Stanbic IBTC Holdings Plc, has reported that its revenue for the nine months period ended 30 September, 2020 rose to N66.2 billion, up by 19.10 per cent from the N55.6 billion revenue recorded in the same period of 2019.
It also reported an improvement of 4.05 per cent in its gross earnings to N183.3 billion for the period, from N176.15 billion in the corresponding period of 2019.
Stanbic IBTC Holdings, in its interim consolidated and separate statement of profit or loss filed at the NSE revealed that it recorded an 11.22 per cent year on year rise in its profit before tax (PBT) despite the economic uncertainties that befell the financial sector as well as the economy.
A cursory look into the unaudited financial statement by financial analysts further revealed that during the period being reported, Stanbic IBTC Holding’s PAT advanced by 13 per cent year on year, resulting from a lower effective tax rate of 14.3 per cent compared with 21.1 per cent in Q3 2019. Also, the Profit and Loss, non-interest income was up 6 per cent year on year, driven by a 5 per cent year on year increase in fixed income and currency trading income.
However, following an 87 per cent quarter on quarter reduction in loan loss provisions, cost of risk declined to 0.1 per cent during the quarter compared with 0.9 per cent in Q2 2020. Net profit margin rose from 31.5 per cent in 2020 to 36.1 per cent by the close of the third quarter in 2020. Also, the banking group recorded the sum of N244 million as the expected credit loss.
Meanwhile, from the financial report, the bank’s total assets stood at N2.58 trillion and its total equity rose by 21.02 per cent to N365.76 billion. On the other hand, the funding income of the banking group fell by -3 per cent year on year due to the sustained pressure on yields and the subdued interest rate environment.
However, Stanbic IBTC’s asset quality or the non-performing loans (NPL) ratio deteriorated by 30 basis points quarter on quarter to 5.2 per cent as at the end of Q3 2020.
Similarly, the banking group’s shares have on a year to date improved, gaining +7.3 per cent, which is broadly in line with the +6.9 per cent return delivered by the all shares index of the NSE.