Stanbic IBTC Records Profit Surge Of 121% In H1 2023

Dr. Demola Sogunle, Chief Executive, Stanbic IBTC Holdings PLC

Stanbic IBTC Holdings PLC, a member of Standard Bank Group, has released its audited financial results for the first half of 2023 which marks a remarkable surge in profit and key financial metrics.

The bank recorded a Profit Before Tax (PBT) of ₦82.99 billion, up 108% from the PBT recorded in the same period for 2022 while the Profit After Tax (PAT) of ₦67.92 billion was achieved, up 121% for the same period in 2022.

The company’s net interest income also rose by 44%, amounting to ₦72.68 billion while its non-interest revenue surged by an impressive 57%, reaching ₦98.62 billion.

The initial months of 2023 were dominated by significant incidents like the general elections and cash scarcity, which temporarily impacted business activities. However, the tide turned in the second quarter as business activities gained momentum.

The Stanbic IBTC Bank Purchasing Manager Index (PMI) rebounded, surpassing the 50-point mark in April 2023, to close at 53.2 in June 2023, indicating positive economic trends.

Speaking on the massive performance, Dr. Demola Sogunle, Chief Executive, Stanbic IBTC, said; “The first half of 2023 was an eventful one for us as an organisation within the Nigerian operating environment…we reported significant growth in our key income lines during the period under review.”

“The Group’s profitability increased by over 100% year-on-year (YoY), driven by growth across our revenue streams. Interest income grew by 62% YoY, mainly due to higher yield and volume of loans and investments, which aligns with our efforts to support our clients through loan offerings and investment opportunities.”

According to him; “Stanbic IBTC Bank successfully processed the first inbound commercial transaction on the Pan African Payment and Settlement System (PAPSS) in Nigeria, an initiative of the African Union and the African Continental Free Trade Area (AfCFTA) Secretariat, designed to promote intra-African trade and economic integration. This demonstrates our efforts to provide our clients with efficient, 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.”

The company’s diverse income streams underscore its resilience and adaptability. Interest income grew by 62% year-on-year, buoyed by higher yields and loan volumes. Net fees and commission income increased by 12%, attributable to growing fees from digital banking transactions and letters of credit. The sustained growth in trading income was attributed to improved foreign exchange (FX) trading activities and FX revaluation gains.

The company’s financial position saw significant strengthening, evident in key metrics such as total assets, gross loans and advances, and customer deposits. Total assets increased by 47% to ₦4.45 trillion, while gross loans and advances surged by 37% to ₦1.70 trillion. Customer deposits reached ₦1.64 trillion, marking a growth of 32%.

In his remarks, Demola affirmed the company’s dedication to delivering on its 2023 guidance and continuing to provide solutions that unlock the potential of the African market.

Leave A Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.