Stanbic IBTC Holdings PLC, a member of the Standard Bank Group, has
announced its mid-year audited results for the period ended June 30,
2019. The Group also announced an interim dividend of 100 kobo.
According to the Stanbic IBTC’s income statement, the Group recorded an
increase in gross earnings to N117.4 billion, representing a 3% growth.
The company also maintained its total operating income of N94 billion.
Profit before tax stood at N44.7 billion, while profit after tax was
N36.2 billion. Other results reflect an increase in non-interest revenue
which stood at N54.9 billion while net-interest income was N39.3
billion.
Stanbic IBTC’s balance sheet reflect that the Group’s total asset’s was
N1,619.3 billion while the gross loans and advances was N479.7 billion,
an increase in 5%, compared to last year’s figures. While customer
deposits was N693.5 billion, there was an improvement in
current-and-savings-accounts deposits mix which went up to 68.9%.
Speaking at the formal announcement of the results at the Stanbic IBTC
Holdings PLC Headquarters, Yinka Sanni, Chief Executive, Stanbic IBTC,
stated that the Group’s business segments were profitable, despite the
challenging business and regulatory environment.
He said: “Our financial results in the first half of 2019 reflected
similar trends encountered in the first quarter. The operating
environment remained muted, regulatory changes coupled with the highly
competitive landscape continued to impact overall returns. Still, our
diversified business model continues to set us apart. Our business
segments remained profitable and resilient although at a slower pace
when compared to prior year.”
Sanni disclosed that there has been a return to growth in the second
quarter, mainly from the communication and oil and gas sectors. He
further added that the gross non-performing loan to total loan ratio
which was 3.91%, was within acceptable regulatory limits.
Speaking on other areas of the mid-year results in which the Group
experienced growth, he noted that assets under custody rose to N7
trillion (representing a 42% growth) while assets under management grew
by 8% to N3.5 trillion.
Sanni highlighted three areas through which Stanbic IBTC Holdings
achieve growth targets as: EZ cash loan/advance, a recently launched
instant credit solution; enhanced migration of customers to digital
platforms and the launch of RetireWell Individual Retirement Savings
Account, a retirement savings account targeted at self-employed
individuals.
He shed more light on those initiatives: “To further drive credit
growth, in the retail space, we launched an instant credit solution
named EZ cash loan/advance, which gives access to loans in less than a
minute to pre-approved customers. This, among other initiatives, will
enable us achieve the targeted loan growth for the year.
“The disciplined execution of our digital strategy has seen customers
increasingly adopting and transacting on our digital platforms. The
number of transactions performed by customers on our digital channels
was up 26% between H1 2019 and H1 2018. This translated into a
year-on-year growth of 71% in electronic banking fees. Moreover, we
instituted a digital academy targeted at equipping staff with digital
skills at various levels while also driving collaboration with Fintech
players to position us for early adoption of innovative solutions.
“Following the launch of the micro pension initiative by the government
earlier in the year, we deployed the RetireWell Individual Retirement
Savings Account. We have put in place strong agency network in key
locations to drive growth in this area and we have made good progress in
this regard.”