Stanbic IBTC records low profit

Sola David-Borha, chief executive officer of Stanbic IBTC PHOTO/REUTERS

Stanbic IBTC Bank yesterday announced its unaudited financial results for the half-year ended June 30, 2011.

The Nigerian bank which is majority owned by South Africa’s Standard Bank Group recorded 13.38 percent increase in its gross earnings for the period in view; from ₦28.4 billion in 2010 to ₦32.2 billion this year. The company’s operating income for the first half of the year also increased by 14.52 percent from ₦24.1 billion in 2010 to ₦27.6 billion this year.

However, Stanbic IBTC profit after-tax fell by 11.32 percent to ₦4.7 billion in the period in view, from ₦5.3 billion recorded last year.

Commenting on the bank’s financial performance, Sola David-Borha, chief executive officer of Stanbic IBTC Bank, said, “We are pleased to announce that Stanbic IBTC has continued to be profitable in the first half of the year 2011, with our financial results showing resilient growth despite the tough operating environment.” Mrs David-Borha said the bank’s gross earnings were up and both net interest income and non-interest revenue grew by 7 percent and 25 percent respectively. “We continued to grow our loan book responsibly in spite of tough competition for good quality credits, as evidenced by the 19 percent year to date growth rate,” she said, adding that the bank’s deposit book also witnessed a moderate growth of 14 percent during the period in view.

The company boss said the growth recorded was a function of the bank’s increased footprint, its commitment to providing excellent service and the strength of its brand. She said the bank continued to maintain its traditional capital strength and healthy liquidity position throughout the period and was in a good stead to capture further market share on the back of its growing footprint, excellent service leveraging technology and skilled and talented workforce.

“While 2011 is likely to remain a challenging one for the banking sector in Nigeria, we remain confident that our strategy will continue to deliver long-term value to our shareholders,” Mrs David-Borha said.