Stanbic IBTC Records N84.2bn Pre-tax Profit In Q2 2024

SoStanbic IBTC Plc has reported an extraordinary second-quarter performance, with pre-tax profits soaring by 80.4 percent to an unprecedented N84.2 billion for the three months ending in June 2024.

This achievement marks the highest quarterly pre-tax profit ever recorded in the company’s history.
The strong quarterly performance has driven Stanbic IBTC’s half-year pre-tax profit to N147 billion, significantly surpassing the N82.9 billion reported for the same period in 2023. With these results, the bank holding company is well on its way to achieving the N200 billion pre-tax profit milestone by the end of 2024.
Stanbic IBTC’s impressive second-quarter results were bolstered by strong growth across various financial metrics. The bank reported a staggering N97.3 billion in net interest income, representing a 168.3 percent increase from the previous quarter. This surge was driven by a substantial rise in interest income from loans to customers and investments. Its net interest after impairments stood at N77.9 billion, reflecting a 32 percent increase, highlighting the bank’s ability to maintain solid returns even after accounting for potential loan losses.
Also, Stanbic IBTC’s operating income climbed to N145.7 billion, a 66.4 percent jump, underscoring the bank’s robust revenue-generating capabilities.
The bank managed its costs effectively, with operating expenses increasing by 50.3 percent to N61.4 billion, a relatively moderate rise given the significant growth in income.
The bank’s loan portfolio grew by 30.3 percent, reaching N2.17 trillion, reflecting increased lending activity amid a higher interest rate environment. Stanbic IBTC’s total deposits rose by 24.9 percent to N2.89 trillion, indicating strong customer confidence and a growing deposit base.
The bank’s total assets surged by 37.1 percent to N6.1 trillion, showcasing the institution’s expanding financial footprint. Net assets grew by 29.6 percent to N584.5 billion, further solidifying the bank’s financial position.
While earnings per share (EPS) nearly doubled to N6.4, compared to N3.5 in the previous year, reflecting the bank’s profitability and value creation for shareholders.
Stanbic IBTC’s stellar performance in the second quarter was primarily driven by a surge in interest income from loans to customers and investments. Interest income from loans and advances to customers more than doubled, rising from N91.1 billion in the first half of 2023 to N183.1 billion in the same period in 2024. This was complemented by a significant increase in interest income from investments, which soared from N16.7 billion to N56.1 billion.
The bank also saw a major boost in commission and fees income, which rose to N82.9 billion in the first half of the year, up from N51.1 billion in the corresponding period of the previous year. Notably, Stanbic IBTC earned N47.2 billion from asset management fees and an additional N11.7 billion from brokerage and financial advisory fees.
Despite a slight decline in income from ‘fixed income and currencies,’ which dropped to N39.6 billion from N44.7 billion a year earlier, the bank’s overall financial performance remained robust.
Stanbic IBTC’s exceptional performance was met with a positive response from the market, as its share price closed at N58.95 per share, up 3.6 percent in mid-day trading. Reflecting its confidence in continued profitability, the bank declared an interim dividend of N2 per share, rewarding its shareholders for their continued support.
As Stanbic IBTC continues to capitalise on a favourable interest rate environment and strong customer engagement, the bank is poised for further growth, setting new benchmarks in its financial performance. With its record-breaking quarterly results and a clear path to achieving its ambitious full-year targets, Stanbic IBTC remains a key player to watch in Nigeria’s financial sector.