Stanbic IBTC Holding Plc has announced a pre-tax profit of N303.796 billion for the 2024 financial year ended December 31, 2024, representing a 60.23% year-on-year (YoY) growth.
Similarly, post-tax profit increased by 60.23% to N225.311 billion.
A further review of the financial statements suggests the performance can be attributed to strong revenue growth, as gross earnings surged by 78.26% to N823.309 billion, significantly boosting the bank’s bottom line.
Key highlights (2024 vs. 2023)
- Gross earnings: N823.309 billion; +78.26% YoY
- Interest Income: N566.462 billion; +109.34% YoY
- Interest Expense; N156.011 billion; +63.55% YoY
- Net interest income; N410.4510 billion; +134.29% YoY
- Non-interest revenue: N236.393 billion; +31.35% YoY
- Net fees and commission income: N170.395 billion; +54.52% YoY.
- Net impairment loss on financial assets: N99.359 billion; +543.02% YoY
- Income after credit impairment charges: N547.485 billion; +61.16% YoY
- Profit for the period N225.311 billion; +60.23% YoY.
- Earnings per share N17.10; +61.02% YoY
- Loans and advances to customers N2.348 trillion; +15.15%.
- Cash and Cash equivalents N2.245 trillion; +62.13%
- Total Assets N6.912 trillion; +34.33%.
- Customers’ deposits N3.009 trillion; +45.20%.
- Shareholders’ funds: N670.648 billion; 32.30% YoY
Cursory analysis
A deeper dive into the financial statements shows that the bank performed impressively in its core business.
Interest income and lending activity
Interest income from loans and advances, as well as investments in securities, continues to be the primary driver of the bank’s revenue.
Notably, interest income from loans and advances accounted for more than 69% of total interest income.
The bank’s loan book expanded by 17.6% (N359.213 billion), reflecting increased lending activity.
Additionally, net financial investments surged to N1.085 trillion, more than doubling from N436 billion in 2023, indicating a more aggressive investment approach.
Credit losses and risk exposure
The bank’s 12-month expected credit losses for loans and advances to customers skyrocketed to N88.664 billion, a sharp increase from N16.823 billion in 2023.
This reflects higher provisions for potential loan defaults, possibly due to rising credit risk, economic uncertainties, or a more cautious provisioning strategy.
However, the bank maintained a strong net interest income after impairment charges, supported by a healthy spread between interest income and interest expenses. Interest expenses accounted for just 27% of interest income.
Non-interest income and asset management growth
In addition to core banking operations, non-interest income grew significantly, primarily driven by asset management fees, which surged 37% YoY to N98.677 billion.
This suggests that the bank’s wealth management and advisory segments continue to be strong revenue contributors.
Q4 performance decline raises caution
Despite the strong full-year performance, quarterly results showed a decline across key financial metrics.
- Gross earnings dropped significantly from N363.130 billion in Q4 2024 to N230.785 billion in Q4 2023.
- Post-tax profit also declined sharply to N42.440 billion in Q4, down from N111.7 billion in 2023.
Overall, Stanbic IBTC’s 2024 performance highlights strong revenue and profit growth, driven by higher lending, robust interest income, and growing non-interest revenue.
However, the sharp increase in expected credit losses suggests a more cautious approach to credit risk, possibly reflecting economic uncertainties or a rise in non-performing loans (NPLs).
Additionally, the Q4 slowdown across earnings and profitability metrics warrants close monitoring, as it could indicate challenges ahead. The bank’s ability to manage credit risks, sustain loan growth, and maintain cost efficiencies will be key in determining future performance.
