Stanbic IBTC Reports N83bn Profit; Declares Highest Dividend Since 1989

Stanbic IBTC Holdings Plc, Wednesday, presented its audited financials for the full year ended December 30, 2020, ahead of next week’s deadline.

Brandnewsday understands that Stanbic IBTC report bears tell-tale signs of the lockdown imposed across the country for most of the year owing to the outbreak of the Coronavirus pandemic, especially the flat gross earnings growth, arising from the drop in interest income, the effect of which was mitigated by the increase in trading revenue.

Net profit growth for the period would have been more significant than the 10.89% recorded, but for the 508.76% jump in a net impairment charge, or loan loss provision; which reduced the impact of the N15.778bn or 43.43% growth in trading revenue.

Stanbic IBTC Reports N83bn Profit; Declares Highest Dividend Since 1989

The board however offered a seemingly more generous N39.982bn or N3.60 as the final dividend per share, up from the previous N21.01bn. This is in addition to the N4.442bn paid as interim dividend, compared to the previous N10.474bn, both from the Basic earnings per ordinary share of N7.29, up from N6.92 each reported in the preceding year.

The icing on the cake may just be the one new share for every six held by shareholders as of June 10, 2021, subject to shareholders’ nod at the annual general meeting on May 27, as well as regulatory approval thereafter.

According to the report submitted to the Nigerian Stock Exchange (NSE), gross earnings rose by a marginal 0.27% from N233.808bn to N234.446; of which Interest income fell to N105.776bn from N120.412bn in the preceding year, and was driven by the interest on loans and advances to customers valued at N61.099bn, down from N66.523bn; and interest on investments that fell from N50.852bn to N42.904bn.

Interest expense dropped to N31.561bn, as against the previous N42.581bn, which was primarily the N12.224bn interest on borrowed funds, which dropped from N13.671bn; interest on interbank deposits at N7.403bn, up from N5.11bn; and on term deposits, which reduced drastically from N16.43bn to N6.192bn; following which net interest income dropped to N74.215bn from N77.831bn.

Non-interest revenue improved to N124.709bn from N108.755bn; net fee and commission revenue inched marginally to N71.19bn from N70.393bn, boosted by the N47.025bn asset management fees, which rose from N42.358bn; while Fee and commission revenue also stayed flat at N75.151bn from N75.034bn; while fee and commission expense fell slightly to N3.961bn from N4.641bn.

Revenue from fixed income and currencies trading for the year stood at N52.11bn, as against the previous N36.332bn; other revenue dropped from N2.03bn to N1.409bn; resulting in income before credit impairment charges of N198.924bn, compared to N186.586bn in 2019. Net impairment charge on financial assets grew by N8.303bn from N1.632bn to N9.935bn.

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Operating expenses for the period remained flat at N94.272bn, compared to N94.029bn; staff costs rose marginally to N42.143bn from N40.618bn; while other operating expenses stood at N52.129bn, as against the previous N53.411bn, of which N8.076bn was for information technology, up from N7.517bn.

Profit before tax, therefore, stood at N94.717bn from N90.925bn; while a slight drop in income tax to N11.506bn, from N15.89bn; resulted in a profit for the year of N83.211bn; up from N75.035bn.

Total assets improved from N1.876tr to N2.486tr, of which customer loans and advances stood at N625.139bn, from N532.124bn; while total liabilities improved to N2.107tr from N1.574tr, the lion’s share of which was the N1.325tr deposit and current accounts, up from N886.743bn, of which customer deposits stood at N819.944bn, up from N637.84bn.

The closing date for the dividend proposed is closed of business on April 7, following the register of shareholders will be closed from April 8 to 15, after which the dividend will be paid electronically to the bank accounts of shareholders on May 28, 2021.