Stanbic IBTC Holdings, a member of Standard Bank Group, has announced its nine months unaudited results for the period ended 30 September 2016.
Financial highlights from the Income Statement of the company showed Gross earnings of N114.6 billion, an increase of 10 percent compared to N104.4 billion posted for September 2015.
Net interest income stood at N39.1 billion, representing an increase of 19 percent from N32.9 billion recorded in the same period of last year. The group realized Non-interest revenue of N52.9 billion, this increased 28 percent from N41.3 billion, while Total operating income grew 24 percent to N91.9 billion, from N74.3 billion. The group recorded a 10 percent increase in operating expenses which stood at N51.0 billion for the review period, from N46.4 billion posted for September 2015.
The unaudited results thus showcased a robust bottom line as Profit before tax grew by 67 percent to of N25.7 billion, from N15.4 billion in the prior nine month period, while Profit after tax of N20.2 billion, grew by 49 percent from N13.6 billion recorded previously.
Ratio Analysis made available by the company showed that Cost-to-income ratio stood at 55.5 percent compared to September 2015 rate of 62.5 percent. Return on average equity (annualized) was pegged at17.8 percent as against 13.2 percent last year, while Return on average assets (annualized) stood at 2.6 percent compared to 1.9 percent recorded previously.
Stanbic’s Balance sheet showed that Total assets were up 22 percent to N1.1 trillion compared to N937.6 billion recorded in December 2015. Gross loans & advances to customers grew 3 percent to N392.5 billion in contrast to N379.4 billion in December 2015 as Customer deposits, soared 23 percent to N606.1 billion from N493.5 billion recorded in December 2015.
The ratio of Non-performing loans to total loans stood at 10.2 percent in comparison to 8.5 percent recorded December 2015. The group noted that the ratio was calculated based on CBN prudential guidelines Capital and liquidity. The group also maintained adequate capital which was well above regulatory requirements in 9M 2016. The group’s total capital adequacy ratio closed the period at 21.0 percent (Bank 15.8 percent), while the tier 1 capital adequacy ratio stood at 16.7 percent (Bank 11.8 percent), showing they are well above the 10 percent minimum statutory requirement.
The group’s liquidity ratio stood at 78.0 percent, while the Bank’s liquidity ratio was at 76.1 percent at the end of the nine-month period (9M) of 2016. This ratio is significantly higher than the 30 percent regulatory minimum.
Speaking from the Group’s headquarters in Lagos, Sola David-Borha, CE Stanbic IBTC Holdings, said: “Our business has shown resilience in 2016 despite the challenging operating environment.
Our performance shows increased revenue from fees and commission, improved funding cost as evidenced by 26 percent reduction in interest expense and continued to drive on cost containment measures which ensured that cost growth remained below the inflation rate.
Operating income and profit after tax grew by 24 percent and 49 percent respectively. Loans and advances to customers grew marginally by 1 percent due to economic conditions and our focused approach to maintaining good quality loan book. Customer deposits grew by 23 percent during the period, with a larger portion of the growth in current and savings deposits, as we maintain the focus of reducing the cost of funds.
Despite the economic condition, we will continue to deliver exceptional service and value to our customers, whilst remaining profitable and improve margins.”