Stanbic IBTC Holdings Plc has announced that their profit after tax has increased by 71 per cent to N116.36bn in the first half of the year, from N67.92bn in the previous year.... CLICK TO READ THE FULL NEWS HERE▶▶
This was made known in the bank’s consolidated and separate statements of profit or loss for the six months ended June 30, 2024, filed with the Nigerian Exchange Limited recently.
It was revealed that the bank’s net interest income rose by 54 per cent to N174.30bn, from N72.68bn in H1 2023, driven by a boost in interest income, which also increased by 123 per cent to N246.13bn from N110.26bn.
The bank also experienced a 91 per cent increase in interest expense, which climbed to N71.83bn from N37.58bn due to higher interest rates and increased borrowings.
Additionally, operating expenses rose by 58 per cent to N129.89bn from N82.34bn, on the back of higher staff costs and other operational expenditures.
Stanbic IBTC stated that N563bn had been recognised as off-balance sheet pledged assets, representing 30 per cent of the original transaction amount.
It added that the transaction was part of a cross-currency interest rate swap agreement between Stanbic IBTC and Standard Bank of South Africa Limited.
The agreement involves an exchange of $1bn for N1.482bn with the CBN.
It noted that as of June 30, Stanbic IBTC Group’s loan commitments stood at N123.99bn, compared to N97.71bn at the end of December last year.
“An amount of N563bn has been recognised as off-balance sheet pledged assets, which represent 30 per cent of the original transaction that was ceded to Stanbic IBTC Bank by Standard Bank of South Africa Limited in a Cross-Currency Interest Rate Swap agreement with CBN involving the exchange of $1bn for N1.482bn.
“As of 30 June 2024, the group had loan commitments amounting to N123.99bn (Dec 2023: N97.71bn) in respect of various loan contracts. The expected credit loss on the off-balance sheet exposures amounts to N663m (Dec 2023: N619m),” it said.
Stanbic IBTC Holdings Plc has added that it is expected to raise about N550bn through a debt issuance programme and a rights issue.
