Stanbic IBTC Records 5.15% Growth in FY2019 Earnings
UMORU ABDULKADIR
Stanbic IBTC Holdings Plc has announced a 5.15 per cent increase in its gross earnings for the year ended, December 31, 2019, rising to N233.808 billion from N222.360 billion of 2018.
It also reported a marginal 0.80 per cent growth in its Profit after tax from N74.44 billion at the fourth quarter (Q4) period of 2018 to N75.035 billion for Full Year 2019.
The lender disclosed this in its Unaudited Consolidated and Separate Annual Statements of Financial position as 31st December 2019 filed to the Nigerian Stock Exchange (NSE) January 30, 2020.
Its Profit before Tax (PAT) also rose marginally by 3.14 per cent year-on-year (yoy)
To N90.925 billion, up from N88.152 billion recorded at the end of December 2018.
Similarly, its Interest Income appreciated by 1.71 per cent to N120.4 billion in Q4 2019 from N118.382 billion in the corresponding period of 2018, it, however, declined by 3 quarter-on-quarter to N29.37 billion buoyed by growth in the loan book.
Being conscious of the Central Bank of Nigeria’s (CBN) guideline mandating Deposit Money Banks (DMBs) to maintain Loan-to-Deposit Ratio of 65 per cent initially by December 31, 2019 and now March 31, 2020 the bank’s Loans Customers by 21.28 per cent to N535.17 billion at the end of the fourth quarter 2019, up from N441.26 billion in the corresponding period of 2018, thus; raising its LDR to 65.70 per cent.
While it grew its loan portfolio by 21.28 per cent to N535.17 billion, its deposits from Customers dipped 8.39 per cent to N886.74 billion from N967.96 billion it received from Customers at the same time in 2018, partly due to pressure from CBN to meet LDR and weak customers’ confidence.
A further analysis of the financial statements shows that it grew its Non-Interest Revenue by 6 per cent, rising from N102.604 billion at full-year 2018 to N108.755 billion in the corresponding period of 2019, while its trading Revenue increased by 16 per cent from N31.31 billion at the end of 2018 to N36.33 billion in the same period of 2019.
During the period in focus, its Earnings Per Share (EPS), which is an indicator performance of the company depreciated by 1.7 per cent to N5.62 from N7.04 at the end of 2018 financial year.
Currently with market capitalisation of N435, 956,145,357 and 10,504,967,358 outstanding shares at the NSE, Stanbic IBTC Bank is a member of Johannesburg-headquartered Standard Bank, itself Africa’s biggest lender by assets. With over 180 branches all over Nigeria, its operations cover personal and commercial banking.
As at the time of this analysis, its shares price value currently stands at N41.50 per unit of shares.
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