Stanbic IBTC Holdings Plc, a member of Standard Bank Group, has announced its six months audited results for the period ended 30 June 2017, with gross earnings at N97.198 billion, an increase of 36.28 percent over the N71.320 billion recorded in the corresponding period of last year.
The result, which was submitted to the Nigerian Stock Exchange in Lagos on Tuesday, August 29, 2017, showed that profit before tax increased by 86 percent to N29.169 billion during the period, from N15.682 billion last year. Profit after tax at N24.112 billion was a growth of 113 percent compared to N11.317 billion in the corresponding period of 2016. Total assets went up by 21 percent to N1.273 trillion from N1.053 trillion in December 2016.
Expressing delight at the result, Chief Executive Officer, Stanbic IBTC Holdings Plc, Yinka Sanni, stated, “The domestic environment in the first half of 2017 recorded a decline in headline inflation, improved foreign exchange liquidity and a gradual economic expansion as measured by the Purchasing Managers’ Index. The improved operating environment positively impacted our businesses leading to significant improvement in our financial results.”
He further stated, “Income before impairment charges grew by 43 percent, driven by a sustained growth in yields from investment securities and trading activities. Interest income increased by 55 percent and trading revenue grew by 81 percent, positively impacting profit after tax which increased by 113 percent year-on-year. The balance sheet grew by 21 percent year-to-date as trading assets and financial investments increased by over 100 percent and 19 percent respectively. Our cost-to-income ratio continued to witness improvement, standing at 47.0 percent at the end of H1 2017 when compared with 57.7 percent in H1 2016. The growth in non-performing loan ratio is on account of some newly classified loans in line with economic realities. We are optimistic that this would moderate towards the end of 2017.”
He noted that, “Stanbic IBTC’s progress over the first half year was impressive in many areas and in particular, we are delighted with our ranking following the latest release of KPMG Banking Industry Customer Satisfaction Survey, which showed our retail banking business improving in ranking from the 4th position to the 3rd position and our corporate banking business improving from the 10th position to the 4th position. This is well-aligned with our strategy to drive customer centricity.”
Sanni said, “The group will continue to explore opportunities to grow our business and market share responsibly through the adoption of an appropriate risk appetite and excellent service delivery.”
The Group maintained adequate capital to support its business and drive business growth in H1 2017. The group’s total capital adequacy ratio at the close of the period was 22.9 percent (Bank: 20.2 percent) and Tier 1 capital adequacy ratio of 19.2 percent (Bank: 16.1 percent). These ratios are well above the 10 percent minimum statutory requirement. The group’s liquidity ratio closed at 100.24 percent, while the Bank’s liquidity ratio was at 90.37 percent at the end of H1 2017. This ratio is significantly higher than the 30 percent regulatory minimum.
Following the adoption of the holding company structure in 2012, the operating subsidiaries of Stanbic IBTC Holdings Plc are Stanbic IBTC Bank PLC, Stanbic IBTC Pension Managers Limited, Stanbic IBTC Asset Management Limited, Stanbic IBTC Capital Limited, Stanbic IBTC Investments Limited, Stanbic IBTC Stockbrokers Limited, Stanbic IBTC Ventures Limited, Stanbic IBTC Insurance Brokers Limited and Stanbic IBTC Trustees Limited.
Stanbic IBTC Holdings PLC is a member of Standard Bank Group, 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. Stanbic IBTC belongs to the Standard Bank Group, the largest African financial institution by assets and earnings. It is rooted in Africa with strategic representation in 20 countries on the African continent. Standard Bank has been in operation for 154 years and is focused on building first-class, on-the-ground financial services institutions in chosen countries in Africa; and connecting selected emerging markets to Africa by applying sector expertise, particularly in natural resources, power and infrastructure
Stanbic IBTC Group Nets N24.1bn Profit In Half-year 2017
