Key highlights
• Stanbic IBTC Plc reported a pre-tax profit of N36.26 Billion in 2023 from a profit of N19.59 billion reported during the same period in 2022.
• Interest income rose to N50.42 billion from N32.99 billion recorded during the comparable period of the 2022 first quarter, representing a 52.83% growth.
• The bank increased interest expenses by 46.86% to stand at N14.04 billion against N9.56 billion in the same period of 2022
Stanbic IBTC Plc’s unaudited report for the first quarter ended March 31, 2023, showed pretax profit grew by 85% in the first quarter of the year to N36.26 billion from N19.59 billion last year.
The group’s interest income grew by 52.83% to N50.42 billion in Q1 2023 from N32.99 billion in 2022.
This is on the back of increasing inflation which the economy continues to struggle with. The headline inflation rate rose to 22.04% in March, a 0.13% increase from the 21.91% rate recorded in February, according to the latest report published by the Nigerian Bureau of Statistics (NBS) on Friday.
The report said the increase was buoyed by the jump in prices of food, housing, fuel and gas, among others. The figure shows a consistent increase in the inflation rate for the last two years.
On a year-on-year basis, the headline inflation rate was 6.13% points higher compared to the rate recorded in March 2022 which was 15.92%.
Profit after tax equally grew by 91.51% to N28.86 billion in 2023 from N15.07 billion reported last year.
Interest expense rose by 46.86% from N9.56 billion to N14.04 billion in 2023.
Interest income
• 2023 Q1: N50.42 billion
• 2022 Q1: N32.99 billion
• Change: +52.83%
Total income
• 2023 Q1: N80.99 billion
• 2022 Q1: N55.79 billion
• Change: +45.17%
Operating expenses
• 2023 Q1: N41.45 billion
• 2022 Q1: N35.34 billion
• Change: +17.28%
Pre-tax profit
• 2023 Q1: N36.26 billion
• 2022 Q1: N19.59 billion
• Change: +85.09%
Net Profit after tax
• 2023 Q1: N28.86 billion
• 2022 Q1: N15.07 billion
• Change: +91.51%
Summary
The growth in pre-tax profits was due to the increase in interest income boosted by loans and advances to customers and credit-related fees and commissions.
(Naira Metrics)