Aduragbemi Omiyale
By Aduragbemi Omiyale
Shareholders of Stanbic IBTC Holdings Plc will receive N1.50 per share as an interim dividend for the first half of 2023, the board of the organisation has confirmed.
The cash reward was announced by the board after the release of the company’s financial statements for the period ended June 30, 2023.
The initial months of 2023 were dominated by significant incidents like the general elections and cash scarcity, which temporarily impacted business activities.
However, the tide turned in the second quarter as business activities gained momentum.
The Stanbic IBTC Bank Purchasing Manager Index (PMI) rebounded, surpassing the 50-point mark in April 2023, to close at 53.2 in June 2023, indicating positive economic trends. Improved access to cash, heightened customer demand, and business expansion contributed to the resurgence.
A look at the performance of the financial institution showed that it achieved a remarkable surge in profitability and key financial metrics, with the pre-tax profit increasing by 108 per cent to N82.99 billion, as the post-tax profit gained 121 per cent to close at N67.92 billion.
The topline of the results was not different from the bottom, as the revenue streams recorded robust growth in the period under review, underscoring its resilience and adaptability.
The company’s net interest income rose by 44 per cent to N72.68 billion, and the non-interest revenue surged by 57 per cent to N98.62 billion, while the interest income grew by 62 per cent as a result of higher yields and loan volumes.
In the results, net fees and commission income increased by 12 per cent due to growing fees from digital banking transactions and letters of credit. The sustained growth in trading income was attributed to improved foreign exchange (FX) trading activities and FX revaluation gains.
As for the balance sheet, it was not lagging behind, as the key metrics, such as total assets, gross loans and advances, and customer deposits, were all fortified.
Total assets increased by 47 per cent to N4.45 trillion, gross loans and advances surged by 37 per cent to N1.70 trillion, and customer deposits ballooned by 32 per cent to N1.64 trillion.
Commenting on the firm’s performance in the first six months of the year, the chief executive of Stanbic IBTC, Mr Demola Sogunle, said, “The first half of 2023 was an eventful one for us as an organisation within the Nigerian operating environment…we reported significant growth in our key income lines during the period under review.
“The group’s profitability increased by over 100 per cent year-on-year (YoY), driven by growth across our revenue streams. Interest income grew by 62 per cent mainly due to higher yield and volume of loans and investments, which aligns with our efforts to support our clients through loan offerings and investment opportunities.”
He reiterated that the organisation retained its Fitch AAA (nga) rating, reaffirming its position as the only financial services provider in Nigeria with the highest rating from a global rating agency.
The banker assured that the organisation would continue supporting its clients’ growth by providing solutions that aid their expansion.
“Stanbic IBTC Bank successfully processed the first inbound commercial transaction on the Pan African Payment and Settlement System (PAPSS) in Nigeria, an initiative of the African Union and the African Continental Free Trade Area (AfCFTA) Secretariat, designed to promote intra-African trade and economic integration.
“This demonstrates our efforts to provide our clients with efficient, secure payment and settlement solutions across Africa. We will continue to leverage our expertise to provide solutions that enable our clients to unlock the full potential of the African market,” Mr Sogunle remarked.
Regarding the company’s performance for the rest of the year, he affirmed the organisation’s dedication to delivering on its 2023 guidance and continuing to provide solutions that unlock the potential of the African market.
