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Stanbic IBTC Holdings has reported that its 2016 after-tax profit rose by 51 per cent to N28.52 billion from N18.89 billion posted in the previous year, according to a statement released on Wednesday.

The bank’s holding company said its revenue was N156.43 billion, up 12 per cent from N140.03 billion in 2015. The revenue growth was driven by significant improvement in all three revenue divisions: personal and business banking; corporate and investment banking; and wealth management, which includes asset management, pension fund administration, trusteeship, and estate planning services.

Yinka Sanni, CEO of Stanbic IBTC Holdings, said the company’s overall performance, including revenue and profit growth, demonstrated its resilience over the year, despite Nigeria’s macroeconomic challenges.

“The difficult economic environment occasioned by the collapse in global crude oil prices in 2015 continued during the year,” Sanni said. “This impacted negatively on the operating environment, resulting in the Central Bank of Nigeria making a number of policy changes to maintain stability in the financial system. The group’s performance showed resilience over the year.”

Total assets rose by 12 per cent to N1.053 trillion compared with N937.6 billion a year earlier. The rise in total assets was driven mainly by increases in customer deposits and financial investments.
 
However, Stanbic IBTC reported that gross loans and advances declined by 1 per cent to N375.3 billion; non-performing loans decreased by 25 per cent to N24 billion; and NPL ratio fell to 6.4 per cent compared with 8.5 per cent in 2015.

“The customer loan book declined marginally by 1 percent due to a cautious approach adopted to lending. Asset quality improved as ratio of non-performing loans to total loans reduced,” Sanni said. “As a result of the difficult credit impairment environment, which is a reflection of the overall performance of the economy, we witnessed an increase in credit loss ratios from 3.8 percent in prior year to 5.2 percent during the year.”

For the year under review, Stanbic IBTC said basic earnings per share rose to N2.46 per share from N1.55 per share in the previous year. The company has declared a final dividend of 5 kobo per share, which will be paid three working days after a yet-to-be-scheduled Annual General Meeting.

Stanbic IBTC’s stock rose 1.69 per cent to close at N17.7 per share at the Nigerian Stock Exchange on Thursday.