Stanbic IBTC Grows Half-year Net Profit By 36%, Offers N19.43bn Interim Dividend

The board of Stanbic IBTC Holdings Plc, on Tuesday, submitted its audited financials for the half-year ended June 30, 2022, showing strong growth in earnings and profit, despite a triple-digit growth in tax expense. The highpoint of the score-card is the recommended cumulative interim dividend of N19.435bn payable to shareholders whose names appear on the register of members as of Tuesday, September 6, 2022, while electronic payment is scheduled for September 23.

According to the result, gross earnings stood at N134.87bn, better than the previous half-year’s N92.895bn by N40.899bn or 44.02%; with interest income growing from N44.229bn to N68.248bn; buoyed by the N51.661bn earned in interest on loans and advances to customers, up from N34.211bn; just as interest on investments jumped from N9.64bn ton N16.202. Interest expense increased from N11.35bn to N17.895bn, the bulk of which term deposits grew significantly from N1.958bn to N7.361bn; and borrowed funds which increased from N5.485bn in the first half of 2021 to N6.81bn. This resulted in a net interest income of N50.355bn, up from N32.879bn in the previous half-year.

Fee and commission revenue for the period stood N48.198bn from N43.882bn; lead by asset management fees of N28.282bn from N27.176bn; fee and commission expense was flat at N2.635bn, compared to the previous N2.626bn; while net fee and commission revenue amounted to N45.6563bn from N41.256bn.

Insurance premium received soared from N215m in the first half of 2021, to N1.166bn; insurance premium revenue ceded to reinsurers increased from N61m to N403m; while insurance benefits and claims paid increased to N627m from N70m.

Trading revenue (fixed income and currencies) stood at N16.32bn from N5.473bn; net impairment loss on financial instruments jumped to N5.467bn, compared to the N1.284bn write-back in the prior half-year. Income after credit impairment charges, therefore rose to N107.843bn from N80.072bn.

With staff costs at N24.68bn, up from N20.2bn; and other operating expenses leaping to N43.185bn from N35.165bn, operating expenses rose from N55.365bn to N67.865bn.

Profit before tax improved from N24.707bn to N39.978bn; income tax charge soared by N7.145bn or 330.17% from N2.164bn to N9.309bn; resulting in a net profit of N30.669bn, up by N8.126bn or 36.04% from N22.543bn reported in the corresponding period of last year; translating to Earnings Per Share of N2.26, up from N1.92 each, from which the directors have proposed N1.50 as Interim Dividend per share, 50% improvement over the N1.00 paid in the same period of last year.

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