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Stanbic IBTC’s half-year profit falls by 52%

By on July 11, 2015

Stanbic IBTC Holdings Plc posted a profit before tax of N9.537bn in the first half of 2015, down by 52 per cent from the N19.946bn it declared for the same period in 2014.

The company’s profit after tax was put at N9.695bn, which is 40 per cent lower than the N16.184bn recorded in the corresponding period of 2014.

Its gross earnings, however, grew by 11 per cent year-on- year to N68.295bn, while total assets and liabilities increased by nine per cent and 10 per cent to N1.033tn and N911.174bn, respectively.

The company’s unaudited results for the first half ended June 30, 2015, which it filed with the Nigerian Stock Exchange, showed that it earnings per share dipped by 46 per cent to 80 from 148 in the same period in 2014.

Stanbic IBTC proposed an interim dividend of N0.90 per share, down from N1.10 in the same period last year. The dividend payment is slated for August 28.

Analysts at FBN Capital Limited, in their analysis of Stanbic IBTC’s second quarter results, said the company’s PBT fell markedly by 57 per cent year-on-year to N4.7bn.

“The weakness was driven by a seven per cent year-on-year decline in profit before provisions and a significant increase in loan loss provisions to N4bn. To a lesser extent, a five per cent year-on-year growth in operating expenses also contributed.”

Specifically, the weakness in pre-provision profit was due to a 14 per cent year on year reduction in non-interest income, the analysts said.

The analysts said, “As for the funding income line, it grew marginally by two per cent year-on-year to N11.4bn. The weakness on the non-interest income line is significant because historically, it has been a strong revenue driver for Stanbic.

“The softness on this line was primarily driven by a 14 per cent year-on-year decline in trading-related fees which is evident from the macro-driven weakness in the capital markets.”

 

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