Stanbic IBTC reports 74% PAT growth in 2023, to pay N28.5 billion final dividend

Stanbic IBTC has reported a net profit of N140.6 billion in 2023, marking a 74% growth from the N80.7 billion posted in 2022.

Even as the group’s gross earnings hit N461.1 billion in FY 2023, representing a 62% increase from the N284.9 billion gross earnings posted in 2022.  

The group’s major source of earnings was interest income which hit N270.6 billion, marking a 77% increase from the N152.7 billion reported in 2022. The group also recorded N110.3 billion in revenue from fees and commissions in 2023, representing a 21% increase from the N91.1 billion posted in 2022. 

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Key Highlights (FY 2023 vs FY 2022)  

  • Gross earnings: N461.1 billion, +62% YoY  
  • Net Interest income: N175.2 billion, +55% YoY  
  • Non-interest revenue: N180.0 billion, +43% YoY 
  • Net iImpairment losses on financial assets: N15.5 billion, +50% YoY 
  • Income after credit impairment charges: N355.2 billion, +48% YoY  
  • Operating expenses: N166.8 billion, +29% YoY  
  • Profit before tax: N172.9 billion, +72% YoY  
  • Profit for the year: N140.6 billion, +74% YoY  
  • Earnings per share: N10.62, +76% YoY  
  • Loans and advances: N2.0 trillion, +69% YoY  
  • Cash and cash equivalents: N1.4 trillion, +108% YoY 
  • Total Assets: N5.1 trillion, +70% YoY  

Dividend payments for 2023 

For the period ending December 31, 2023, the group is proposing a final dividend of N2.20 per share to its shareholders, totalling N28.5 billion.

In September 2023, the group distributed an interim dividend of N1.50, amounting to N19.4 billion, thus reaching a total dividend payout of N47.9 billion for 2023, a 6% rise from the N45.4 billion paid in 2022. 

What you should know  

Like other banking institutions in 2023, Stanbic IBTC enjoyed bumper earnings from increased interest rates in the country.

Despite a 50% increase in impairment losses on financial assets, the group’s balance sheet displayed a level of stability.  

The group’s total assets for 2023 recorded a 70% growth to N5.1 trillion, from the N3.0 trillion posted in FY 2022. This growth in asset was driven to a 69% increase in the group’s loans and advances as well as the 108% growth in cash and cash equivalents.  

Following the new CBN capital base requirements for banks, Stanbic IBTC has a responsibility of improving its capital base from the present N109.3 billion to the N200 billion required for banks within its category.  

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-by David Olujinmi

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