Stanbic IBTC Holdings has announced its nine months unaudited group results for the period ended 30 September 2018 reporting profit after tax of N59.76 billion, an increase of 59 percent for the corresponding period in 2017.
Speaking on the Group’s performance, YinkaSanni, Chief Executive of Stanbic IBTC Holdings, said:
“Our business continued to thrive in the third quarter of 2018 amid industry-wide headwinds, bearish capital market aided by emerging market sell-off and attendant repatriation of foreign capital.
Our performance shows steady growth in our balance sheet position, sustained improvement in revenue from fees and commissions and trading lines, though at a slower pace against a backdrop of reduced financial market volumes / trades and reduction in fee income rate particularly for our Wealth business due to the implementation of the multi-fund structure.
Nonetheless, we have seen significant improvement in our risk asset portfolio with gross loans and advances up by 14 percent year-to-date while non-performing loans (NPL) portfolio decreased by 39 percent, thereby improving our NPL ratio to 4.7 percent from 8.6 percent in December 2017.
The decrease in non-performing loans is on account of the declassification of some loans following positive outcome on recovery and rehabilitation efforts. This is coupled with strategic decision to write-off some delinquent loans.
The 2 percent decrease in total customer deposits is due to the competitive yield environment and continued drive to reduce cost of funds which resulted in a 25 percent decrease in expensive term deposits”.
“We are focused on delivering end-to-end financial solutions to our customers through our enhanced digital platforms as significant investment is being made to achieve this stride.
“Volume of transactions carried out on our digital platform continues to increase and we are encouraged by the robust transactional volumes from the various platforms.
“The drop in our net interest income is due to lower yield on government securities compared to the same period in 2017 but the sustained growth in loans and advances will douse the impact on net interest income line in the near term. We remain on track to achieve our guidance by the end of the year.
“Our focus for the rest of the year is to maintain the momentum in improving the quality of the asset book and to further grow our non-interest revenue line,” Sanni added.