Stanbic IBTC Holdings’ Q2 posts 169% PAT growth
Stanbic IBTC Holdings Plc has reinforced its commitment to deliver value to shareholders’ funds, in its half year result recently released.
However, the result, which showed remarkable growth in pre and post-tax profits, challenged the financial institution on rising impairments, operating expenses and regulatory sanctions.
The Holding company’s unaudited result for the period ended 30th June, 2017, showed remarkable growth in performance indices compared with figures of the comparative period of 2016.
The company’s Q2 2017 results showed that PBT and PAT grew strongly, by 94 per cent y/y and 169 per cent y/y, respectively.
The results were driven by a 43 per cent y/y growth in pre-provision profits. This growth was underpinned by an 80 per cent y/y enlargement in funding income and, to a lesser extent, a 17 per cent y/y increase in non-interest income.
The result showed that the strong points of the results were strong enough to offset increases of 72 per cent y/y and 18 per cent y/y in loan loss provisions (impairments) and opex respectively.
Credit impairment or loan loss provisioning charges rose to N13,953 billion, from N8,450 billion in the second quarter 2016, while operating expenses for the group soared to N38, 202bn, from N32,935 bn in 2016 second quarter.
The P&L, PAT growth by 169% y/y, was largely to a 43% y/y reduction on the minorities’ interest line.
According to the result released on Tuesday by the Nigerian Stock Exchange (NSE), which has elicited mixed reactions from the market, the group’s gross earnings peaked at N97, 198bn, from N71.320bn posted in the same period of 2016.
Profit before tax for the group peaked at N29,169bn, against N 15,682 recorded in the second quarter 2016.
Stanbic IBTC group’s profit after tax for the second quarter 2017 accounting period closed at N24.112bn, compared to N11, 317bn recorded in the H1 period of 2016, reflecting 169 per cent growth in PAT.
Following the higher earnings posted by the group in the period under review, Income tax paid in the period soared to N5,057bn, against N4,365bn in the prior year’s period. However, non-controlling interest dropped to N1, 067million from N1, 853m in the prior 2016 H1 period.
Profit attributable to equity holders of the parent company peaked at N23,045bn, from N9,464bn in the same period of 2016, reflecting about 150 per cent growth.
The company proposed interim dividend of 6 kobo, same as interim dividend paid in the H1 period of 2016.
The company’s result showed that group’s net interest income soared to N41, 035bn, against N22,849 bn in the prior 2016 year H1.
Total assets increased to N1,273,960 trillion, from N1,053,523 trn recorded in the first half 2016. However total liabilities recorded in the same period also increased to N1,112,495trn, from N912,725bn in 2016 H1.
The total penalties paid by the group amounted to N40.7m, against N18.1m paid in the corresponding period of 2016.
