In the financial report filed with the Nigerian Exchange Limited after a delay which the lender said was due to it seeking approval of its primary regulator, the Central Bank of Nigeria.
Stanbic reported that the Group’s gross earnings increased by 58.18 per cent, profit before tax increased by 107.58 per cent and profit after tax increased by 121.46 per cent for the period ended 30 June 2023.
The directors’ recommended the approval of an interim dividend of 150 kobo per share (30 June 2022: 150 kobo per share) for the period under review.
The positive results of the financial group were on the back of appreciation in its Net Interest Income which rose by 44.35 per cent to N72.684bn from N50.353bn in 2022 as well as a 56.64 per cent increase in its non-interest revenue which rose by 56.64 per cent to N98.618bn from N62.957bn.
Net impairment loss on financial assets witnessed a marginal rise from N5.467bn to N5.979bn, marking a 9.37 per cent rise. Total assets increased by 47 per cent to N4.45tn (December 2022: N3.03tn and Gross loans and advances up 37 per cent to N1.70tn (December 2022: N1.24tn).
Commenting on the results, the Chief Executive Stanbic IBTC, Dr Demola Sogunle, said, “The first half of 2023 was an eventful one for us as an organisation within the Nigerian operating environment. Events such as the general elections and cash scarcity led to relatively slower business activities at the beginning of the year, causing the Stanbic IBTC Bank Purchasing Manager Index to print below 50 index points.
“Business activities, however, picked up in the second quarter, with the PMI moving back above 50 points in April 2023 and closing at 53.2 in June 2023, following the improvement in access to cash, increase in customer demand and business expansion. We reported significant growth in our key income lines during the period under review.
“The Group’s profitability increased by over 100 per cent year-on-year (driven by growth across our revenue streams. Interest income grew by 62 per cent YoY, mainly due to higher yield and volume of loans and investments, which is in line with our efforts to support our clients through loan offerings and investment opportunities.”
Sogunle added that Stanbic IBTC Bank processed the first inbound commercial transaction on the Pan African Payment and Settlement System in Nigeria. PAPSS is an initiative of the African Union and the African Continental Free Trade Area Secretariat, designed to promote intra-African trade and economic integration.
He said, “This demonstrates our efforts to provide our clients with efficient and secure payment and settlement solutions across Africa. We will continue to leverage our expertise to provide solutions that enable our clients to unlock the full potential of the African market.”
