Stanbic IBTC Holdings declares N6bn interim dividend

Stanbic IBTC Holdings Plc, a member of Standard Bank Group, has announced that it will be distributing a total of N6 billion as interim dividend for the first half of this year.

Shareholders on the register of the holding company by the close of business on September 7, 2017 will receive a dividend per share of 60 kobo.

The dividend recommendation followed significant growths in earnings and profitability of the company during the period ended June 30 2017. Gross earnings rose by 36.3 per cent to N97.198 billion in first half 2017 as against N71.320 billion recorded in the corresponding period of 2016.

The result, which was submitted to the Nigerian Stock Exchange in Lagos on Tuesday, showed that profit before tax increased by 86 per cent to N29.169 billion during the period, from N15.682 billion last year. Profit after tax at N24.112 billion was a growth of 113 per cent compared to N11.317 billion in the corresponding period of 2016. Total assets went up by 21 per cent to N1.273 trillion from N1.053 trillion in December 2016.

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Further analysis showed that income before impairment charges grew by 43 percent, driven by a sustained growth in yields from investment securities and trading activities. Interest income increased by 55 percent and trading revenue grew by 81 percent, positively impacting profit after tax which increased by 113 percent year-on-year.

The balance sheet grew by 21 percent year-to-date as trading assets and financial investments increased by over 100 percent and 19 percent respectively. Our cost-to-income ratio continued to witness improvement, standing at 47.0 percent at the end of H1 2017 when compared with 57.7 percent in H1 2016.

The group maintained adequate capital to support its business and drive business growth in H1 2017. The group’s total capital adequacy ratio at the close of the period was 22.9 per cent and Tier 1 capital adequacy ratio of 19.2 percent. These ratios are well above the 10 percent minimum statutory requirement. The group’s liquidity ratio closed at 100.24 percent, significantly higher than the 30 per cent regulatory minimum.

Expressing delight at the result, Chief Executive Officer, Stanbic IBTC Holdings Plc, Yinka Sanni, noted the improvement in the operating environment.

According to him, the domestic environment in the first half of 2017 recorded a decline in headline inflation, improved foreign exchange liquidity and a gradual economic expansion as measured by the Purchasing Managers’ Index.
“The improved operating environment positively impacted our businesses leading to significant improvement in our financial results,” Sanni said.

 

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