Source: zoominfo.com, September 13, 2017
Stanbic IBTC Holdings Plc has announced its audited financial statements for the year ended 31 December 2016. The result showed the group’s profit after tax increased by 51 per cent from N18.90 billion earned in 2015 to N28.52 billion in 2016.
This showed that the bank has cleared a backlog of financial reports occasioned by restrictions imposed by the Financial Reporting Council of Nigeria (FRC). The 2015 audited financial statements had been issued on Tuesday, March 7, 2017 following the resolution of the dispute with the FRC.
At its 5th annual general meeting held on September 12, 2017 in Lagos, the Group reported a total income of N126.05 billion for the period under review, representing an increase of 25 percent over the N100.65 billion achieved in 2015.
This was largely due to an increase in interest income and fees and commissions. Also, the group’s net interest income increased by 32 per cent from N43.86 billion in 2015 to N57.86 billion in 2016, while non-interest revenue increased by 20 per cent to N68.19 billion, from N56.79 billion in 2015.
Chief Executive, Stanbic IBTC Holdings Plc, Yinka Sanni, said despite very challenging macro-economic conditions, the institution remains in very sound financial shape, as shown in the 2016 performance and the 2017 half year result.
“Our business grew despite the adverse macroeconomic environment, withstanding the economic headwinds through a disciplined approach that leveraged on innovation and technology to create value for our customers and stakeholders in a cost efficient manner. The fundamentals of our business remain strong and as we purposefully execute our strategy we are optimistic that we will continue to improve,” Sanni said.
The group’s total assets grew by N115.96 billion or 12 percent from N937.56 billion to N1.053.52 trillion at the end of 2016.
The bank’s deposits from customers increased by N67 billion or 14% from N493.51 billion to N561.0 billion at the end of 2016.
“The Stanbic IBTC brand remained strong and we were able to mitigate the heightening legal and regulatory risk environment. In the course of the year, we reached a settlement with the Financial Reporting Council of Nigeria and got final approval for the release of our 2015 results. We maintained our dominance across our key businesses and made significant progress in our Personal and Business Banking business. The addition of the insurance brokerage business in 2016 further increased our capacity to deliver end-to-end financial solutions to our customers,” he added.
Sanni emphasized that the institution remains on track to maintain its long-term strategic growth and profitability objectives by prioritising asset quality through diligent and systematic approach to risk management.
Stanbic IBTC had in 2012 adopted a holding company structure, in keeping with the Central Bank of Nigeria’s directive. Under the structure, the subsidiaries of Stanbic IBTC Holdings Plc are Stanbic IBTC Bank, Stanbic IBTC Pension Managers Limited, Stanbic IBTC Asset Management Limited, Stanbic IBTC Trustees Limited, Stanbic IBTC Capital Limited, Stanbic IBTC Stockbrokers Limited, Stanbic IBTC Insurance Brokers Limited, Stanbic IBTC Ventures Limited and Stanbic IBTC Investments Ltd. Stanbic IBTC Nominees Nigeria Limited and Stanbic IBTC Bureau de Change Limited are the only subsidiaries of Stanbic IBTC Bank.
The adoption of a holding company arrangement has allowed the group to keep its businesses and consolidate the strength and expertise of the different business units, enhancing the ability to drive future growth. The strategy has broadened the scope of services provided and steadily nudging it towards the goal of becoming the leading end-to-end financial solutions provider in the Nigerian market.
At the event, Professor Fabian Ajogwu was elected an independent non-executive director, while Basil Omiyi and Ballama Manu were re-elected non-executive directors. Omiyi, who was appointed to the Board in March 2015, had emerged the Chairman in April 2017 following the resignation of Atedo Peterside, the founding managing director and chairman.