Stanbic IBTC Holdings Plc recorded a double-digit decline in both revenue and profit for the period ended 30 June 2021, the financial statements released by the bank shows.
Nevertheless, the bank increased its interim dividend for the period to N1.00 from N0.40 paid in the same period in 2020.
Income statement
Gross earnings declined by 26.1% to N93.59 billion in H1 2021, from N126.57 billion recorded in H1 2020.
The decline in gross earning is due to over N10 billion drop in interest to N44.23 billion from N55.13 billion in H1 2020 coupled with a more than N28 billion slump in trading revenue to N5.47 billion from N34.26 billion in H1 2020.
On the other hand, the bank recorded a 17.9% increase in fee and commission revenue to N44.79 billion in H1 2021 from N36.70 billion in H1 2020.
The bank’s operating expenses rose by 14.1% or N6.83 billion to N55.37 billion in H1 2021 from the N48.56 billion spent in H1 2020. N20.20 of the operating expenses is staff costs.
AMCON expense stood at N13.02 billion in H1 2021. AMCON charges (0.5% of the total asset on and off-balance sheet items) is a statutory levy by the Asset Management Corporation of Nigeria on all Commercial Banks operating in Nigeria.
The Bank recorded a 52.9% decline in profit before tax to N24.71 billion in H1 2021 from N45.20 billion in H1 2020. The bank paid an income tax of N2.16 billion.
The profit for the year decreased by 50.1% or N22.66 billion to N22.54 billion in H1 2021 from N45.20 billion recorded in H1 2020.
The earnings per share dropped to N1.92 from N4.19 in H1 2020.
Balance sheet
Stanbic IBTC’s total assets as at 30 June 2021 decline by 2.4% or N58.94 billion to N2.43 trillion from N2.49 trillion as at 31 December 2020.
Major components of the assets
- Loans and advances to customers: N759.60 billion (N625.14 billion in 2020).
- Financial investments: N650.96 billion (N612.28 billion in 2020).
- Cash and bank balances: N521.40 billion (N627.11 billion in 2020).
Similarly, the Banks total liabilities declined by 1.3% or N26.78 billion during the period to N2.08 billion from N2.11 billion in 2020.
Major components of liabilities
- Deposits from customers: N958.37 billion (N819.94 billion in 2020).
- Deposits from banks: N392.37 billion (N505.62 billion in 2020).
- Trading liabilities: N160.55 billion (N188.5 billion in 2020).
- Collections / remittance payable: N175.06 billion (N225.72 billion in 2020). This includes N9.8bn (Dec 2020: N51bn) relating to the balance held in respect of clearing and settlement activities for NIBSS, FMDQ over-the-counter foreign exchange transactions.
Total equity dropped to N346.44 billion during the period under review, due to a N32 billion decrease in reserves to N230.1 billion from N262.69 billion.
Cash flow
- Net cash flows generated from operating activities slumped to N51.42 billion in H1 2021 from N188.72 in H1 2020.
- Net cash flows used in investing activities fell to N56.02 billion in H1 2021 from N94.80 billion in H1 2020.
- Net cash flows used in financing activities increased to N57.12 billion in H1 2021 from N32.02 billion in H1 2020.
- Cash and cash equivalents at end of the period settled at N182.82 billion, a decrease from N263.01 billion in H1 2020.
At the close of trading on Tuesday, the share price of Stanbic IBTC Holdings closed flat at N39.2 per share. Year-to-date it is losing 11.01%. The 52-week high and low prices are N52.9 and N38.5 per share respectively.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
