Stanbic IBTC Holdings Posts a remarkable 108% growth in pre-tax profit in H1

Stanbic IBTC reported its 2023 Half-year results showing pre-tax profits grew by 107.58% year on year, reaching N82.985 billion.

Key highlights H1 2023 vs. H1 2022:

Gross earning; N213.334 billion +58.18% YoY
Interest Income; N110.26 billion +61.56% YoY

Interest Expense; N37.575 billion +109.97% YoY
Net interest income; N72.684 billion +44.35% YoY
Non-interest income; N98.618 billion +56.64% YoY
Net income on fees and commission N51.154 billion +12.27% YoY
Trading revenue; N44.723 billion +174.04%

Income before credit impairment charges; N171.302 billion +51.18% YoY
Net impairment loss on Financial Assets N5.979 +9.37% YoY
Income after credit impairment charges N165.323 +53.30% YoY
Profit for the period N67.919 billion +121.46% YoY.
Earnings per share 512 kobo +126.55% YoY

Loans and advances to customers N1.656 trillion +37.44%.
Cash and Cash equivalents N1.015 trillion +52.72%
Total Assets N4.451 trillion +46.95%.
Customers’ deposits N1.638 trillion +31.54%.

Insights: The substantial growth in pre-tax profit can be attributed to the significant growth in gross earnings, driven by growth in net interest income, non-interest income, and trading revenue.

Particularly, the rise in interest income and trading revenue seems to have been driven by increasing interest rates. The MPR climbed 5.5 basis points, going from 13% in June 2022 to 18.5% in June 2023, positively impacting interest-related earnings.