Lower taxes, cost containment deliver profit boost for Stanbic IBTC

Stanbic IBTC Bank Plc released its full-year 2020 interim results showing strong growth in profits.

  • Net Interest Income adjusted for impairments was N64.2 billion vs N76.1 billion in 2019, -15.6% YoY.
  • Commissions and fees earned N71.19 billion vs N70.3 billion in 2019, +2.2%
  • Operating income which includes fees and interest was N188.9 billion vs N184.9 billion in 2019, +2.1%
  • The bank reported a profit after tax of N83.21 billion in 2020 vs N75.04 billion a year earlier. +10.90% YoY
  • Tax incurred in 2020 was N11.5 billion vs N15.89 billion in 2019
  • Earnings per share for the period under review is 920 kobo vs 662 kobo in 2019, +10.12%YoY
  • No dividend announcement was made in their press release.
  • The company share price of N44.90 as of when the result was released. It is up 1.93% year to date.
  • Price-earnings ratio of 5.99x

Bottom Line: Stanbic IBTC showed strong resilience amidst unfavorable CBN policies that stifled interest margins. Policies like CRR and LDR affected Stanbic negatively which reflects in lower net interest income.

However, the bank’s profit was boosted by a combination of cost containment and tax efficiency.

See link to results

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