Stanbic IBTC Holdings recorded mixed performance in the first quarter of 2019 as marginal growth in the top-line compressed into a decline in the bottom-line.
Interim report and accounts of the financial services group for the three-month period ended March 31, showed that gross earnings increased to N58.69 billion in first quarter 2019 as against N57.39 billion in comparable period of 2018. Profit before tax however dropped from N26.69 billion to N23.51 billion, while profit after tax slipped from N23.07 billion to N19.15 billion. Earnings per share consequently dropped from N2.23 to N1.81.
The results showed that the group’s liquidity position remained robust. Liquidity ratio increased to 130.06 per cent compared with the 110.68 per cent achieved in December 2018, well above the regulatory minimum requirement of 30 per cent.
Stanbic IBTC Holdings Plc Chief Executive Mr Yinka Sanni said the slowdown in economic activities as well as socio-political environment impacted the first quarter results.
According to him, the operating environment in the first quarter of the year was challenging, evidenced by the slowdown in economic activities that were impacted by the socio-political environment leading to muted client activity. These factors affected the growth pace of the overall business volumes and earnings.
He noted that the group achieved a resilient performance, despite the challenging environment, expressing optimism that the group is well positioned to take advantage of economic activities as the macroeconomic position improves.
“We will continue to leverage our universal financial services capability to ensure delivery on our guidance for 2019,” Sanni said.
Stanbic IBTC Holdings had recorded considerable growths across all key performance indicators in 2018 with the net profit rising by 54 per cent to N74.4 billion.
Key extracts of the audited report and accounts for the year ended December 31, 2018 showed that the group grew its top-line earnings to N222.4 billion in 2018 compared with the N212.4 billion in 2017. Profit before taxation rose by 44 per cent to N88.2 billion as against N61.2 billion while profit after tax rose by 54 per cent to N74.4 billion in 2018 as against N48.4 billion in 2017.
The balance sheet showed that group’s total assets grew by 20 per cent to N1.66 trillion in 2018 compared with the N1.39 trillion in 2017.
Customer deposit grew by seven per cent to N807.7 billion from N753.6 billion. Gross non-performing loans decreased by 50 per cent to N17.7 billion in 2018 compared with N35.3 billion.
This decrease impacted positively the gross non-performing loan to total loan ratio, which improved to 3.9 per cent, well below the regulatory threshold of 5.0 per cent and 8.6 per cent recorded in 2017.
The non-performing loans figure became more impressive when viewed against the 14 per cent increase in gross loans and advances from N403.9 billion in 2017 to N458.9 billion in 2018.