Stanbic IBTC Holdings Plc (NGX: STANBIC), a member of the Standard Bank Group has posted an impressive 42.30% growth in profit after tax for financial year ended 31st December, 2022.
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The unaudited consolidated and separate annual financial statements released by the bank and seen by Investogist shows growth across all major revenue streams; 45.75% growth in Interest revenue, 9.15% growth in fee and commission revenue, 161.07% growth i trading revenue, and 308.66% growth in other revenue.
Analysis of Statement of Profit or Loss and Other Comprehensive Income
- Gross Earnings: Stanbic’s gross earnings stood at N287.87bn, 39.31% higher than the N206.64bn reported in 2021.
- Interest Income: The bank’s interest income went up by 45.75% to N152.67bn from N104.75bn. N119.96bn interest on loans and advances to customers constituted the major part of this interest income (2021: 77.71bn). Interest on investments that amounted to N31.45bn was also reported by the bank (2021: N26.20bn).
- Fee and commission revenue: N58.60bn from Asset management fees, N10.01bn from brokerage and financial advisory fees, N7.51bn from electronic banking, N5.44bn from account transaction fees and others earned Stanbic N96.40bn fee and commission revenue. It grew this income segment by 45.75%, as N104.75bn was reported in 2021.
- Trading revenue: N34.68bn was reported as trading revenues in the year in review, 161.07% higher than the N13.28bn reported in the preceding year. All but N2mn of the trading revenue came from fixed income and currencies.
- Staff costs: N50.99bn was spent on staff costs, 21.30% above the N42.04bn spent in 2021.
- Other Operating Expenses: Stanbic spent N78.56bn on operations, a bulk of which were the N14.60bn expensed on AMCON expenses and N13.53bn spent on information technology.
- Profit before tax: Stanbic posted a profit before tax of N100.59bn, 52.42% improvement on the N66.00bn posted in 2021. The bank went on to pay an income tax of N19.53bn (2021: N9.03bn).
- Profit after tax: The profit after tax reported was N81.06bn, against the N56.96bn reported in 2021, a growth of 42.30%.
- Earnings per share: Stanbic posted an Earnings per Share of N6.05 for the period under review.
Analysis of Statement of Financial Position
- Cash and cash equivalents: The cash and cash equivalent held by Stanbic as at December 2022 went up 2.87% to N671.81bn when compared with what it had as at 31st December 2021, a time it held N653.07bn.
- Total Assets: The company’s assets went up by 10.74%, from N3.03tn as at 31st Dec. 2021 to N2.74tn. Loans and advances to customers which rose from N937.14bn to N1.20tn represented a bulk of the companies assets.
- Deposits from customers: Stanbic brought in 11.96% more money from its customers than it did in 2021. It had N1.74tn of customers deposit on its books as at 31st December, 2022 (31st Dec. 2021: N1.55tn).
- Total Liabilities: The total liabilities increased by 11.14%, from N2.36tn to N2.62tn. Deposits and current accounts constituted N1.744tn of the bank’s liabilities.
- Shareholder’s fund: The shareholder’s fund grew by 8.24%, from N407.92bn to N376.86bn. The bank’s reserve went up from N258.75bn to N290.65bn.
Analysis of Statement of Cash Flow
- Operating activities: N72.70bn was used for operating activities (330.24bn was used for the same activity in the preceding period).
- Investing activities: N27.48bn was generated from investing activities, due to the N53.45bn it earned from the sale of financial investment securities (N86.72bn was used in the preceding period).
- Financing activities: N27.11bn was generated from financing activities (N61.10bn was used in financing activities in the preceding period).
About the company
Stanbic IBTC Holdings PLC is a company domiciled in Nigeria. The address of the company is IBTC Place, Plot 1C Walter Carrington Crescent, Victoria Island, Lagos.
The group is primarily involved in the provision of banking and other financial services to corporate and individual customers.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur