Stanbic IBTC Holdings Plc, a member of Standard Bank Group, has reported a profit after tax at N24.112bn for the 2017 half year, which represents a growth of 113 per cent compared to N11.317bn recorded in the corresponding period of 2016.
For the period ended 30 June, 2017, it reported gross earnings of N97.198bn, an increase of 36.28 per cent over the N71.320bn posted in the corresponding period of last year.
The result, which was submitted to the Nigerian Stock Exchange in Lagos on Tuesday, showed that profit before tax increased by 86 per cent to N29.169bn during the period, from N15.682bn last year. Its total assets went up by 21 per cent to N1.273tn from N1.053tn in December 2016.
Yinka Sanni, Chief Executive Officer, Stanbic IBTC Holdings Plc, said, “The domestic environment in the first half of 2017 recorded a decline in headline inflation, improved foreign exchange liquidity and a gradual economic expansion as measured by the Purchasing Managers’ Index. The improved operating environment positively impacted our businesses leading to significant improvement in our financial results.”
Sanni added, “Income before impairment charges grew by 43 per cent, driven by a sustained growth in yields from investment securities and trading activities. Interest income increased by 55 per cent and trading revenue grew by 81 per cent, positively impacting profit after tax which increased by 113 per cent year-on-year.
“The balance sheet grew by 21 per cent year-to-date as trading assets and financial investments increased by over 100 per cent and 19 per cent, respectively. Our cost-to-income ratio continued to witness improvement, standing at 47 per cent at the end of H1 2017 when compared with 57.7 per cent in H1 2016. The growth in non-performing loan ratio is on account of some newly classified loans in line with economic realities. We are optimistic that this would moderate towards the end of 2017.”
According to him, the group will continue to explore opportunities to grow its business and market share responsibly through the adoption of an appropriate risk appetite and excellent service delivery.
The group, he explained, maintained adequate capital to support its business and drive business growth in H1 2017, adding that its total capital adequacy ratio at the close of the period was 22.9 per cent (bank: 20.2 per cent) and tier 1 capital adequacy ratio of 19.2 per cent (bank: 16.1 per cent).
These ratios, it noted, were above the 10 per cent minimum statutory requirement. The group’s liquidity ratio closed at 100.24 per cent, while the bank’s liquidity ratio was at 90.37 per cent at the end of H1 2017; and according to the bank, the ratio is significantly higher than the 30 per cent regulatory minimum.