Five takeaways from Stanbic IBTC’s half-year financial report
Stanbic IBTC Holdings Plc, a member of Standard Bank Group, recently released its 2021 second quarter audited financial results for the period ended June 30th, 2021.
Below are some of the highlights of the financial statement that was released to its shareholders and the investing public through the Nigerian Exchange Group (NGX) on September 1.
Half-year profit hits lowest in 4years
Stanbic IBTC reported its lowest profit in four years in the first half of 2021 as income and non-income interests declined.
As a result, the profit after tax of the financial services company was down by 50.13 percent to N22.54 billion in the six months to June 2021 from N45.20 billion reported in the corresponding period of 2020.
The performance reported by the holdings company was on the back of a 12.44 percent drop in its net interest income to N32.88 billion in the review period of 2021 from N37.55 billion reported in the comparable period of 2020.
This was due to a decline in the interest income to N44.2 billion from N55.1 billion a year ago as a result of a significant loss in interest on investments to N9.6 billion compared to N21.6 billion in the same period of 2020. This was despite the increase in interest on loans and advances to customers to N34.2 billion from N32.6 billion.
The company’s non-interest income was also down in the review period. From N69.80 billion recorded in June 2020, the earnings from the Holdings non-core activities declined to N45.91 billion in the corresponding period of 2021.
A breakdown of the half-year financial statement of Stanbic IBTC Holdings revealed that the Standard Bank subsidiary recorded a 14.07 percent increase in its operating expense to N55.37 billion in June 2021 from N48.54 billion in the comparable period of the previous year. Of the total operating expense reported in the review period, staff costs swallowed N20.2 billion in the first six months of 2021 as against the N19.9 billion in 2020. Other operating expenses gulped N35.2 billion, lower than N28.6 billion a year ago.
Earnings Per Share
The Holdings earnings per share was, therefore, down 54.18 percent in the review period to N192 in 2021 from N419 in 2020.
However, the directors of the Holding Company recommended the approval of an interim dividend of 100 kobo per share (30 June 2020: 40 kobo per share) for the period ended 30 June 2021.
The proposal was contained in the financial statements of the lender released to the Nigerian Exchange (NGX) Limited on Monday.
The cash reward to its shareholders is coming despite a decline in the company’s top-line and bottom-line as the gross earnings dipped by 26.06 percent to N93.6 billion from N126.6 billion in the first half of last year.
Commonly referred to as Stanbic IBTC, Stanbic IBTC Holdings is a financial service holding company in Nigeria with subsidiaries in Banking, Stock Brokerage, Investment Advisory, Asset Management, Ventures, Investor Services, Pension Management, Trustees and life Insurance businesses.