Stanbic IBTC Holdings Reports 71% Surge in Profit to N116.36bn for H1 2024

Stanbic IBTC Holdings Reports 71% Surge in Profit to N116.36bn for H1 2024

Stanbic IBTC Holdings Plc reported a notable 71% rise in profit after tax for the first half of 2024, reaching N116.36 billion, up from N67.92 billion during the same period last year. This was disclosed in the bank’s consolidated financial statements submitted to the Nigerian Exchange Limited for the six months ending June 30, 2024.

The bank’s net interest income saw a significant increase of 54%, reaching N174.30 billion, compared to N72.68 billion in H1 2023. This growth was fueled by a 123% surge in interest income, which climbed to N246.13 billion from N110.26 billion the previous year.

Conversely, interest expenses rose sharply by 91% to N71.83 billion, up from N37.58 billion, driven by higher interest rates and increased borrowings. Non-interest revenue grew by 31% to N129.15 billion, from N98.62 billion, supported by stronger fee and commission income along with other revenue sources.

However, the bank faced a dramatic 344% increase in net impairment losses on financial assets, which soared to N26.55 billion from N5.98 billion. Operating expenses also surged by 58% to N129.89 billion, up from N82.34 billion, mainly due to higher staff costs and other operational expenses.

Stanbic IBTC also reported N563 billion in off-balance sheet pledged assets, representing 30% of the original transaction value, as part of a cross-currency interest rate swap with Standard Bank of South Africa Limited. This swap involved exchanging $1 billion for N1.482 billion with the Central Bank of Nigeria (CBN).

The bank's loan commitments were N123.99 billion as of June 30, 2024, up from N97.71 billion at the end of December 2023.

Additionally, Stanbic IBTC Holdings Plc plans to raise around N550 billion through a debt issuance program and a rights issue to bolster its capital base and support future growth.