Stanbic IBTC Grows Profit After Tax by 54% to N74 Billion

Stanbic IBTC Grows Profit After Tax by 54% to N74 Billion

Stanbic IBTC Grows Profit After Tax by 54% to N74 Billion

Stanbic IBTC Holdings Plc, a member of Standard Bank Group, has announced gross earnings of N222.4 billion, for the financial year ended December 31, 2018, up from N212.4 billion it achieved in 2017. A breakdown of the figures showed that net interest income rose to N102.604 billion from N89.182 billion. Net fee and commission income also improved from N59.1 billion to N69.845 billion. Operating expenses increased from N86.02 billion to N95.60 billion, while staff cost rose from N36.283 billion to N43.0 billion. Profit before tax rose from N61.166 billion in 2017 to N88.152 billion in 2018, while profit after tax appreciated by 54 per cent to N74.4 billion compared with the N48.4 billion recorded in 2017.

The group’s total assets grew by 20 per cent to N1,663.7 billion compared with the N1,386.4 billion in December 2017. Customer deposit grew by seven to N807.7 billion from N753.6 billion in the corresponding year. The bank was able to reduce its toxic assets appreciably, as gross non-performing loans decreased by 50 per cent to N17.7 billion compared with N35.3 billion in 2017. The non-performing loans figure is even more impressive when viewed against the 14 per cent (N458.9 billion in 2018 – N403.9 billion in 2017) increase in gross loans and advances achieved in the financial year.

The Chief Executive, Stanbic IBTC Holdings Plc, Mr Yinka Sanni, said the balance sheet size was impacted by “growth in risk assets and financial investment portfolio,” a reflection of investment expertise and quality management, which saw its non-interest revenue rose by 15% to N102.6 billion from N89.2 billion in 2017. According to Sanni, “Strong growth in fees and commission income as well as write-backs, which resulted from recoveries made on previously written off loans and reversals on some non-performing loan, contributed to the strong showing.”

Stanbic IBTC said performances across its three divisions, Corporate and Investment Banking, Wealth Management businesses, and Personal & Business Banking, were strong and contributed to the turnover.

“As a financial institution we will continue to leverage on our universal financial services capability, unrelenting focus on cost control, digitization and client centricity to ensure that we continue to grow our capacity to provide incomparable high quality end-to-end financial solutions to our customers in a sustainable manner,” he assured.

Stanbic IBTC Holdings Plc, member of Standard Bank Group, is a full service financial services group with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management.

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