Stanbic IBTC Records N234bn Earnings, N83.2bn Profit after Tax

By Goddy Egene

Stanbic IBTC Holdings Plc has reported a profit after tax (PAT) of N83.211 billion for the year ended December 31, 2020, showing an increase of 109 per cent compared to N75.035 billion in 2019.According to the unaudited results, Stanbic IBTC ended the year with gross earnings of N234.446 billion as against N233.808 billion in 2019. Impairment charges soared from N1.632 billion to N9.935 billion in 2020.

Profit before tax stood at N94.717 billion in 2020, up from N90.925 billion, while PAT printed at N83.211 billion as against N75.035 billion in 2019. Stanbic IBTC ‘s deposits to customers improved from N819.944 billion compared with N637.840 billion, while loans and advances improved from N532.124 billion to N625.139 billion.

Assessing the numbers, analysts at FSDH Merchant Bank Research said Stanbic IBTC reported a 6.6 per cent increase in total income to N198.9 billion in 2020 primarily driven by a 14.7 per cent jump in non-interest revenue to N124.7 billion.

Non-interest revenue ascended 14.7 per cent powered by a 43.4 per cent increase in trading income to N52.1 billion.

“ As the bank continues its disciplined approach to treating delinquent assets, the credit impairment on financial assets was a charge of N9.9 billion in 2020, compared to N1.6 billion in 2019,” they said.

The bank reported a decline in the effective tax rate to 12.7 per cent from 17.5 per cent, due to change in tax basis for the banking subsidiary. Hence, it reported a 10.9 per cent growth in net profit to N83.2 billion and earnings per share stood at N7.29 versus N6.92 in 2019.

“ Looking at the financial performance by segments, in the Personal & Business Banking segment, the net interest income sank 25.5 per cent to N26.9 billion. Simultaneously, non-interest revenue slumped 27.9 per cent to N11.7 billion, resulting in a 26.2 per cent fall in total income to N38.6 billion in 2020. In contrast, in Corporate & Investment Banking segment, the net Interest income jumped 23.7 per cent to N43.6 billion, while non-interest revenue climbed 28.8 per cent to N68.4 billion in 2020. The 3.1 per cent increase in the Wealth segment’s income was driven by a 9.9 per cent growth in the non-interest revenue to N53.0 billion, slightly offset by a 42.6 per cent decline in net interest income to N3.7 billion in 2020,” they said.

Meanwhile, the stock market opened February on negative note as the Nigerian Stock Exchange (NSE) All-Share Index fell by 0.13 per cent to be at 42,357.90 yesterday.

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