Stanbic IBTC Records 51% Profit Growth to N19 Billion

Stanbic IBTC Holdings Plc has become the fourth bank to announce its audited results for the full year ended December 31, 2016. The financial institution recorded improvement in most of the performance indicators and ended with a growth of 51 per cent in profit after tax(PAT).

According to the results, Stanbic IBTC Holdings Plc recorded gross earnings of N156.425 billion in 2016, showing a growth of 12 per cent compared with N140 billion in 2015. Net interest income rose by 31 per cent from N43.86 billion to N57.85 billion, while income before credit impairment stood at N124.05 billion, up from N100.6 billion in 2015.

However, credit impairment charges rose by 33 per cent to N19.803 billion, from N14.93 billion. Operating expenses rose by 11.2 per cent to N69 billion, from N62 billion.

Despite the higher impairment charges, Stanbic IBTC Holdings ended the year with significant growth in profit before tax, which rose by 57 from N23.65 billion to N37.209 billion. Similarly, PAT rose by 51 per cent from N18.891 billion to N28.52 billion. The board of directors has recommended a dividend of five kobo per share.

Analysing the fourth quarter (Q4) results, analysts at FBN Quest said the performance was boosted by a significant other comprehensive income(OCI) of N4 billion compared with a loss of N87 million prior year.

“Returning to the PBT, the growth was driven by a marked growth of 72 per cent in net interest income: interest income grew 31 per cent while interest expense fell 17 per cent. This positive result more than compensated for a weak non-interest income out turn , as well as increases in provisions (+85 per cent) and operating expenses (+15 per cent). Sequentially, although the PBT grew only four per cent, PAT grew much faster, by 87 per cent q/q because of the OCI gain. Relative to our forecasts, both PBT and PAT were ahead strongly, the latter on the back of the OCI result for which we forecasted zero. The better-than-expected PBT result was driven by several factors, of which the most significant was the strong net interest income result. This beat our forecast by 28 per cent,” they said.

According to FBN Quest, the Stanbic IBTC has not hosted a conference call since 2015 due to the delay in the publication of several quarterly results until recently, as a result of a dispute with the Financial Reporting Council of Nigeria, which has been resolved.