From N67.92 billion in the previous year to N116.36 billion in the first half of this year, Stanbic IBTC Holdings Plc’s profit after tax increased by 71%.
This was disclosed in the bank’s recently filed with the Nigerian Exchange Limited consolidated and separate statements of profit or loss for the six months ended June 30, 2024.
The bank’s interest income increased by 123% to N246.13 billion from N110.26 billion in H1 2023, accounting for a 54% increase in net interest income from N72.68 billion in H1 2023.
In the period under review, Stanbic IBTC also experienced a 91 per cent increase in interest expense, which climbed to N71.83bn from N37.58bn due to higher interest rates and increased borrowings.
In comparison to N98.62 billion the year before, non-interest revenue jumped by 31% to N129.15 billion. This growth was fueled by higher fee and commission income as well as other sources of income that added to the overall revenue enhancement.
Net impairment losses on financial assets for the bank surged by 344% to N26.55 billion from N5.98 billion.
Aside from that, operating expenses increased by 58% to N129.89 billion from N82.34 billion due to increased labor costs and other operational expenses.
N563 billion, or 30% of the initial transaction amount, had been recognized as off-balance sheet pledged assets, according to Stanbic IBTC.
It further stated that Stanbic IBTC and Standard Bank of South Africa Limited had a cross-currency interest rate swap arrangement in place that included the transaction.
The agreement calls for exchanging $1 billion with the CBN for N1.482 billion.
It was mentioned that the loan commitments of Stanbic IBTC Group were N123.99 billion as of June 30 and N97.71 billion as of the end of December of the previous year.
A sum of N563 billion has been identified as off-balance sheet pledged assets. This amounts to 30% of the initial transaction that Standard Bank of South Africa Limited relinquished to Stanbic IBTC Bank under a Cross-Currency Interest Rate Swap agreement with CBN, which involved exchanging $1 billion for N1.482 billion.
“As of 30 June 2024, the group had loan commitments amounting to N123.99bn (Dec 2023: N97.71bn) in respect of various loan contracts. It stated that the anticipated credit loss on the off-balance sheet exposures is N663 million (December 2023: N619 million).
According to the reports, Stanbic IBTC Holdings Plc has revealed plans to raise about N550bn through a debt issuance programme and a rights issue.
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