Stanbic IBTC revenue slumps in Q4 2020

Stanbic IBTC recorded a lower fourth quarter revenue last year when compared to the corresponding period of 2019. The lender, however, managed to grow its revenue slightly in full year 2020.

In the last three months of last year, the revenue generated by the bank was N51.16 billion. This is below the N57.65 billion Stanbic recorded during the same period a year before.

It’s full year earnings rose by 0.27% when compared to the turnover of the corresponding period in 2019. The slow growth reflected the impact of COVID-19 on the operations of the lender.

In the earnings report received, the revenue generated by the Atedo Peterside’s company last year was put at N234.44 billion, slightly surpassing the N233.80 billion grossed during the same period in 2019.

Full year interest income fell during the COVID-19 year, declining to N105.77 billion in one year, against the N120.41 billion Stanbic IBTC recorded at the corresponding period two years ago.

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Interest expense followed the same path after recording N31.56 billion between twelve months of 2020, below the N42.58 billion the lender had reported for the preceding year.

Profit before tax of the lender, however, rose to N94.71 billion at the end of last year’s FY, in contrast to the N90.92 billion Stanbic IBTC posted during the corresponding period of 2019.

Profit after tax also ended with an increase when compared to the N75.03 billion recorded in 2019. Last year’s profit after tax hit N83.21 billion.

Speaking on the impact of COVID-19 on its operation, Stanbic IBTC said, “Like most Financial Institutions, Stanbic IBTC’s operations and performance was fairly hit by the COVID-19 pandemic, though the twin effect of a well-positioned balance sheet and diversified business lines cushioned the impact.

“Apart from cost savings on some expense lines such as training, marketing and advertising expenses, the Group had some incremental expenses on donations as disclosed in the directors’ reports and some operational costs incurred in order to provide essential services during the lock down period.

“However, increased allowance for expected credit loss is the major incremental non-arbitrary impact of COVID-19 on the financial performance of the group.” the company stated.

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