Lagos, Nigeria – Stanbic IBTC Holdings Plc has posted a 71% jump in profit after tax, rising to N116.36 billion in the first half of 2024, up from N67.92 billion recorded in the same period last year. This impressive performance is outlined in the bank’s consolidated financial statements for the six months ending June 30, 2024, filed with the Nigerian Exchange Limited.
The bank’s net interest income surged by 54% to N174.30 billion, up from N72.68 billion in H1 2023. This growth was primarily driven by a 123% increase in interest income, which climbed to N246.13 billion from N110.26 billion. However, interest expenses also rose by 91%, reaching N71.83 billion, compared to N37.58 billion last year, largely due to higher interest rates and increased borrowing.
In addition to its interest income, Stanbic IBTC saw a 31% increase in non-interest revenue, which grew to N129.15 billion, supported by higher fees, commissions, and other income sources. However, net impairment losses on financial assets ballooned by 344% to N26.55 billion, up from N5.98 billion.
Operating expenses also saw a significant rise, growing by 58% to N129.89 billion, driven by higher staff costs and other operational expenditures.
The bank’s off-balance sheet assets amounted to N563 billion, representing 30% of a cross-currency interest rate swap agreement with Standard Bank of South Africa Limited and the Central Bank of Nigeria. Under this agreement, $1 billion was exchanged for N1.482 billion.
Stanbic IBTC’s loan commitments grew to N123.99 billion as of June 30, 2024, up from N97.71 billion in December 2023, with the expected credit loss on off-balance sheet exposures rising slightly to N663 million from N619 million.
In a related development, the bank disclosed plans to raise about N550 billion through a debt issuance programme and a rights issue, signaling its intent to bolster capital amid its strong financial performance.
This growth, marked by rising interest income and operational expansions, reflects Stanbic IBTC’s resilience despite Nigeria’s challenging economic environment.