Economy
Stanbic IBTC Grows Profit to N83.2bn, Offers Dividend, Bonus Shares
By Dipo Olowookere
One of the financial institutions operating in Nigeria that is highly trusted by foreign investors, Stanbic IBTC Holdings Plc, has released its results for the 2020 accounting year.
In the period under review, the lender grew its gross earnings to N234.5 billion from N233.8 billion. However, the interest income reduced to N105.8 billion from N120.4 billion, while the interest expense was down to N31.6 billion from N42.6 billion.
Business Post observed that the decline in the interest income in the period under consideration was due to lower interest on loans and advances to banks, interest on loans and advances to customers and interest on investments.
At the close of business on December 31, 2020, Stanbic IBTC had a net interest income of N74.2 billion in contrast to N77.8 billion in 2019. However, its non-interest revenue rose to N124.7 billion from N108.8 billion.
The fee and commission revenue was slightly up to N75.2 billion from N75.0 billion, while the fee and commission expense reduced to N4.0 billion from N4.6 billion, with the net fee and commission income at N71.2 billion as against N70.4 billion in 2019.
Stanbic IBTC said in the reporting year, it had a trading revenue of N52.1 billion, higher than N36.3 billion a year earlier, while the other income went down to N1.4 billion from N2.0 billion.
The company said staff costs gulped N42.1 billion in 2020 compared with N40.6 billion in 2019, while N52.1 billion was used for other operating expenses versus N53.4 billion in 2019.
With N94.3 billion expended on operating costs in the year, marginally higher than N94.0 billion in 2019 and an income after credit impairment charges of N189.0 billion last year in contrast to N185.0 billion a year earlier, the lender was left with a profit before tax of N94.7 billion as against N90.9 billion in 2019.
After the payment of N11.5 billion as income tax for the year, lower than N15.9 billion paid in 2019, the organisation was left with a net profit of N83.2 billion, higher than N75.0 billion of the preceding year.
Meanwhile, the board of Stanbic IBTC has recommended the payment of a final dividend of N40.0 billion, representing N3.60 for each of the company’s shares with shareholders.
The amount would be paid to shareholders whose names appear on the register of members as at the close of business on Wednesday, April 7, 2021.
Also, the firm is proposing the issuance of bonus shares to investors on the basis of one new ordinary share for every six existing ordinary shares held by them as at the close of business on Thursday, June 10, 2021, though subject to shareholders and regulatory approvals.
On Thursday, May 27, 2021, the Annual General Meeting (AGM) of the company will take place at the IBTC Place on Walter Carrington Crescent, Victoria Island, Lagos, at 10.00am, while on Friday, May 28, 2021, the dividends will be paid electronically to shareholders who have completed the e-dividend registration and mandated the registrar, First Registrars & Investor Services Limited, to pay their dividends directly into their bank accounts.
By Adedapo Adesanya
The National Pension Commission (PenCom) has defended its decision to allow Pension Fund Administrators (PFAs) to invest in the parent companies of their custodians, insisting that adequate safeguards are in place to protect contributors’ funds.
The director-general of the pension regulator, Ms Omolola Oloworaran, speaking on Tuesday during the Meet the Press Briefing at the Presidential Villa, Abuja, said the commission’s decision to relax the investment restriction followed a comprehensive risk assessment that found minimal conflict of interest.
She explained that under PenCom’s investment regulations, PFAs are only permitted to invest pension assets in carefully selected instruments that meet stringent criteria, including profitability, strong credit ratings and proven track records.
According to her, the commission regularly reviews its investment regulations, conducts routine examinations and spot checks on PFAs to ensure strict compliance with established risk management guidelines.
“PFAs cannot just go into the stock market and buy any kind of stock. There are strict guidelines. Companies must demonstrate profitability, have a proven track record and satisfy other criteria before pension funds can invest,” she said.
Ms Oloworaran noted that each PFA also operates under the oversight of a board, an investment committee and a risk management committee, providing additional layers of governance to safeguard contributors’ funds.
She said PenCom recently issued a circular allowing PFAs to invest in the parent companies of their custodians after determining that the potential conflict of interest was negligible.
The PenCom boss explained that the parent companies involved are largely Tier-1 banks, including First Bank, United Bank for Africa (UBA) and Zenith Bank, which she described as A-rated institutions with strong financial foundations.
She said the policy was intended to widen investment opportunities for pension funds without compromising safety.
Using Stanbic IBTC as an example, Ms Oloworaran explained that if its custodian is Zenith Bank, the previous restriction prevented the pension administrator from investing in Zenith Bank shares despite the bank’s strong performance.
“We reviewed the risks and any potential conflict of interest and found the risks to be very low. That is why we opened that investment window,” she said.
By Aduragbemi Omiyale
Analysts at Meristem Research have predicted that the inflation rate for June 2026 in Nigeria should marginally rise to 15.95 per cent on a year-on-year basis from the 15.93 per cent reported in May 2026.
The National Bureau of Statistics (NBS) is expected to release inflation numbers for last month later today, Wednesday, July 15, 2026.
In its report sighted by Business Post, Meristem Research said it expects inflationary pressures to re-emerge across key economies in the near term, as the re-escalation of the US-Iran conflict has reignited upward pressure on global oil prices.
It disclosed that this marks a sharp reversal from most of June, when the ceasefire between the two countries helped drive oil prices lower, raising expectations of some relief on the inflation front.
With conflicts now flaring up again, oil prices are likely to increase again, and the anticipated easing in energy-driven inflation may not materialise as broadly as earlier envisaged.
“Nonetheless, some relief is likely from the food segment, where robust supply conditions across major producing regions and softening demand should continue to ease food price pressures,” it stated.
The team also explained that it projected a 15.95 per cent inflation rate because of the lingering effects of persistent food price pressures.
“However, we expect core inflation to moderate as the sharp reversal in energy prices begins to filter through to transportation, distribution, and other energy-related costs, easing underlying price pressures.
“On a month-on-month basis, the combined effect of lower petrol prices, a relatively stable Naira, and the gradual pass-through of reduced energy costs across the supply chain should exert further downward pressure on inflation.
“Based on our assessment, food inflation is expected to remain the key swing factor, as seasonal pre-harvest supply constraints are likely to offset some of the gains from lower logistics costs,” it said.
By Adedapo Adesanya
The duo of Central Securities Clearing System (CSCS) Plc and Afriland Properties Plc weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.61 per cent on Tuesday, July 14.
CSCS Plc saw its stock value drop N9.08 to close at N82.40 per share compared with the preceding session’s N91.48 per share, and Afriland Properties Plc slid by 17 Kobo to sell at N15.00 per unit versus N15.70 per unit.
The losses recorded by the two securities pulled back the market capitalisation by N41.64 billion to N2.546 trillion from N2.587 trillion, and cracked the NASD Security Index (NSI) by 69.36 points to 4,242.31 points from 4,311.67 points.
It was observed that the exchange witnessed two price advancers during the session, led by FrieslandCampina Wamco Nigeria Plc, which gained N1.37 to end at N151.37 per share compared with the previous day’s N150.00 per share, and Food Concepts Plc chalked up 5 Kobo to settle at N2.50 per unit versus N2.45 per unit.
The volume of securities traded by market participants surged by 50.7 per cent to 13.7 million units from the previous 9.1 million units, while the value of securities went down by 79.7 per cent to N65.2 million from N320.4 million, and the number of deals crashed by 3.6 per cent to 27 deals from the previous session’s 28 deals.
At the close of transactions, Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with the sale of 3.4 billion units for N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc, which exchanged 2.3 billion units valued at N6.5 billion, and CSCS Plc with 73.9 million units transacted for N5.2 billion.
GNI Plc also closed the trading day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units valued at N415.7 million.
