Stanbic Holdings IBTC reported a profit increase of more than two-fifths in 2022 as earnings drew considerable strength from the financial services group’s revenue, which hit a record high for the year, its unaudited financial statements showed Monday. .
The lender’s shares were up slightly 0.15 percent at N33.55 a unit in Lagos after the report was released.
Gross profit was N287.9 billion, up from N206.4 billion the year before, with the bulk coming from interest income, particularly interest on loans and advances to customers.
The local unit of the largest bank in Africa standard bank earned N91.4 billion in net fees and commissions, up 10.3 per cent from what it reported for the same period in 2021, and had N58.6 billion of that sum provided by asset management fees coming from its pension fund arm, Stanbic IBTC Pension Administrators.
The subsidiary, one of the group’s eight divisions, is the largest pension fund manager in Nigeria with N3.5 trillion assets under management.
Stanbic IBTC Holdings saw a 62.5 per cent drop in revenue from life insurance activities, but there was a big improvement in business revenue, which stood at N34.7 billion compared to N13.3 thousand. million reported the previous year.
Other income totaled 1.2 billion naira, while a negative figure of -566 million naira was recorded for the fiscal year 2021.
Of its revenue, the financial institution set aside 10.3 billion naira to cover loans whose repayment chances have been hampered by recurring defaults, while it earned 1.5 billion naira last year as repayments on such loans.
“Operating conditions for (Nigerian) banks will weaken in 2023 due to high inflation, rising interest rates and a shortage of US dollars, in addition to continued regulatory intervention and the potential for disruption caused by the general election. February”, Fitch, a global rating. agency, he said last Wednesday.
“We expect impaired loan ratios to rise moderately as borrowers face challenging macro conditions,” he added.
Pre-tax profit more than halved to N100.6 billion, while profit for the period under review rose to N81.1 billion from N57 billion, indicating an increase of 42.3 per cent .
Stanbic IBTC Holdings is in talks with regulators to get the green light to set up a payments unit to be known as Stanbic IBTC Financial Services Limited.