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Stanbic IBTC Posts N303.8bn PBT in 2024 as Interest Income Soars

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Stanbic IBTC - investorsking.com

Stanbic IBTC grew Profit Before Tax (PBT) by 76% year-on-year (y-o-y) to N303.8 billion in the year ended 31 December 2024, compared to N172.9 billion recorded in the same period of 2023.

The Group’s interest income surged by 109% to N566.5 billion, reflecting higher lending volumes and favorable interest rate dynamics.

This resulted in a 134% increase in net interest income (NII) to N410.5 billion, compared to N175.2 billion in 2023, according to the Group’s unaudited financial statement obtained by Investors King.

Strong Interest Income Growth Drives Earnings Expansion

  • Net interest income (NII) for FY 2024 soared by 134% year-on-year (y-o-y) to N410.5 billion, compared to N175.2 billion in 2023, underscoring the Group’s strong asset growth and enhanced yield on interest-bearing assets.
  • Interest income rose by 109% y-o-y to N566.5 billion, reflecting higher lending volumes and an increase in interest rates during the year.
  • Despite a 63% rise in interest expenses to N156.0 billion, net interest margins remained strong, supporting overall revenue growth.

Non-Interest Revenue Shows Resilient Growth

  • Non-interest revenue (NIR) increased by 31% to N236.4 billion in 2024, up from N179.9 billion in 2023, highlighting strong fee and commission-based earnings.
  • Net fee and commission revenue surged by 55% to N170.4 billion, driven by higher transaction volumes on digital channels, fund transfers, and advisory services.
  • Trading revenue stood at N57.6 billion, contributing significantly to the Group’s earnings diversification.

Profitability Surges Despite Higher Costs and Impairment Charges

  • Profit Before Tax (PBT) climbed to N303.8 billion, a 76% increase from N172.9 billion in 2023, showcasing strong operational performance and improved efficiency.
  • Net Profit for the Year stood at N202.1 billion, up 44% from N140.6 billion in 2023, reflecting higher tax charges and increased operating expenses.
  • Basic earnings per share (EPS) increased to 1,531 kobo in 2024, compared to 1,062 kobo in 2023, indicating stronger shareholder returns.

Cost and Risk Management Strategies in Focus

  • Operating expenses increased by 46% to N243.7 billion, compared to N166.8 billion in 2023, reflecting higher staff costs, regulatory expenses, and technology investments.
  • Impairment charges on financial assets surged to N99.4 billion, compared to N15.4 billion in 2023, signaling a cautious approach to credit risk management in a challenging macroeconomic landscape.
  • Income tax expenses increased significantly to N101.7 billion, compared to N32.3 billion in 2023, reflecting the higher tax burden on increased earnings.

Key Takeaways

  1. Robust Revenue Growth – A 134% surge in net interest income and 31% growth in non-interest revenue underscore Stanbic IBTC’s strong earnings generation capability.
  2. Profitability Maintained Despite Higher Costs – The 76% rise in PBT and 44% increase in PAT indicate strong underlying financial health.
  3. Strategic Cost Management Required – Rising staff and operating costs need to be optimized to sustain profitability growth.
  4. Shareholder Value on the Rise – The EPS growth from 1,062 kobo to 1,531 kobo reflects improved returns to investors.

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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