’s non-performing loan ratio was 2.34% in the period compared with 2.38% in December 2022.
The group’s operating expenses grew moderately, up 21.3% year on year but declined marginally in Q2 2023 compared with Q1. The moderate growth in OPEX compared with the strong growth in total operating income of 51.2% led to an improvement in Cost to Income Ratio.
At the end of the first half of 2023, the group’s pre-tax profit spiked by 107.6% year on year to N83.0 billion. Its audited results showed a net profit growth of 121.5% year on year to N67.92 billion.
Despite healthy credit growth in the period, Stanbic IBTC’s total Basel 2 capital adequacy ratio closed at 18.2% in H1 2023 which is significantly higher than the 11% minimum regulatory requirement. #Stanbic IBTC Profit Jumps 122%, Declares Dividend