Goddy Egene
Stanbic IBTC Holdings Plc has recorded a jump of 70 per cent in profit after tax (PAT) for the year ended December 31, 2017. According to the audited results released at the Nigerian Stock Exchange (NSE), wednesday, Stanbic IBTC posted PAT of N48.381 billion, up from N28.520 billion in 2016.
In all, Stanbic IBTC recorded gross earnings of N212.4 billion in 2017, up from N156.4 billion in 2016. Total assets increased to N1.386 trillion in 2017, showing a growth of 32 percent over the N1.053 trillion recorded in 2016.
The growth in the balance sheet size was driven mainly by customers’ deposits, which recorded a growth of 34 percent to N753.6 billion in 2017 from N561.0 billion in 2016. Gross loans and advances grew by eight percent to N403.9 billion, compared to N375.3 billion recorded in December 2016.
Shareholders of the bank are to receive dividend of 50 kobo per share.
According to the Chief Executive, Stanbic IBTC Holdings Plc, Yinka Sanni, the strong performance was evidence of the positive outcome of the group’s strategy of growing the client base across target and key market segments while maintaining a principled credit process.
“The Group reported its best profitability results since inception. We achieved a 70 per cent growth in profit after tax amid healthy capital and liquidity levels. Our balance sheet grew by 32 per cent to N1.39 trillion and this was funded mainly by customer deposit growth of 34 per cent,†Sanni stated.
He noted that the various business divisions achieved strong operating results as well as retained market leadership across the various businesses such as global markets, investment banking, pension, stockbroking, asset management, and custodial services, with several accolades received during the year.
Looking ahead, Sanni said the Group remains optimistic that it will sustain the improved financial performance in 2018 and beyond.
“While we are encouraged by the impressive results, we remain focused on improving risk asset quality, managing our cost base, maintaining our capital strength and increasing our returns to shareholders. We are positive that the Group will benefit from a more stable macroeconomic environment to drive growth in lending and other business activities,†he said.
However, analysts at FBN Quest said the 50 kobo dividend is below market expectation.
“Consensus and FBN Quest Capital expected at least 100 kobo. The market does not have a good handle on dividend expectations because the payout ratio over the last few years has seen significant fluctuations. Even if the proposed dividend had matched expectations, the low single digit yield would have had no impact on the stock in our view,†they said.
