Stanbic IBTC Bank grows Q3 2020 profit by 19%, on revenue from trading

November 4, 2020 - 6:22 PM

Stanbic Bank Plc, the bank that places its customers at the center of everything it does. Recently released it nine month ended September 2020 unaudited consolidated Financial Statement to the public.

The bank’s Q3 2020 results published by the Nigerian Stock Exchange which shows Gross Earning Year-on-Year (YonY) growth of 4 percent to N183.3 billion also revealed that the Profit After Tax (PAT) which grew by 19 percent YonY was on the strength of the bank’s robust 20 percent increase in Non-Interest Income. Trading Revenue growth of 63% was the major driver of the Non-Interest income line as Net Fee and Commission Income decline marginally by 1 percent YonY.

Net Interest Income also declined by 4 percent YonY despite a YonY growth of 6 percent in Earning Asset (Customer Loan and Advances). This is because of the general drop-in rates which affected earnings on Loans to both Customers and other Banks as well as interest realizable on Investments by the bank in Q3 2020.

The growth in Trading Revenue was also able to save the bank’s net position in spite of the over N6 billion growth in Credit Impairment charges made by the bank in the 9 months period ended September 2020 compared to the corresponding period of 2019.

Here are the other highlights of the H1 2020 results released by Stanbic IBTC Bank Plc

Income Statement.

Gross Earning of N183.3 billion, up by 4% YonY, Sept 2019 – N176.2 billion
Net-interest income of N56.3 billion, down by 4% YonY, Sept 2019 – N58.7 billion
Non-Interest Income up by 20% to N98.5 billion YonY, Sept 2019 – N81.9 billion
Net Impairment Charge for Credit Losses of N6.99 billion, Sept 2019 – recoveries of N90 million
Operating Expenses of N70.9 billion down 1% YonY, Sept 2019 – N71.6 billion
Profit Before Tax up 11% YonY to N76.9 billion, Sept 2019 – N69.11 billion
Profit After Tax for the 9-month period up by 19% YonY to N66.2 billion from N55.6 billion

Statement of Financial Position

Total Assets up 37% year to date (ytd) to N2.6 trillion from N1.9 trillion in Dec 2019
Loans and Advances to Customers up 6% ytd to N564.7 billion from N532.1 billion
Deposits from Customers up 18% ytd to N751.8 billion from N637.billion

The Balance Sheet size of Stanbic IBTC Bank had a 9-month impressive growth for the period ended 30 September 2020. Total Assets grew 37%. Loan and Advances to Customers was up by 6%, and Deposit from Customers was also up by an impressive 18% in the 9-month period. Total Equity grew as well by 21% to close Q3 2020 at N365.8 billion.