Stanbic IBTC Holdings Plc, the third largest Nigerian lender by market value, reported a strong second-quarter profit that was aided by increase in interest income on its loan book.
Net profit rose to N24.11 billion in the six months to June 30, from N11.31 billion, the company said Tuesday in an exchange filing.
10 analysts polled by BusinessDay expected Stanbic IBTC to report net profit of N17.51 billion.
The lender has never fallen short of adding value to shareholders since releasing its 2015 audited financial statement after several months of delay due to a dispute with the Financial Reporting Council (FRC).
Stanbic IBTC’s interest income rose by 54.50 percent to N56.72 billion in June 2017 from N36.71 billion as at June 2016, driven by 182.63 surge in interest income on investment securities.
Gross earnings were up 36.27 percent to N97.19 billion in the period under review. Non-interest income increased by 26.51 percent to N40.28 billion in June 2017 from N34.21 billion the previous year.
The lender’s operating expense was up 16.0 percent to N38.14 billion due to inflationary trend while the cost to income ratio moderated to 47 percent in the period from 57.70 percent the previous year on the back of strong growth in operating income.
While operating expenses are rising due to high inflation, Stanbic IBTC is efficient as net margin increased to 24.80 percent as against 15.80 percent recorded in June 2016.
Stanbic IBTC’s shares have gained 170 percent since the start of the year, valuing it at N405.20 billion.
The boards of director of Stanbic IBTC have approved an interim dividend of 60k or N600 million on every N0.50 ordinary shares held. This translates to a dividend yield of 1.48 percent.
Banks in Africa’s most populous nation and largest economy have had earnings spike on the back of the of improved liquidity in the foreign exchange market, thanks to the introduction of the Investors’ and Exporters’ by the central bank.
The cumulative interest income of 10 lenders that have released their half year results showed an increase of 33.30 percent to N1.26 trillion, from N947.11 billion in June 2016.
Stanbic IBTC Holdings’ deposit total customers were up 10.28 percent to N681.71 billion as against N614.74 billion the previous year. Total loans to customers increased by 2.20 percent to N376.63 billion June 2017 from N368.23 billion as at June 2016.
BALA AUGIE
