Stanbic IBTC Holdings’ operating income has surged 51 percent which led CardinalStone analysts’ forecast of earnings to cross the N100 billion mark in the full year of 2023.
The holding company saw its net operating income jump to N171.3 billion in H1 2023 from N113.31 billion in the same period of 2022.
“In the full year of 2023, Stanbic IBTC’s earnings will likely cross the N100 billion mark to cumulative N125.5 billion based on the improvement in operating income,” analysts at CardinalStone said in a report.
Demola Sogunle, chief executive of Stanbic IBTC Holdings while commenting on the results, said: “The first half of 2023 was an eventful one for us as an organisation within the Nigerian operating environment.
“Events such as the general elections and cash scarcity led to relatively slower business activities at the beginning of the year, causing the Stanbic IBTC Bank Purchasing Manager Index (PMI) to print below 50 index points,” he said.
He stated that business activities however picked up in the second quarter, with the PMI moved back above 50 points in April 2023 and closed at 53.2 in June 2023, following the improvement in access to cash, increase in customer demand and business expansion.
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“We reported significant growth in our key income lines during the period under review. The group’s profitability increased by over 100 percent year-on-year (YoY) driven by growth across our revenue streams.
“Interest income grew by 62 percent YoY, mainly due to higher yield and volume of loans and investments, which aligns with our efforts to support our clients through loan offerings and investment opportunities,” Sogunle said.
Stanbic IBTC Holdings’ customer deposit stood at N1.64 trillion in H1 2023, indicating a 32 percent growth from N1.25 trillion recorded in the full year of 2022 with increases across deposit classes.
The deposits in current accounts grew by 40 percent, term deposits grew by 28 percent, savings account deposits grew by 19 percent, and call deposits account increased by 3 percent.
Stanbic IBTC Holdings liquidity ratio closed at 101.22 percent in H1 2023 which is higher than the regulatory minimum of 30 percent.
The holding company’s profit after tax increased to N67.92 billion in H1 2023, indicating 121 percent growth from N30.67 billion in the same period of 2022.
Similarly, profit before tax increased to N82.99 billion in H1 2023, up 108 percent from N39.98 billion in a similar period of 2022.
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However, the net cash flows from operating activities dropped to N159.72 billion from N184.42 billion while net cash flows used in investing activities stood at a negative N148.66 billion from a similar negative N90.6 billion.
Net cash flows used in financing activities stood at a negative of N48.67 billion in the first half of 2023 from a positive of N2.99 billion in the same period of 2022 while cash and cash equivalents at the end of the period amounted to N702.84 billion from N313.68 billion.
Trading revenue increased to N44.72 billion from N16.32 billion while other income increased to N3.25 billion from N938 million.
Total operating expenses increased to N82.34 billion from N67.87 billion during the period. Basic earnings per ordinary share grew to N5.12 per share in H1 2023 from N2.26 per share in the similar period of 2022.
Equity attributable to ordinary shareholders increased to N443.25 billion in June 2023 from N339.66 billion in December 2022.
Stanbic IBTC Holdings Plc launched its pioneering fintech subsidiary, called Zest, to revolutionise the payment sector.
During the launch event in Lagos, Basil Omiyi, the group chairman of Stanbic Holdings speaking on the company’s vision, said, “We aspire to become the leading end-to-end financial services provider for businesses and individuals in our country and region.”
Omiyi stressed the strategic focus on fintech, emphasising the need for a solution-driven orchestrator platform that invited partners to create a comprehensive ecosystem.
“We expect the launch of the bank’s FinTech subsidiary— Zest Payment Limited— in Q4’23 to support its existing digital banking strategy, which is poised to grow transactional volumes by improving client experience on its digital platforms,” CardinalStone analysts said in a note.
