Directors of Stanbic IBTC Holdings, on Thursday presented its audited result for the half-year ended June 30, 2018, indicating that profit grew significantly faster than earnings income, despite the 151.38% jump in interest expense.
The board also offered an interim dividend of N10.11bn, representing N1.00 per share, the highest so far, and significantly better than the 60 kobo paid in the prior half-year.
A further look at the numbers showed that there was a N5.508bn net impairment write-back, compared with a charge on financial assets of N13.953bn in the first half of 2017, following which net profit soared by 78.68% from N24.11bn to N43.08bn.
Specifically, Stanbic IBTC Holdings reported 17.5% growth in gross earnings from N97.2bn in 2017, to N114.21bn; with interest income crawling 5.63% up from N56.73bn to N59.92bn; as interest expense rose at a faster25.88% to N19.75bn from N15.69bn. This was swelled by the N14.329bn expense from corporate & investment banking; followed also by the N5.426bn from personal & business banking.
Net interest income therefore dropped from N41.04bn to N40.17bn. Net interest income was boosted significantly by the N2.282bn from corporate and investment banking, which dropped from N23.129bn; followed by the flat N16.123bn from personal & business banking, compared to N16.134bn in prior half year
Net fee and commission revenue stood at N36.687bn from N27.893bn; fee and commission revenue increased to N36.687bn from N28.074bn; even as fee and commission expenses increased to N455m, compared to N181m; resulting in non-interest revenue of N53.828bn.
Trading revenue jumped from N11.966bn to N15.976bn, with corporate & investment banking contributing N15.961bn, up from N11.95bn.
Credit impairment write-back was biggest in the corporate & investment banking segment of the business, which recorded N3.628bn, as against the previous N5.532bn charges; followed by N1.86bn from personal & business banking, an improvement over the previous charges of N8.421bn.
Other revenue recorded one of the most significant jumps to N1.165bn from N430m; while income before credit impairment charge climbed 15.58% from N81.31bn to N94bn.
Operating expense increased 27.68% from N38.2bn to N48.78bn; leaving profit before tax at N50.73bn from N29.17%; just as income tax expense climbed to N7.646bn from N5.057bn.
Net profit stood at N43.08bn, contributed primarily by the N28.324bn from corporate & investment banking, up from N20.43bn in the prior half-year; followed by N12.109bn from wealth business segment, compared to N8.922bn; while personal & business banking became profitable, turning in N2.653bn, compared to a N5.24bn loss in the first half of 2017.
The year’s net profit resulted in earnings per share of N4.16 from which the board will pay N1.00 interim dividend; up from N24.112bn, or N2.30 EPS. Payment will however be to those who remain shareholders at the close of trading on August 28, 2018, will qualify for the dividend, as the register of members will be closed between August 29 and September 4, while payment is slated for September 26, 2018.
The group’s total assets stood at N1.372tr, slightly higher than the N1.386bn reported in the prior half-year, with loans and advances rising to N403.371bn from N372.088bn. Total liabilities for the period fell from N1.2tr to N1.162tr, with customer deposits climbing marginally from N753.642bn to N767.372bn.