Business
Stanbic IBTC Reports 71% Surge in H1 Profit to N116bn
Stanbic IBTC Holdings Plc has announced a remarkable 71% increase in its profit after tax, reaching N116.36 billion for the first half of 2024, up from N67.92 billion in the same period last year.
According to the bank’s financial statements for the six months ending June 30, 2024, the surge in profit was largely driven by a 54% rise in net interest income, which climbed to N174.30 billion from N72.68 billion in H1 2023. This increase was supported by a 123% rise in interest income, reaching N246.13 billion compared to N110.26 billion.
However, interest expenses also saw a significant 91% increase, rising to N71.83 billion from N37.58 billion, reflecting higher interest rates and increased borrowings. Non-interest revenue grew by 31% to N129.15 billion, up from N98.62 billion, bolstered by increased fee and commission revenue.
The bank reported a substantial 344% rise in net impairment losses on financial assets, amounting to N26.55 billion from N5.98 billion. Operating expenses also surged by 58% to N129.89 billion from N82.34 billion, driven by higher staff costs and other operational expenditures.
Stanbic IBTC disclosed that it recognized N563 billion as off-balance sheet pledged assets, representing 30% of the original transaction amount, as part of a cross-currency interest rate swap agreement with Standard Bank of South Africa Limited. The agreement involves an exchange of $1 billion for N1.482 billion with the CBN.
The group’s loan commitments stood at N123.99 billion as of June 30, compared to N97.71 billion at the end of December 2023. The expected credit loss on off-balance sheet exposures was N663 million.
Stanbic IBTC also announced plans to raise approximately N550 billion through a debt issuance programme and a rights issue.
Former Kaduna Central Senator Shehu Sani has criticized the World Bank for worsening Nigeria’s economic difficulties. In a post shared on X, Sani accused the institution of projecting that Nigeria’s hardship would extend for another 15 years before the country could reach a better economic future. He questioned how many Nigerians would be left to enjoy that future, and how many African nations the World Bank has successfully helped to prosperity.
Sani’s remarks follow the World Bank’s latest *Africa’s Pulse* report, which forecasts that the Nigerian Naira will be among the worst-performing currencies in Sub-Saharan Africa by August 2024. The report placed the Naira’s decline alongside that of the Ethiopian Birr and South Sudanese Pound.
Heirs Insurance Group (HIG) recently announced impressive financial results for the 2023 fiscal year, marking significant growth across all key metrics. The Group’s Gross Written Premium (GWP) surged by 59.3%, from N19.9 billion in 2022 to N31.7 billion in 2023. This remarkable performance underscores HIG’s resilience and operational efficiency, further solidifying its position as one of Nigeria’s fastest-growing insurance firms.
Heirs General Insurance (HGI) saw a 77% increase in GWP, reaching N12 billion in 2023. HGI’s profit before tax (PBT) also rose by 203%, reflecting the company’s effective cost management. Similarly, Heirs Life Assurance (HLA) reported a 71% GWP increase and a staggering 395% rise in PBT. Both companies have demonstrated a strong commitment to customer satisfaction, disbursing billions in claims.
Beyond financial success, HIG actively engages in corporate social responsibility (CSR) projects, contributing over N100 million to education, community development, and financial literacy. With plans for future expansion and innovation, HIG is poised to remain a key player in Nigeria’s evolving insurance market.
Federal Capital Territory (FCT) Minister, Nyesom Wike, has called on Nigerians to fulfill their tax obligations, emphasizing that government revenue is essential for delivering social services. Wike made this appeal during the inaugural Abuja Business and Investment Summit, held in Abuja on Wednesday.
Speaking on the summit’s theme, “Optimising Investment Through Partnerships,” Wike stressed the importance of collaboration to generate investment opportunities. He dismissed the misconception that the government does not need revenue, explaining that taxes are crucial for funding public services.
Wike reiterated that both investors and the government must benefit from such partnerships, ensuring that both parties “go home smiling” through a fair exchange of services and taxes.
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