Stanbic IBTC Holdings Plc grew its net profit to N67.92 billion in its audited financial results for the first half of 2023.
The Holding company results for the period ended June 30, 2023 showed a remarkable surge in profitability and key financial metrics. Also, the management of the company proposed an interim dividend of 1.50 per ordinary share of 50 kobo each, amounting to N19.435 billion.
In the first half of 2023, Stanbic IBTC recorded profit before tax of N82.99 billion, up 108 per cent from N40 billion recorded in the same period for 2022. Profit after tax stood at N67.92 billion in the first half of 2023, up 121 per cent as against N30.7 billion in 2022.
Driven by robust growth across its revenue streams, the company’s net interest income rose by 44 per cent, amounting to N72.68 billion. Additionally, non-interest revenue surged by an impressive 57 per cent, reaching N98.62 billion.
Speaking on the company’ performance, 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. 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 (YoY), 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 aligns with our efforts to support our clients through loan offerings and investment opportunities.”
Demola assured that the organisation will continue supporting its clients’ growth by providing solutions that aid their expansion.
According to him, “Stanbic IBTC Bank successfully processed the first inbound commercial transaction on the Pan African Payment and Settlement System (PAPSS) in Nigeria, an initiative of the African Union and the African Continental Free Trade Area (AfCFTA) Secretariat, designed to promote intra-African trade and economic integration. This demonstrates our efforts to provide our clients with efficient, secure payment and settlement solutions across Africa.”
The company’s diverse income streams underscore its resilience and adaptability. Interest income grew by 62 per cent year-on-year, buoyed by higher yields and loan volumes.
Net fees and commission income increased by 12 per cent, attributable to growing fees from digital banking transactions and letters of credit.
The sustained growth in trading income was attributed to improved foreign exchange (FX) trading activities and FX revaluation gains.
The company’s financial position saw significant strengthening, evident in key metrics such as total assets, gross loans and advances, and customer deposits. Total assets increased by 47 per cent to N4.45 trillion, while gross loans and advances surged by 37 per cent to N1.70 trillion. Customer deposits reached N1.64 trillion, marking a growth of 32 per cent.
Demola expressed optimism regarding the company’s performance for the rest of the year, affirming the company’s dedication to delivering on its 2023 guidance and continuing to provide solutions that unlock the potential of the African market.
