The management of Stanbic IBTC Holding gave stakeholders reason to cheer on Monday, when it presented the unaudited report for the first quarter ended March 31, 2017, which showed that profit after tax rose significantly faster than earnings, raising hopes that should this be sustained for the remaining three quarters of the year, shareholders are in for a much more robust dividend payout.
Gross earnings rose by N12.242bn or 35.19% to N47.022bn from N34.78bn; out of which interest income stood at N26.841bn, helped by interest on loans and advances to customers, which rose to N13.555bn from N13.551bn and interest on investments of N12.873bn, up from N3.9222bn.
Interest expense rose slightly to N7.961bn from N7.126bn, the bulk of which was the N4.428bn on term deposits from N4.645bn; and N1.857bn on borrowed funds from N1.113bn. Net interest income for the period rose by N8.33bn or 78.95% from N10.55bn to N18.88bn.
Non-interest revenue rose from N16.938bn to N20.106bn, as net fee and commission revenue dropped slightly from N14.184bn to N13.194bn; trading revenue rose to N6.651bn from N2.635bn; just as other revenue increased slightly to N261m from N119m. Total income for the period therefore stood at N38.986bn from N27.488m; while credit impairment charges rose to N3.327bn from N2.269bn.
Operating expenses rose from N14.976bn to N17.033bn; comprising staff costs of N7.234bn, compared to the previous N7.217bn and other operating expenses of N9.799bn, compared with N7.759bn in the corresponding first quarter of 2016.
These left profit before tax at N18.626bn from N10.243bn; while income tax rose slightly from N2.452bn to N2.552bn; leaving profit for the period at N16.074bn, a growth of N8.283bn or 106.31% from N7.791bn. The net profit represented earnings per share of 155 kobo from 68 kobo.