Banking Sector

Stanbic IBTC Posts 31.5 Percent Decline in Profit in 2021 FY

Stanbic IBTC Holdings Plc, a leading bank in Nigeria and Africa, recorded a 31.52 percent decline in profit after tax to N56.984 billion in the financial year ended December 31, 2021.

Gross earnings also dipped 12.22 percent to N205.807 billion, below N234.446 recorded in 2020 when COVID-19 struck the globe and grounded business activities. Net interest income inched slightly higher by 1.56 percent to N75.372 billion on the back of a moderating interest expense.

Non-interest revenue declined to N95.788 billion, representing a decline of 23.19 percent from N95.788 billion filed in the 2020 financial year.

This was disclosed in the bank’s unaudited financial statements released on Friday.

Stanbic IBTC’s total income for the year dropped by 13.96 to N171.160 billion, down from N198.924 billion posted in the corresponding period of 2020.

Profit before tax plunged by 30.29 percent from N94.717 billion in 2020 to N66.021 billion. The lender paid an income tax of N9.037 billion to report N56.984 billion profit after tax.

Earlier this year, Investors King reported that announced plans to venture into fintech in an effort to cut costs of operations and improve profitability across its business units.

According to the lender, the financial technology services unit will be called Stanbic IBTC Financial Services Limited once it received approval from the regulatory body.

Dr. Demola Sogunle, Chief Executive Officer of Stanbic IBTC, who commented on the bank’s performance and plans for the future in October 2021, explained why Stanbic IBTC is going digital and restructuring its key units.

He said “in line with our core value of delivering value to our shareholders, the restructuring will advance the execution of our digital business transformation and enable us to achieve accelerated future readiness for the business and growth through effective mining of the client ecosystems propelled by a future-ready workforce. We continue to make progress in supporting the financial needs of our communities in the third quarter of 2021. Investing to advance tree planting exercise, youth, and women empowerment through donations, sponsorships and partnerships, library upgrade and renovation, hospital unit refurbishment, amongst others.”

 

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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