By Ayomide Otitoju
Stanbic IBTC Holdings Plc reported a significant 71% jump in profit after tax to N116.36 billion in the first half of 2024, up from N67.92 billion in the corresponding period of 2023. The figures were disclosed in the bank’s consolidated and separate financial statements for the six months ended June 30, 2024, recently filed with the Nigerian Exchange Limited.
The bank’s net interest income surged by 54% to N174.30 billion, compared to N72.68 billion in H1 2023, fueled by a 123% rise in interest income, which reached N246.13 billion, up from N110.26 billion in the previous year.
However, the period also saw a 91% increase in interest expenses, which climbed to N71.83 billion from N37.58 billion, attributed to higher interest rates and increased borrowings.
Non-interest revenue rose by 31% to N129.15 billion, bolstered by growth in fee and commission income, contributing to the bank’s overall revenue increase.
The bank faced a substantial rise in impairment losses, with net impairment on financial assets ballooning by 344% to N26.55 billion, up from N5.98 billion in the same period last year.
Operating expenses also surged by 58% to N129.89 billion, compared to N82.34 billion, driven by higher staff costs and other operational expenditures.
Stanbic IBTC revealed that N563 billion had been recognized as off-balance sheet pledged assets, representing 30% of the original transaction value. The transaction, part of a cross-currency interest rate swap agreement with Standard Bank of South Africa and the Central Bank of Nigeria (CBN), involved an exchange of $1 billion for N1.482 billion.
As of June 30, 2024, the bank’s loan commitments stood at N123.99 billion, up from N97.71 billion in December 2023. Stanbic IBTC also noted an expected credit loss of N663 million on off-balance sheet exposures.
In related developments, Stanbic IBTC has announced plans to raise N550 billion through a debt issuance program and a rights issue to support future growth.
