Stanbic IBTC Holdings Plc released its half-year 2023 financial report, which showed a 121.46 percent increase in Profit After Tax to N67.919bn from N30,669bn for the same period in 2022.
The Punch reported that the financial report was filed with the Nigerian Exchange Limited following a delay caused by the lender seeking approval from its primary regulator, the Central Bank of Nigeria.
Stanbic said that for the fiscal year ended 30 June 2023, the Group’s gross earnings climbed by 58.18%, profit before tax increased by 107.58%, and profit after tax increased by 121.46%.
The board of directors proposed that an interim dividend of 150 kobo per share be paid for the period under consideration (30 June 2022: 150 kobo per share).
The banking group’s good results were driven by an increase in Net Interest Income, which increased by 44.35 percent to N72.684 billion from N50.353 billion in 2022, as well as a 56.64 percent growth in non-interest income, which increased by 56.64 percent to N98.618 billion from N62.957 billion.
Net impairment loss on financial assets increased somewhat from N5.467bn to N5.979bn, representing a 9.37% increase. Total assets increased by 47% to N4.45 trillion (December 2022: N3.03 trillion), and gross loans and advances climbed by 37% to N1.70 trillion (December 2022: N1.24 trillion).
The Chief Executive Officer of Stanbic IBTC, Dr Demola Sogunle, commented on the results, saying, “The first half of 2023 was an eventful one for us as an organization within the Nigerian operating environment.
“General elections and cash shortages slowed company activity at the start of the year, causing the Stanbic IBTC Bank Purchasing Manager Index to fall below 50 index points.
“However, business activity picked up in the second quarter, with the PMI returning above 50 points in April 2023 and closing at 53.2 in June 2023, owing to improved access to cash, increased customer demand, and business expansion. During the period under review, we saw a strong increase in our major revenue streams.”
“The Group’s profitability increased by more than 100% year on year (due to growth across all revenue streams).” Interest income increased by 62% year on year, owing mostly to higher yield and volume of loans and investments, which is consistent with our efforts to support our clients through loan offerings and investment options.”
Sogunle further stated that Stanbic IBTC Bank handled Nigeria’s first inbound commercial transaction on the Pan African Payment and Settlement System.
PAPSS is an African Union and African Continental Free Trade Area Secretariat program aimed at promoting intra-African trade and economic integration.
“This demonstrates our efforts to provide efficient and secure payment and settlement solutions to our clients throughout Africa,” he said. We will continue to harness our knowledge to deliver solutions that allow our clients to fully realize the African market’s potential.”
