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H1 2012 Earnings: Stanbic Reports N5 billion Net Income

By on July 26, 2012

LAGOS, NIGERIA – 26 July 2012 – Stanbic IBTC Bank, a member of Standard Bank Group, has announced its unaudited IFRS compliant results for the six months period ended 30 June 2012.

Speaking from the Bank’s headquarters in Lagos, Sola David-Borha, CEO of Stanbic IBTC Bank, commented:

“Our diversified business model, excellent customer service and highly disciplined approach to risk management ensured that we continued to grow our revenues and business operations in the first half of 2012. Gross revenues and profit after tax grew by a pleasing 45% and 30% respectively and we continued to witness moderate growth in our loan book during the period. This performance is driven by our continued commitment to providing customers with the array of competitive and high quality products and services. As we continue to leverage on our growing points of representation, introduce new products and pursue our mobile money offerings with the resultant increase in transaction volumes, our revenues should continue to witness good growth. We remain determined and committed to delivering long term value to our shareholders and clients by providing end-to-end financial services and growing our business in line with a well-measured risk appetite at all times. We remain cautiously optimistic of the second half of 2012”.

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Key performance highlights

Profit and loss accounts

 

• Gross revenue of N45.6 billion, up 46% (N31.2 billion June 2011)

 

• Interest income of N28.9 billion, up 73% (N16.7 billion June 2011)

 

• Non-interest revenue of N16.6 billion, an increase of 15% (N14.3 billion June 2011)

 

• Total operating income of N31.0 billion; up 10% (N28.2 billion June 2011)

 

• Credit impairment charges of N1.3 billion, down 37% (N2.0 billion June 2011)

 

• Profit before tax of N6.1 billion, up 13% (N5.4 billion June 2011)

 

• Profit after tax of N5.0 billion, an increase of 30% (N3.75 billion June 2011)

 

• Cost-to-income ratio of 76.1% (73.6% June 2011)

 

Balance sheet

 

• Total assets, up 4% to N577.4 billion (N554.5 billion December 2012)

 

• Loans & advances to customers, up 29% year-on-year and 7% year- to date to N283.4 billion ( N220.1 billion June 2011, N266.1 billion December 2011)

 

• Deposits from customers, up 31% year-on-year and down 14% in H1 2012 to N246.2 billion (N188.5 billion June 2011, N287.2 billion December 2011)

 

• Non-performing loans of N20.6 billion (N17.7 billion December 2012)

 

• Non-performing loan to total loan ratio of 7.3% (6.7% December 2011)

 

• Annualised after tax return on average equity of 10.6% (6.7% December 2011) with strong capital adequacy ratio of 21.9%.

 

Capital and liquidity

Stanbic IBTC maintained its diversified funding base through the second quarter of 2012, with total deposits and current accounts to customers, representing 43% of total funding. The group’s balance sheet remained liquid at 56.8% liquidity ratio reported in H1 2012.

The group maintained its signature capital base strength with Tier 1 capital adequacy of 21.3% and total capital adequacy of 21.9% which is significantly higher than the regulatory minimum of 10%. Group capital base is adequate to drive business growth and support business risks and contingencies for the foreseeable future.