Stanbic IBTC’s Profit Declines in 2015, Improves in 2016

Stanbic IBTC Holdings Plc yesterday announced its audited results for the year ended December 31, 2015. The financial institution also declared its results for the nine months ended September 30, 2016. The results were delayed due to a dispute with the Financial Reporting Council of Nigeria.

Details of the results show that Stanbic IBTC Holdings ended 2015 financial year with gross earnings of N140.027 billion, up by 7.2 per cent from N130.654 billion in 2014.

Net interest income fell by 6.0 per cent from N46.658 billion to N43.86 billion in 2015, while non-interest income stood at N56.788 billion in 2015, compared with N57.987 billion in 2014.Credit impairment charges soared by 364 per cent to N14.931 billion in 2015 from N3.217 billion in 2014. Operating expenses rose by 7.2 per cent to N62 billion to N57.9 billion in 2014.

Consequently, profit before tax (PBT) fell by 45.7 per cent to N23.65 billion, from N43.52 billion, while profit after tax (PAT) declined by 45.2 per cent to N18.891 billion, from N34.46 billion in 2014. Despite the decline in profit, the directors have recommended a dividend of five kobo per share.

Meanwhile, shareholders should expect a better deal at the end of this year as the company has reported improved nine months results. Stanbic IBTC Holdings Plc reported an increase in top and bottom lines.

The financial institution posted gross earnings of N114.622 billion in 2016, up from N104.418 billion in the corresponding period of 2015. Net interest income improved from N32.92 billion in 2015 to N39 billion in 2016. Total interest income grew from N74.2 billion to N91 billion. Credit impairment charges increased from N12.48 billion to N15.3 billion.

PBT increased by 65 per cent, jumping from N5.567 billion to N25.688 billion, while PAT stood at N20.2 billion in 2016, up from N13.56 billion.
Commenting on the 2015 fourth quarter performance, analysts at FBN Quest said the results were in line with their expectations.

“Although PBT and PAT of N8.3 billion and N4.4 billion were ahead of our forecasts by 54 per cent and 22 per cent respectively, the results were boosted by lower-than-expected loan loss provisions. Profit before provisions of N26.4 billion was in line with our forecast,” they said.