THISDAY

Standard Bank Increases Equity Stake in Stanbic IBTC to 64.4%

- Goddy Egene

The Standard Bank Group Limited of South Africa has increased its equity stake in Stanbic IBTC Holdings Plc from 53.09 per cent to 64.44 per cent. In a notificati­on to the Nigerian Stock Exchange (NSE) yesterday, Stanbic IBTC Holdings said the increase came through the acquisitio­n of additional 1.142 billion shares in an off- market transactio­n. Standard Bank Group did the deal through its wholly owned subsidiary, Stanbic Africa Holdings Limited.

“With this acquisitio­n, the total percentage shareholdi­ng of Stanbic Africa Holdings Limited in Stanbic IBTC has increased by 11.35 per cent from 53.09 per cent to 64.44 per cent post this transactio­n,” the company said.

Market operators said the increase by the South African banking group is a sign of confidence in Stanbic IBTC Holdings in particular and the Nigerian economy in general.

But shares of Stanbic IBTC Holdings fell 2.9 per cent yesterday to close at N46.10.

Stanbic IBTC Holdings Plc ended the 2017 financial year with a jump of 70 per cent in profit after tax (PAT) to N48.381 billion, from N28.520 billion in 2016, while a dividend of 50 kobo per share was proposed

According to the Chief Executive, Stanbic IBTC Holdings Plc, Yinka Sanni, the strong performanc­e was evidence of the positive outcome of the group’s strategy of growing the client base across target and key market segments while maintainin­g a principled credit process.

“The Group reported its best profitabil­ity results since inception. We achieved a 70 per cent growth in profit after tax amid healthy capital and liquidity levels. Our balance sheet grew by 32 per cent to N1.39 trillion and this was funded mainly by customer deposit growth of 34 per cent,” Sanni stated.

He noted that the various business divisions achieved strong operating results as well as retained market leadership across the various businesses such as global markets, investment banking, pension, stockbroki­ng, asset management, and custodial services, with several accolades received during the year.

Looking ahead, Sanni said the Group remains optimistic that it will sustain the improved financial performanc­e in 2018 and beyond.

“While we are encouraged by the impressive results, we remain focused on improving risk asset quality, managing our cost base, maintainin­g our capital strength and increasing our returns to shareholde­rs. We are positive that the Group will benefit from a more stable macroecono­mic environmen­t to drive growth in lending and other business activities,” he said.

Newspapers in English

Newspapers from Nigeria