- Stanbic IBTC Declares N10.1b First Half Dividend
The board of directors of Stanbic IBTC Holdings Plc has recommended 66.7 per cent increase in interim dividend payout as the financial services holding company grew net profit by 79 per cent to N43.08 billion in the first half of 2018.
The board of directors yesterday indicated that shareholders will receive N10.11 billion as interim dividend for the first half of 2018, representing interim dividend per share of N1 as against 60 kobo paid for the corresponding period of 2017.
Under a resolution passed at its extraordinary general meeting in August 2016, shareholders of Stanbic IBTC Holdings may choose to receive dividends declared by the company, up to year 2020, either in cash or as new ordinary shares in the company.
Key extracts of the audited report and accounts of Stanbic IBTC Holdings for the six-month period ended June 30, 2018 showed that gross earnings grew by 17 per cent while profit after tax jumped by 79 per cent. Gross earnings rose from N97.20 billion in first half 2017 to N114.21 billion in first half 2018. Profit before tax also leapt by 74 per cent to N50.73 billion in first half 2018 compared with N29.17 billion in the corresponding period of 2017. Profit after tax increased to N43.08 billion in 2018 as against N24.11 billion recorded in the corresponding period of 2017. Total assets closed first half 2018 at N1.37 trillion as against N1.39 trillion recorded in December 2017.
Chief Executive Officer, Stanbic IBTC Holdings Plc, Yinka Sanni, described the first half results as stellar performance noting that the bottom-line was boosted by non-interest revenue growth and recoveries from delinquent assets previously impaired.
According to him, the company’s credit impairment line had a write back of N5.5 billion as at June 2018 as the company continues to intensify recovery efforts on previously classified loans.
He noted that the company has been making good progress on its drive to reduce cost of funds which has reduced by more than 100 basis points, with a 15 per cent reduction in interest cost between first and second quarters of 2018.
“We have seen significant growth in transaction volumes across our digital platforms. The volume of transactions via our mobile banking, SME internet banking, USSD platforms and ATMs have increased by over 100 per cent each year-on-year as we continued to drive non-interest income growth. Also, we kicked off the initial stage of implementing a virtual banking proposition,” Sanni said.
He added that the group’s Africa-China Banking Center was recently launched with the aim of providing bespoke solutions and addressing the needs of business communities in both Nigeria and China while leveraging on its relationship with Standard Bank and the Industrial & Commercial Bank of China (ICBC). Stanbic IBTC Holdings is a member of Standard Bank Group.
He assured that the group remains focused on driving long-term value for its clients and shareholders through its balanced and diversified business model.
“We remain well-positioned to meet expected future capital requirements and growth”, Sanni stated.
Further analysis showed that the group maintained capital adequacy levels that are significantly above the regulatory limit of 10 per cent. The group’s total capital adequacy ratio for the period closed at 27.4 per cent while the commercial banking entity had a ratio of 23.0 per cent. Group Tier 1 capital adequacy ratio stood at 23.3 per cent with the bank having 18.5 per cent). The improvement in group capital adequacy ratio to 27.4 percent from 23.5 percent in December 2017 was as a result of the significant increase in retained profit.
