MARKET NEWS
Stanbic IBTC Holdings Plc, a member of Standard Bank Group, on Tuesday announced its audited results for the six months ended 30 June 2017, showing impressive growth.
Gross earnings rose by 36 per cent to N97.198 billion in 2017, from the N71.320 billion recorded in the corresponding period of 2016.Net interest income jumped by 79 per cent from N22.8 billon to N41 billion. Credit impairment charges stood at N14 billion, showing an increase of 65 per cent compared with N8.5 billion in 2016.
However, profit before tax (PBT) increased by 86 per cent to N29.169 billion during the period, from N15.682 billion last year, while profit after tax (PAT) grew faster, rising by 113 per cent from N11.317 billion to N24.112 billion. Total assets went up by 21 per cent to N1.273 trillion from N1.053 trillion in December 2016.
Commenting on the results, Chief Executive Officer, Stanbic IBTC Holdings Plc, Yinka Sanni, said: “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 per cent and trading revenue grew by 81percent positively impacting PAT, which increased by 113 per cent year-on-year. The balance sheet grew by 21 per cent year-to-date as trading assets and financial investments increased by over 100 per cent and 19 per cent respectively. Our cost-to-income ratio continued to witness improvement, standing at 47.0 per cent at the end of H1 2017 when compared with 57.7 per cent 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.â€
According to Sanni, Stanbic IBTC’s progress over the H1 of 2917, 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,” he said.
The CEO assured that the group will continue to explore opportunities to grow its business and market share responsibly through the adoption of an appropriate risk appetite and excellent service delivery.
Sanni explained that 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 per cent and Tier 1 capital adequacy ratio of 19.2 per cent. These ratios are well above the 10 percent minimum statutory requirement. The group’s liquidity ratio closed at 100.24 per cent while the bank’s liquidity ratio was at 90.37 per cent at the end of H1 2017. This ratio is significantly higher than the 30 per cent regulatory minimum,” he said.
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 StanbicIBTC Trustees Limited.
