Stanbic IBTC Holdings reports 51% growth in profit, declares N0.05 dividend

Stanbic IBTC Plc has reported a profit of N28.5 billion in 2016, 51 per cent increase over N18.9 billion recorded in 2015.
The Holding company in its 2016 financial year result and accounts to Nigerian Stock Exchange (NSE) said profit before tax gained 57 per cent to N37.2 billion as against N23.7 billion last year.
With impressive performance, the management of Stanbic IBTC has announced N0.05 kobo dividend to shareholders payable three days of its Annual General Meeting (AGM) in April this year.
For the year under review, Stanbic Bank Holdings gross earnings moved to N46.4 billion, up 12 per cent from N41.6 billion in 2015 while Total assets increased by 12 per cent to N1, 053.5 billion from N937.6 billion recorded in 2015.
In a statement obtained by our correspondent, Chief Executive Stanbic IBTC Holdings Plc, Yinka Sanni, said, “The difficult economic environment occasioned by the collapse in global crude oil prices in 2015 continued during the year. The economy as a result fell into recession for the time in over a 25 year period. This impacted negatively on the operating environment, resulting in the Central Bank of Nigeria making a number of policy changes to maintain stability in the financial system.
“The group’s performance showed resilience over the year. We recorded a 51per cent growth in profit after tax and kept year-on-year cost growth below average inflation of 16per cent.
“Our balance sheet grew by 12per cent to N1.1 trillion and this was funded mainly by deposit growth of 14per cent, with current and savings account ratio improving to 57per cent. The customer loan book declined marginally by one per cent due to a cautious approach adopted to lending.
“Asset quality improved as ratio of non-performing loans to total loans reduced to 6.4per cent from 8.5per cent in 2015. “As a result of the difficult credit impairment environment which is a reflection of the overall performance of the economy, we witnessed an increase in credit loss ratios from 3.8per cent in prior year to 5.2per cent during the year.
“Stanbic IBTC Holdings remains confident about the prospects of our business going forward. We are confident we can continue to deliver exceptional value to our customers in the coming year by improving service experience in our channels and providing innovative solutions to meet their financing requirements.”
Corporate and investment banking provide services to larger corporates, financial institutions and international counterparties): Gross earnings of N78.0 billion up nine per cent to N71.8 billion in 2015.
Commenting on the performance, Chief Executive Stanbic IBTC Bank, Demola Sogunle, said: “The weak macroeconomic environment characterised by illiquidity in the foreign currency markets, and low crude oil price impacted negatively on the CIB business. Despite the economic challenges, the business continued to maintain market leadership in various segments. Our stockbroking and global market businesses remained market leaders in their areas of operation reflecting our commitment to always deliver superior banking services to our customers. Operating income for the period grew by 12per cent to N49.5 billion (2015: N44.2 billion). This growth was driven by a 25per cent increase in net interest income and two per cent growth in non-interest revenue. On the other hand, credit impairments increased by 26per cent as we increased provisions on a number of delinquent facilities.
He explained further: “Deposits from customers declined by 14 per cent as we paid off expensive wholesale funds taken in previous year.
“Loans and advances to customers increased by three per cent on the back of challenges in the operating environment and delays by customers in retooling their operations. We will continue to focus on our key areas of strength as we position the business for an expected positive turnaround in the economy.”
Further analysis from the report shows gross loans & advances down by one per cent to N375.3 billion from N379.4 billion in 2015 while Non-performing loans decreased by 25per cent to N24.0 billion compared with N32.2 billion in 2015.