StanbicIBTC Holdings Plc has recorded a 57.5 percent increase in non-interest revenue in the first half of 2023.
According to BusinessDay’s findings, the bank’s non-interest revenue which comprises fees and commission income amounted to N51.15 billion in the first half of 2023 from N45.56 billion recorded in the same period of 2022.
Non-interest revenue, often termed ‘fee income,’ includes earnings derived from activities beyond the primary role of banks as intermediaries for deposits and loans.
The growth in fee income was propelled by an increase in asset management, which contributed N33.35 billion to the non-interest revenue during H1 2023, up from N28.28 billion in H1 2022.
According to analysts from CSL Research, “Net Fee and Commission was up 12.3 percent y/y and 5.2 percent q/q mainly driven by growth in asset management fees (Up 17.9 percent y/y) to N33.4 billion in H1 2023.”
Its other income business grew by 172.9 percent in the first half of 2023.
Earnings per share increased to N512/share in the first half of 2023 from N226/ share recorded in the same period of 2022.
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Analysts at CardinalStone reported that the spike in its earnings per share reflects the combined impact of higher trading and interest income streams.
The other income, which included income from life insurance activities, trading revenue and other revenue amounted to N47.46 billion in the first half of 2023, a 172.9 percent increase.
Trading Revenue rose by 52.1 percent to N44.7 billion on the back of booked fixed income and currencies, a likely effect of the currency devaluation on the bank’s net open position.
The company’s net interest income also saw a rise of 44.35 percent during the reviewed period, amounting to N72.68 billion, attributed to interest income driven by the successful interest rate increase by the Central Bank.
Interest income surged to N110.26 billion, marking a 61.6 percent year-on-year increase.
“Stanbic’s H1 2023 audited numbers showed a 61.6 percent y/y increase in Interest Income to N110.3bn driven by improved yields on risk assets,” CSL added in its statement.
Other operating expenses grew by 22.3 percent to N52.83 billion in the first half of 2023 from N43.19 billion recorded in 2022.
Profit for the period amounted to N67.91 billion from N30.67 billion recorded in the same period of 2022, a 121.26 percent increase.
Total equity and liabilities amounted to N4.45 trillion for the period.
However, the net cash flows from operating activities recorded a decline of 13.4 percent amounting to N159.7 billion, reflecting the cash-generating capabilities of the company’s core business activities.
Net cash flows (used in)/ from investing activities recorded an increase in loss to N148.66 billion in the period under review from a loss of N90.6 billion recorded in the same period of 2022.
Net cash flows (used in)/ from financing activities recorded a loss of N48.67 billion in the first half of 2023 from a profit of N2.98 billion recorded in 2022.
Cash and cash equivalents at the end of the period amounted to N702.84 billion from N313.68 billion recorded in the corresponding period of 2022.