Stanbic IBTC posts 43% profit growth in Q1
Stanbic IBTC Holdings Plc’s unaudited results for the first quarter of 2018 has indicated a growth of 44 per cent in post-tax profit.
The Chief Executive of the bank, Yinka Sanni made this revelation while presenting the company’s first quarter report to the Nigerian Stock Exchange. The result also indicated that profit after tax increased to N23.1 billion, from the N16.1 billion posted in the corresponding period of 2017.
The report equally showed that Profit before tax grew from N18.6 billion to N26.7 billion, an increase of 43 per cent over the corresponding period of 2017. The bank’ s gross earnings during the period grew by 22 per cent to N57.4 billion against N47 billion recorded in the comparable period of 2016, while total assets went up to N1.41 trillion from N1.39 trillion in December 2017.
The Chief Executive of the bank, Yinka Sanni, said the performance was an affirmation of the group’s growth aspirations.
“Stanbic IBTC delivered strong results in the first quarter of 2018 in demonstration of its growth aspirations as the country’s economic environment continues to improve.
“The 22 percent growth in gross earnings was driven by 38 percent increase in non-interest revenue while net interest income remained stable year-on-year.
“The growth in non-interest revenue was driven by a significant growth in trading income and fee and commission revenue.
“There was a 22 percent growth in trading assets, though this only resulted in a muted 1.4 percent growth in total assets. Deposits were up by three percent mainly via current-and-savings-accounts.
“Consequently, our CASA ratio improved to 52.6 percent from 49.2 percent in December 2017 in line with the drive to reduce cost of funds through the generation of cheaper deposits.
“Loans and advances declined due to net repayments and slowdown in demand for loans in line with the market, while our capital and liquidity positions remained solid,” he said.
Sanni added that each business line reported better performance when compared to the corresponding quarter of 2017 and would expect even higher performance going forward.
“We expect that our risk asset position will improve with particular focus on the export sectors, including agriculture, even as macro-economic fundamentals improve to drive lending.“We will continue to dedicate efforts in growing our client base through excellent service delivery in our quest to remain the leading end-to-end financial solutions provider in Nigeria.
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