Stanbic IBTC, a member of Standard Bank Group, has recorded gross earnings of N97.198 billion for the six months audited results for the period ended 30 June 2017, an increase of 36.28 per cent.
This was against the N71.320 billion recorded in the corresponding period of last year.
According to the result, which was filed to the Nigerian Stock Exchange, the bank’s profit before tax showed an increase of 86 per cent, to N29.169 billion during the period, from N15.682 billion last year.
Profit after tax stood at 113 per cent to N24.112 billion compared to N11.317 billion in the corresponding period of 2016. Total assets went up by 21 per cent to N1.273 trillion, from N1.053 trillion in December 2016.
Chief Executive Officer, Stanbic IBTC, Mr. Yinka Sanni, 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 47.0 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 will moderate towards the end of 2017.”
Sanni noted that the group would continue to explore opportunities to grow itsbusiness and market share responsibly through the adoption of an appropriate risk appetite and excellent service
delivery.
The group’s 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
are well 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 stood at 90.37 per cent at the end of H1 2017. This ratio is significantly higher than the 30 per cent regulatory
minimum.
