Stanbic IBTC Holdings, a member of Standard Bank Group, on Thursday reported 59 per cent growth in profit after tax for the nine months ended Sept. 30, 2018.
The bank in its unaudited nine months results submitted to the Nigerian Stock Exchange (NSE) posted profit after tax of N59.76 billion against N37.67 billion achieved in the corresponding period of 2017.
Its profit before tax stood at N70.38 billion, up by 54 per cent against N45.65 billion in the preceding period of 2017.
Also, gross earnings grew by nine per cent to N168.80 billion, in contrast with N154.22 billion in third quarter of 2017.
Net interest income was down by seven per cent to N58.44 billion against N62.95 billion in 2017 preceding period.
However, non-interest revenue stood at N79.97 billion against N64.28 billion, representing an increase of 24 per cent in September 2017.
Its non-performing loans decreased by 39 per cent to N21.6 billion compared with N35. 3 billion in December 2017.
Commenting on the group’s performance, Mr Yinka Sanni, Chief Executive Officer, Stanbic IBTC Holdings, said that its business continued to thrive in the third quarter of 2018 amid industry-wide headwinds.
Sanni said that the industry-wide headwinds included bearish capital market aided by emerging market sell-off and attendant repatriation of foreign capital.
He said the company’s performance showed steady growth in balance sheet position, sustained improvement in revenue from fees and commissions and trading lines.
Sanni said the performance, although at a slower pace, was against a backdrop of reduced financial market volumes / trades and reduction in fee income rate, particularly for wealth business due to the implementation of the multi-fund structure.
“The decrease in non-performing loans is on account of the declassification of some loans following positive outcome on recovery and rehabilitation efforts,” he said.
Sanni explained that drop in non-performing loans was the company’s strategic decision to write-off some delinquent loans.
“We are focused on delivering end-to-end financial solutions to our customers through our enhanced digital platforms as significant investment is being made to achieve this stride.
“Volume of transactions carried out on our digital platform continues to increase and we are encouraged by the robust transactional volumes from the various platforms.
“The drop in our net interest income is due to lower yield on government securities compared to the same period in 2017 but the sustained growth in loans and advances will douse the impact on net interest income line in the near term.
“We remain on track to achieve our guidance by the end of the year.
“Our focus for the rest of the year is to maintain the momentum in improving the quality of the asset book and to further grow our non-interest revenue line.”