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Saturday, 20 April 2013

Stanbic IBTC reports 642.1% profit growth in 2012, 20% in Q1 2013



By Ebenezer Ademola
17:50:56pm GMT
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WorldStage Newsonline-- The Nigerian Stock Exchange (NSE) on Friday released the fourth quarter (Q4) 2012 and first quarter (Q1) 2013 results of Stanbic IBTC Holdings simultaneously with profit after tax (PAT) after minority interest in Q4 put at N3.423 billion and N12.816 billion in full year at 642.1 per cent growth, while Q1 2013 PAT was N3.8 billion at 20 per cent y/y growth.
Interest income rose 69.6 per cent in Q4 to N15.283 per cent against the same quarter in 2011 which translated to N57.818 billion in full year 2012 at 63.2 per cent growth; interest expense stood at N8.330 billion in Q4, an improvement of 167.2 per cent while full year stood at N24.264 billion, a 211.6 per cent improvement.
The bank recorded non- interest income of N12.538 billion, a growth of 83.1 per cent in Q4 out of N33.856 billion in full year at 22.6 per cent growth; loan provisions of N3.820 billion in Q4 was 42344.4 per cent increase y/y out of a total of N6.895 billion at 105.9 per cent growth in full year.
For Q1 2013 the profit before provisions of N20.1 billion advanced 37 per cent y/y and more than offset marked increases in loan loss provisions and a 23 per cent rise in opex to boost PBT by 38 per cent y/y.
According to analysts at FBN Capital, the main driver behind Stanbic’s better-than-expected results was the non-interest income line which grew by 85 per cent y/y.
 Stanbic’s financials show that trading revenue within the non-interest income line grew by 268 per cent y/y to N4.9 billion, equivalent to 59 per cent of net interest income.
The analysts noted that the notable movements on the balance sheet are a continued aggressive growth in deposits ( 19 per cent q/q) relative to net loans ( 1.1 per cent q/q).
 For the full year 2012, Stanbic grew its net loans by 3.7 per cent y/y, but deposits by 24 per cent y/y. Consequently, the bank’s loans-to-deposit ratio has fallen from over the 80-100% range during 2012 to 64%, boosting its liquidity position in the process. 
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