Stanbic IBTC half-year profit up 36% as non-interest revenue boosts earnings

Stanbic IBTC Holdings Plc reported for the first half of the year an increase of more than a third in its after-tax N30.7 billion over the previous year, according to its audited financial statements released on Tuesday.

The local unit of Africa’s largest bank by assets, Johannesburg-based Standard Bank Group, reported a 45.2% improvement in gross profit to $134.9 billion. naira, most of which comes from non-interest earnings.

Stanbic IBTC Holdings’ share price opened at 28 naira per unit in Lagos on Wednesday, its lowest level in 52 weeks, but had already appreciated by 8.93% as of 10:39 WAT in light of the remarkable result , trading near the maximum 10 percent of the upper limit allowed daily.

In a separate document, the board announced an interim dividend of N1.50 per share, half more than it paid for the same period last year.

Net interest income jumped 53.1% to 50.4 billion naira, while non-interest income soared to 63 billion naira.

Trading revenue, which the financial services group earned from its investments in fixed income securities and currencies, nearly doubled to N16.5 billion.

ALSO READ: Stanbic IBTC Holdings to start fintech unit as profits plunge

Through its Stanbic pension subsidiary IBTC Pension Managers, the group controls the lion’s share of the pension market in Nigeria. He is on track to create a fintech unit, with approval expected from industry watchdogs.

Pre-tax profit for the period under review was N40 billion, an improvement of more than three-fifths.

Profit after tax increased by 36% to N30.7 billion.

To cover bad loans, whose likelihood of repayment has been hampered by recurring defaults, Stanbic IBTC has set aside more than three times the amount it allocated for this purpose a year ago, raising concerns which the independent auditor PricewaterhouseCoopers also noted in its report.

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