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Stanbic IBTC to raise N30bn fresh capital

By BusinessNews Staff on August 9, 2014

Stanbic IBTC, the Nigerian arm of South Africa’s Standard Bank, plans to raise up to N30 billion in tier-2 capital.
The bank disclosed this in a presentation on its website yesterday.

According to Reuters, the Chief Executive Officer, Stanbic IBTC Holdings, Sola David-Borha, confirmed the capital raising during an analysts conference call yesterday. But she said the actual amount would depend on market conditions and regulatory guidelines. She did not provide a timeline.
“We will continue to focus on growing our client base across target segments and key sectors and maintain rigour in credit process,” David-Borha said.

Shares in Stanbic IBTC, which have gained 37.2 percent this year, were flat on Thursday at N29.34 per share.

David-Borha said the bank was aiming for a 15 per cent loan growth for the second-half of 2014, targeting business customers, after it grew loans 18 per cent in the first-half.
The bank said it had a mix of between 30 and 35 per cent of its loans in foreign currency and the balance in local currency.

Stanbic IBTC Holdings Plc’s unaudited results for the six months ended June 30, 2014 had shown a decline in operating cost which supported its cost to income ratio to 58 per cent.
However, the uptick in the group’s non performing loan (NPL) ratio to 4.8 per cent in the period under review, compared to the 4.4 per cent it stood as at December 2013, remains a concern to industry watchers.

But its cost of risk improved to 0.9 per cent, as against the 1.5 per cent it was in the first quarter of 2014. Stanbic IBTC recorded gross earnings of N61.5 billion, an increase of 13 per cent over the N54.5 billion recorded in the comparable period of 2013.
Profit after tax also increased by 56 per cent to N15.9 billion, from N10.2 billion as at June 2013.

[This Day]

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