Stanbic IBTC records improvement in key metrics in the first quarter

Stanbic IBTC records improvement in key metrics in the first quarter
Dr. Demola Sogunle, Chief Executive Stanbic IBTC
  • Three months unaudited group results for the period ended 31 March 2021


Stanbic IBTC, a member of Standard Bank Group, has announced its financial results for the first quarter ended December 31, 2020.

According the bank’s results realised last week it  gross earnings fell by 26 per cent to N45.7 billion, from N61.4 billion.

The Lender’s profit after tax stood at N11.3 billion, which was a drop by 45 per cent when compared with corresponding period in 2020.

Gross loans and advances was up 16 per cent from N655.3 billion to N762.7 billion as at December 31, 2020, while total assets increased by three per cent to N2.569 trillion as against the N2.486 trillion realised in December 2020.

Commenting on the results, the Chief Executive Stanbic IBTC, Dr.Demola Sogunle, said: “The domestic economy remains quite fragile. Negative real returns prevailed in the first quarter as headline inflation continued on the rise, currently above 18 per cent per cent as of March 2021.

“Economic activities are expected to improve as the authorities take on appropriate actions and business confidence improves. Just recently, in April 2021, the CBN resumed dollar sales to foreign portfolio investors for the first time since December 2020 to clear the backlog of foreign exchange demand.”

According to him, the group’s profitability in Q1 moderated year-on-year due to pressure on trading income activities.

“Operating expenses from regulatory induced charges increased, as well as the continued pressure on risk asset yields. The decline was partly cushioned by the year-on year improvement in net fee and commission revenue as well as an impairment write back of N155 million in Q1 2021 compared to the charge of N1.97 billion in prior year.

“The impairment write back was due to releases and after write-off recoveries achieved during the quarter. Again, the diversity of our earnings proved supportive during the period. Wealth’s profitability improved from prior period and provided succour for the contraction in profitability of the corporate and investment banking and the personal and business banking businesses,” Sogunle said.

Financial highlights, income statement

  • Gross earnings of ₦45.7 billion, representing 26% decrease (Q1 2020: ₦61.4 billion)
  • Net interest income of ₦15.9 billion, down 14% (Q1 2020: ₦18.5 billion)
  • Non-interest revenue of ₦23.1 billion, down 29% (Q1 2020: ₦32.6 billion)
  • Total operating income of ₦38.9 billion, down 24% (Q1 2020: ₦51.2 billion)
  • Profit before tax of ₦12.1 billion, down 50% (Q1 2020: ₦24.4 billion)
  • Profit after tax of ₦11.3 billion, down 45% (Q1 2020: ₦20.6 billion)
  • Cost to income ratio of 69.2% (Q1 2020: 48.4%)
  • Return on average equity (annualised) 11.6%
  • Return on average assets (annualised) 1.7%

Financial position

  • Total assets increased by 3% to ₦2.569 trillion (December 2020: ₦2.486 trillion)
  • Gross loans & advances up 16% to ₦762.7 billion (December 2020: ₦655.3 billion)
  • Non-performing loans increased by 3% to ₦27.2 billion (December 2020: ₦26.5 billion)
  • Non-performing loan to total loan ratio of 3.6% (December 2020: 4.0%)
  • Customer deposits increased by 6% to ₦867.0 billion (December 2020: ₦819.9 billion)
  • Deposit mix improved to 83.3% (December 2020: 82.8%) of current-and-savings accounts deposits to total deposits.

Capital and liquidity

The Group maintained adequate level of capital during the period. The Group’s total capital adequacy ratio closed at 22.7% (Bank: 17.8%), which is significantly higher than the 10% minimum regulatory requirement.The Group maintained a strong and diversified funding base during the first quarter of 2021.

The Group’s liquidity ratio was above the regulatory minimum requirement of 30%, which indicates the Group’s sound position to continue meeting its liquidity obligations in a timely manner.