Stanbic IBTC Holdings: Impressive performance amid inflationary pressure

By Philemon Adedeji

Despite nume rous challenges in banking sector, Stanbic IBTC delivered an impressive performance for the half year audited financial results ended June 30, 2022. The group recorded profitability across all key parameters most significantly profit before tax that largely increased.

The profitability ratios for the period emerged stronger over the prior-year results as return on assets  and profit margin increased further.

For the half year audited results, Stanbic IBTC recorded more sales in half year (H1) 2022 than the Sales recorded in half year (H1) 2021 such better sale can be translated to better profit.

In the period under review, Stanbic IBTC, declared a significant increase in gross earnings, among other financial parameters to deliver double digit growth in profits.

For its audited half year ended June 30, 2022, group reported 43.93 per cent growth in gross earnings to N133.704 billion in half year H1 2022 from N92.895 billion recorded in half year H1 2021.

It is worth noting that this 43.93 per cent growth in gross earnings is a very good performance when compared with the bank average for the same period under review.

Amid growth in profits, the management of Stanbic IBTC Holdings declared interim dividend of  N1.50 per ordinary share of 50 kobo each, that is, N19.44billion, and it subject to deduction of appropriate withholding tax and regulatory approval.

Stanbic IBTC Holdings  announced N30.67 billion Profit After Tax (PAT) in its audited half year ended June 30, 2022, representing an increase of 36 per cent from N22.54billion reported in half year ended June 30, 2021.

The group on the floor of the Nigerian Exchange Limited (NGX) reported N39.98billion Profit Before Tax (PBT) in H1 2022 from N24.71billion reported in H1 2021.

The impressive performance in profits was driven by significant increase in net interest income and non-interest income.

Stanbic IBTC Holdings reported N50.35billion net interest income in H1 2022, representing an increase of 53 per cent from N32.88 billion in H1 2021, while non-interest revenue stood at N62.96 billion in H1 2022, up by 37 per cent from N45.91 billion reported in H1 2021.

As net fee and commission moved slightly to N2.635 billion in H1 2022 from N2.626 billion in H1 2021, a bit increase of 0.34 per cent.

Earnings per share recorded for the period stood at 226 kobo in half year 2022 from 92 kobo recorded in H1 2021, representing an increase of 17.7 per cent.

The Group reported a total assets of N3.15trillion as of June 30, 2022, an increase of 15 per cent from N2.74 trillion reported in full year ended December 31, 2021, driven by sharp increase in gross loans and advances and customer deposits.

Total liabilities deployed by the group for 2022 half year grew to N2.770 trillion, 17.1 per cent higher than N2.365 trillion liabilities deployed in 2021 FY.

For the under review, Stanbic IBTC Holdings announced a gross loans and advances of N1.09 trillion as of June 30, 2022, an increase of 16 per cent from N946.26 billion reported in 2021 FY, while customer deposits increased by six per cent to N1.19 trillion as of June 30, 2022 from N1.13 trillion reported in 2021 FY.

PROFITABILITY RATIO

From the analysis, it was revealed that Stanbic IBTC recorded profitability for the half year 2022.However when compared to its previous year results almost all the parameters showed an impression. The group profit margin appreciated by 29.9 per cent in H1 2022 from 26.6 per cent in H1 2021, this simply means for every N100 earned by the group in the course of the year, N29.90 of it can be translated into profit higher than N26.60 in the half year 2021.

Also, Return on Assets inched up by 1.3 per cent in H1 2022 from 0.90 per cent recorded in H1 2021. Analysis showed that for every N100 worth of assets employed by the the group in the course of 2022 could only contribute N1.30  to the Profit Before Tax (PBT) higher than N0.90 in 2021 FY.

Commenting on the results, Chief Executive Stanbic IBTC Holdings, Dr Demola Sogunle in a statement said, “Despite the challenges we faced within the Nigerian operating environment in the first half of the year, we reported significant growth in our key metrics.

“Following our return to growth trajectory in the first quarter, the Group’s profitability increased by 36 per cent year-on-year (YoY) driven by growth across our revenue streams, amid increased operating expenses.

“Our continued focus on the core of our business which is to grow our loan and deposit books, led to a 54 per cent growth in interest income year-on-year.”

He added that “Aligning with our commitment towards delivering to our shareholders, an interim dividend of N1.50 has been declared.

“We are on track in the achievement of the guidance we provided for the year following the progress we have witnessed based on our H1 2022 results.”