Stanbic IBTC Holdings profit accelerates to record N141bn
Net profit at Stanbic IBTC Holdings, the local unit of Africa’s biggest bank, Standard Bank, shot 74 per cent to its peak since inception three decades and a half ago, its unaudited accounts issued Wednesday showed.
The jump was recorded on the back of higher interest income.
Unstoppable inflation continues to create a boom for Nigerian lenders, prompting the CBN to raise the reference rate by 18.6 per cent last year to slow galloping price levels, enabling banks to charge more for loans.
It earned Stanbic IBTC N270.6 billion in interest income compared to N152.7 billion a year ago.
The apex bank is expected to make its most aggressive move in curbing inflation at its rate-setting meeting this month with Bloomberg projecting as much as a 5 per cent hike in rate.
Should that happen, the boom in interest income that banks are seeing is not likely to decelerate in the short term.
The financial services group reported a more than one-fifth jump in net fees and commission to N117.8 billion, with brokerage and financial advisory contributing over 60 per cent.
That was made possible by the group’s big strength in the asset management space and dominance of the pensions market, where it is the market leader through Stanbic IBTC Pension Managers, whose assets under management currently are valued at more than N4 trillion.
Profit before tax came to N172.9 billion, up by 72.4 per cent, while post-tax profit climbed to N140.6 billion from N80.7 billion.
The group set aside N15.5 billion to cover loans whose chances of being repaid have been hampered by defaults.
Stanbic IBTC Holdings, through its flagship subsidiary Stanbic IBTC Bank, focuses most on lending to the manufacturing sector against the general trend among Nigerian lenders, whose exposure to oil & gas is bigger than that of any other sector.
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Net profit at Stanbic IBTC Holdings, the local unit of Africa’s biggest bank, Standard Bank, shot 74 per cent to its peak since inception three decades and a half ago, its unaudited accounts issued Wednesday showed.
The jump was recorded on the back of higher interest income.
Unstoppable inflation continues to create a boom for Nigerian lenders, prompting the CBN to raise the reference rate by 18.6 per cent last year to slow galloping price levels, enabling banks to charge more for loans.
It earned Stanbic IBTC N270.6 billion in interest income compared to N152.7 billion a year ago.
The apex bank is expected to make its most aggressive move in curbing inflation at its rate-setting meeting this month with Bloomberg projecting as much as a 5 per cent hike in rate.
Should that happen, the boom in interest income that banks are seeing is not likely to decelerate in the short term.
The financial services group reported a more than one-fifth jump in net fees and commission to N117.8 billion, with brokerage and financial advisory contributing over 60 per cent.
That was made possible by the group’s big strength in the asset management space and dominance of the pensions market, where it is the market leader through Stanbic IBTC Pension Managers, whose assets under management currently are valued at more than N4 trillion.
Profit before tax came to N172.9 billion, up by 72.4 per cent, while post-tax profit climbed to N140.6 billion from N80.7 billion.
The group set aside N15.5 billion to cover loans whose chances of being repaid have been hampered by defaults.
Stanbic IBTC Holdings, through its flagship subsidiary Stanbic IBTC Bank, focuses most on lending to the manufacturing sector against the general trend among Nigerian lenders, whose exposure to oil & gas is bigger than that of any other sector.
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
Donate
TEXT AD: Call Willie – +2348098788999
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