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Stanbic IBTC Holdings Plc posts N40bn profit in Q3 2021 following new organizational structure

Stanbic IBTC Holdings Plc, a member of Standard Bank Group, has reported a profit after tax of N39.9 billion for the nine months ended September 30, 2021.

According to the unaudited financial statements submitted to the Nigerian Exchange Limited, the profit after tax stood at N66.2 billion in the comparable period of 2020.

The profit before tax stood at N45.3 billion during the period under review from N76.9 billion in 2020, a dip of 41 percent.

Dr. Demola Sogunle, Chief Executive, Stanbic IBTC Holdings PLC

A further breakdown of the report showed that gross earnings dropped to N146.6 billion in 2021 from N183.3 billion in 2020, while the Group’s total operating expenses rose by 12 percent from N70.85 billion in 2020 to N79.35 billion in 2021.

Total assets increased to N2.749 trillion in 2021, from N2.486 trillion in the same period of lat year, represent an improvement of 11 percent. Non-performing loans increased by eight percent, from N26.5 billion in 2020 to N28.7 billion in 2021.

The Chief Executive of Stanbic IBTC, Dr. Demola Sogunle commenting on the Bank’s results said: “We saw further improvement in key income lines in the third quarter when compared with the second quarter. Both net interest income and non-interest revenue grew quarter-on-quarter driven by increases in interest income and trading revenue while operating expenses moderated due largely to the absence of the AMCON levy recognition in the third quarter of 2021.”

“The increase in interest income arose from an increase in volume and average yield of loans and investments. Trading revenue growth, on the other hand, resulted from the increase in the volume of trading activities.”

“Customer loans continued to grow in line with trend from the prior quarters and grew further by eight percent quarter-on-quarter as we continued to support our clients. This was funded by growth in customer deposits, which increased by 14 percent quarter-on-quarter, thereby exceeding the N1 Trillion mark”.

Wole Adeniyi, Chief Executive, Stanbic IBTC Bank

“We mentioned during our last results’ conference call, that the Group is undergoing a future-ready transformation, that is, transitioning from a product/service focus to a Client segment led organization effective August 2021. Accordingly, we present to you our very first set of financial results reported in line with this new structure. Our new segments include Wholesale Clients (formerly known as Corporate and Investment Banking), Consumer and High Net-worth Clients (formerly known as Personal Banking), Wealth and Investment Customers, and Business and Commercial Clients (formerly known as Business Banking). The Wholesale Clients segment is responsible for managing large-scale corporate relationships. The Customer and High Net-worth Clients segment are responsible for managing consumer, affluent client relationships and the service channels through which we reach these clients while the Business and Commercial Clients Segment is responsible for managing business-to-business relationships as well as related service channels.”

“Thus, in line with our core value of delivering value to our shareholders, the restructuring will advance the execution of our digital business transformation and enable us to achieve accelerated future readiness for the business and growth through effective mining of the client ecosystems propelled by a future-ready workforce. We continue to make progress in supporting the financial needs of our communities in the third quarter of 2021. Investing to advance tree planting exercise, youth, and women empowerment through donations, sponsorships and partnerships, library upgrade and renovation, hospital unit refurbishment, amongst others.”

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