Stanbic IBTC’s profit hits 3-year high
Stanbic IBTC Holdings Plc reported N48.31 billion in net income for the first twelve months through December 2017, the highest in three years.
For the year ended December 2017, the Nigerian lender’s profit before tax spiked by 64.39 percent to N61.16 billion, beating the N57.12 billion estimate of 10 analysts surveyed by businessDay.
Interest income was up 25.30 percent to N122.91 billion in the period under review, thanks to the contributions from income from short term government securities and income from loans and advances.
Gross earnings hit N21.58 billion as at December 2017, the highest in five years since BusinessDay started gathering data.
Stanbic IBTC has been recording consistent earnings growth since 2015 after it overcame the challenges brought on by a suspension by the Financial Reporting Council of Nigeria (FRCN) over financial misstatements.
The Nigerian lender was able to maintain higher growth in interest income compared to cost growth as cost to income ratio (CIR) improved to 49.80 percent in the period under review as against 54.84 percent as at December 2016.
Staff costs were up 20.25 percent due to accrued performance reward and inflation adjustment to staff salaries.
Consumer-price growth in Africa’s most populous nation decelerated to 14.3 percent from 15.1 percent in January, the Abuja-based National Bureau of Statistics said in an emailed statement.
Stabic IBTC’s loan portfolio has grown slightly by 3.67 percent to N381.71 billion the period under review as the lender adopted a cautious renewed lending.
Deposit from customers spiked by 32.63 percent to N815.36 billionn as at December 2017, the highest in five years.
Stanbic IBTC Holdings’ N493.93billion market capitalization as of Wednesday, is more than theN357.26 billion, N405.61 billion and N406.31 billion market value of tier 1 lender Access Bank, First Bank Holdings, and United Bank for Africa (UBA).
Stanbic IBTC’s shares have gained 18.43 percent since the start of the year while total shareholders’ fund stood at N185.21 billion as at December 2017.
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