Stanbic IBTC Holdings Plc has posted another impressive performance despite the headwinds in the economy. The financial institution, which recorded N28 billion profit after tax (PAT) for the 2016 financial year, consolidated on the performance, recording improved results for the first quarter (Q1) ended March 31, 2017.
The bank recorded gross earnings of N47 billion in 2017, up by 35 per cent from N34.8 billion recorded in the corresponding quarter last year. Net interest income rose by 18 per cent from N17.1billion in Q1, 2016 to N20.2 billion. Operating expenses followed the upward trend rising from N14.8 billion to N17 billion.
However, Stanbic IBTC grew its profit before tax by 78 per cent from N10.5 billion to N18.6 billion, while profit after tax soared by 101 per cent from N8.0 billion to N16.1 billion. Net margin improved to 34 per cent, compared with 23 per cent in Q1 of 2016.
Market analysts said the bank’s Q1 results marked a significant improvement and if maintained throughout the remaining quarters of the year, would mean higher returns for shareholders.
Commenting on the result, Chief Executive of Stanbic IBTC Holdings Plc Mr. Yinka Sanni, said: “I am delighted to announce another strong performance for the first quarter of 2017 following the recent release of our FY 2016 results. Stanbic IBTC Group achieved significant growth in profit after tax by over 100%, despite the challenging trading environment which was characterised by challenges with FX liquidity, difficult credit environment and an increasing cost of operations.”
He added: “We remain positive that economic activities will improve as the Nigerian economy is beginning to show signs of positive outlook due to an increase in the supply of foreign exchange to both retail and corporate users and decreasing headline inflation. As we focus on driving our objective to be the leading end-to-end financial solutions provider in Nigeria, we will continue to leverage on our upgraded digital channels and our membership of the Standard Bank Group.”
According to him, the group’s liquidity ratio closed at 94.35 per cent, while the bank’s liquidity ratio was at 83.99 per cent at the end of Q1 2017.
“These ratios are significantly higher than the 30 percent regulatory minimum. Also, the group’s capital adequacy ratio remained well above the minimum statutory requirement of 10 per cent, with total capital adequacy ratio of 21.69 percent. The Group’s capital is deemed adequate to drive business growth and support business risks and contingencies over the year,” Sanni said.