Stanbic IBTC Holdings Plc Reports 121.46% Surge in Profit in H1 2023

Stanbic IBTC Holdings Plc, a prominent financial institution, has unveiled its half-year 2023 financial report.

This report reveals a 121.46 percent increase in Profit After Tax to N67.919 billion, compared to N30.669 billion filed during the same period in 2022.

The financial report, submitted to the Nigerian Exchange Limited, experienced a slight delay due to the institution’s pursuit of approval from its primary regulator, the Central Bank of Nigeria.

Stanbic’s report highlights impressive financial performance metrics for the period ending on June 30, 2023, including a 58.18 percent boost in gross earnings, a significant 107.58 percent increase in profit before tax, and the aforementioned 121.46 percent surge in profit after tax.

Also, the board of directors has recommended the approval of an interim dividend of 150 kobo per share, which remains consistent with the same period in 2022.

These outstanding results can be attributed to several factors, such as a substantial 44.35 percent rise in Net Interest Income, soaring from N50.353 billion in 2022 to N72.684 billion. Additionally, non-interest revenue experienced a robust growth of 56.64 percent, increasing to N98.618 billion from N62.957 billion.

Although there was a marginal uptick in net impairment loss on financial assets, moving from N5.467 billion to N5.979 billion, it did not deter the overall positive performance.

The institution’s total assets grew by 47 percent to N4.45 trillion (compared to N3.03 trillion in December 2022), and gross loans and advances also showed substantial growth, rising by 37 percent to N1.70 trillion (compared to N1.24 trillion in December 2022).

Commenting on the results, the Chief Executive Stanbic IBTC, Dr Demola Sogunle, said, “The first half of 2023 was an eventful one for us as an organisation within the Nigerian operating environment. Events such as the general elections and cash scarcity led to relatively slower business activities at the beginning of the year, causing the Stanbic IBTC Bank Purchasing Manager Index to print below 50 index points.

“Business activities, however, picked up in the second quarter, with the PMI moving back above 50 points in April 2023 and closing at 53.2 in June 2023, following the improvement in access to cash, increase in customer demand and business expansion. We reported significant growth in our key income lines during the period under review.

“The Group’s profitability increased by over 100 per cent year-on-year (driven by growth across our revenue streams. Interest income grew by 62 per cent YoY, mainly due to higher yield and volume of loans and investments, which is in line with our efforts to support our clients through loan offerings and investment opportunities.”

Sogunle added that Stanbic IBTC Bank processed the first inbound commercial transaction on the Pan African Payment and Settlement System in Nigeria. PAPSS is an initiative of the African Union and the African Continental Free Trade Area Secretariat, designed to promote intra-African trade and economic integration.

He said, “This demonstrates our efforts to provide our clients with efficient and secure payment and settlement solutions across Africa. We will continue to leverage our expertise to provide solutions that enable our clients to unlock the full potential of the African market.”