Stanbic IBTC Holdings has said its profit after tax grew by 17 per cent to N43.08bn in the first half of the year from N24.11bn in the same period of 2017.
The firm’s gross earnings, which stood at N97.20bn last year, surged to N114.21bn this year.
Its profit before tax rose by 74 per cent to N50.73bn from N29.17bn in the corresponding period of 2017, while total assets stood at N1.37tn in June 2018 as against N1.39tn in December 2017.
The Chief Executive Officer, Stanbic IBTC Holdings Plc, Yinka Sanni, was quoted in a statement as saying, “The operating environment in the first half of the year was characterised by rising oil prices, stable oil production level leading to accretion to the country’s external reserves, improved foreign exchange liquidity with attendant interventions from the Central Bank of Nigeria and moderating inflation amid declining yields on money market securities.
“Stanbic IBTC continued to deliver stellar performance over the course of the first half of the year. Profit before tax grew to N50.73bn, representing a 74 per cent growth from prior year on the back of non-interest revenue growth and recoveries from delinquent assets previously impaired. Our credit impairment line has a write back of N5.5bn as at June 2018 as we continue to intensify recovery efforts on previously classified loans.”
He said the group’s interest income increased by six per cent to N59.9bn predominantly driven by loan growth.
Sanni said, “This was offset by increase in interest expense of 26 per cent as a result of interest paid on maturing term deposits and other borrowings. We are making good progress on our drive to reduce cost of funds which has reduced by more than 100 basis points, manifesting in a 15 per cent reduction in interest cost between Q1 2018 and Q2 2018.
“We have seen significant growth in transaction volumes across our digital platforms. The volume of transactions via our mobile banking, SME internet banking, USSD platforms and ATMs have increased by over 100 percent each year-on-year as we continued to drive non-interest income growth. Also, we kicked off the initial stage of implementing a virtual banking proposition.
“Our Africa-China Banking Centre was recently launched and it aims to provide bespoke solutions and address the needs of business communities in both Nigeria and China while leveraging our relationship with Standard Bank and the Industrial & Commercial Bank of China.”
Sanni said the group remained focused on driving long-term value for its clients and shareholders through its balanced and diversified business model, while thanking the various stakeholders for their contributions and support towards the achievement of the half-year results.