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.
