Stanbic IBTC says it has grown its gross earnings by 41% in the first nine months of 2023.
In the results submitted to the Nigerian Exchange (NGX) Limited, the company also improved its net interest income by 48 per cent to N79.66 billion from N54.0 billion, with the non-interest revenue growing by 36 per cent to N94.4 billion from N69.3 billion, and the total operating income jumping by 41 per cent to N174.1 billion from N123.3 billion.
Furthermore, the improvement in the top line of the financial statements helped the growth in the bottom line as the pre-tax profit expanded by 52 per cent to N69.0 billion from N45.3 billion, while the post-tax profit stretched by 38 per cent to N55.2 billion from N40.0 billion.
Also, the total assets of the organisation increased by 8 per cent to N2.95 trillion from N2.74 trillion in FY 2021, gross loans and advances went up by 23 per cent to N1.17 trillion from N946.25 billion in 2021, while customer deposits increased marginally by 1 per cent to N1.14 trillion from N1.13 trillion.
“We continue to witness growth in our client franchise and key income lines. The group’s profitability increased by 57 per cent QoQ, largely attributable to impressive growth in net interest income and other revenue sources.
“This was supported by lower credit impairment charges and operating expenses when compared with the second quarter. The uplift in net interest income resulted from increase in the volume and yield on risk assets as we sustained our loan growth performance,” the chief executive of Stanbic IBTC, Mr Demola Sogunle, said.
Speaking further, he stated that, “trading revenue grew by 47 per cent QoQ following the increase in trading activities during the third quarter. Sustained focus on cost optimisation led to an 8 per cent QoQ decline in our operating expenses. As such, our cost-to-income ratio improved to 56.1 per cent from 59.9 per cent in the first half of the year and 64.3 per cent in the prior year.”
“We kicked off the third quarter with the implementation of initiatives to deliver top-notch services to our customers by leveraging digital technology. We entered into a partnership to enhance the Stanbic IBTC SME Banking platform by providing seamless payroll and salary management services to SME Banking customers.
“The digital module of the solution is now embedded on Stanbic IBTC’s SME online platform and offers value-added services such as free HR services to SME customers for the first three months, salary payment of remote employees while staying compliant with local laws, provision of financial data with detailed analytics, amongst others.
“We have also seen an increase in the uptake of our customer loyalty programme, PlusRewards which provides exclusive discount offers to Stanbic IBTC card holders at select merchant stores.
“Our Business clients can also sign up for the scheme as merchants and enjoy benefits such as free Stanbic IBTC point of sale (POS) devices, free marketing opportunities as well as access to Stanbic IBTC’s client base. Being a client-focused organisation, this will enable us to strengthen the relationship with our customers,” he added.
Mr Sogunle noted that, “As an Environmental Social and Governance (ESG) driven organisation, we do not relent in achieving our sustainability goals. Thirty-seven of our office locations currently run on solar-powered energy solutions, and we have recycled 6.6 tonnes of waste papers in return for tissue papers year-to-date as we continue to support the global reduction of carbon emissions.
“During the quarter, we disbursed credit facilities of over N504mn to support educational service providers in Nigeria and disbursed about N4.73bn credit facilities to 861 SME clients. We have also modified three additional office locations and 10 offsite ATM locations for accessibility to the physically challenged. Hence, 134 office locations and 97 offsite ATM locations have been modified so far.
“We remain committed to growing our key metrics over the rest of the year and achieving our FY 2022 guidance.”
