The Moment (London)

Nigeria: Stanbic IBTC Posts N11 Billion Profit Growth

STANBIC IBTC Bank, a member of Standard Bank Group, has announced its audited results for the year ended December 31, 2011, posting a profit before tax of N11.2 billion from gross earnings of N67.4 billion.

Information made available to the Moment said the banks Pre-tax profit stood at N13.5 billion in the 2010 financial year, while profit after tax in 2011 stood at N7.4 billion, a decrease of 21 per cent from N9.5 billion in December 2010.

The growth in gross earnings represents an increase of 19 per cent over the N56.7 billion posted in December 2010. Total assets went up 44 percent to N554.2 billion as against the prior year's N384.5 billion.

According to the results for the year made available at the Nigerian Stock Exchange on Thursday, March 29, 2012, total operating income increased by 17 percent to N56.5 billion, from N48.4 billion in December 2010, while gross loans and advances to customers went up 42 per cent to N266.6 billion, compared to N187.1 billion in December 2010.

Chief Executive Officer, Stanbic IBTC Bank, Mrs. Sola David-Borha, emphasised that the bank is strategically primed to achieve higher growth in the years ahead despite the tough operating conditions.

'As expected our operating performance in 2011 was in line with our strategy of building a franchise which can generate sustainable risk adjusted returns to our shareholders.

Our continued investment in building a cost efficient and customer friendly branch network combined with our innovative and attractive bouquet of banking products and our growing base of stronger customer relationships yielded very pleasing loan and deposit growth in 2011 despite the testing operating environment,' she stated.

'The loan book grew by 42 per cent, well ahead of the overall market growth rates, and our deposit book by a significant 57 per cent.

These results demonstrate that our strategy is bearing fruit and positions us towards realising our objective of being the leading end-to-end financial solutions provider in Nigeria.'

David-Borha said the bank remains on track to achieve its long term strategic growth and profitability by continuing to mitigate exposure to unforeseen shocks and prioritising asset quality through diligent and systematic approach to risk management.

The bank's aggressive branch expansion project remains on course, she said, the overall objective being to avail a growing number of Nigerians access to Stanbic IBTC Bank's rich bouquet of services and products, while other fundamentals are being strengthened for enhanced performance and efficiency.

Already present in all the 36 states of the country, including the FCT, the bank made significant investment in expanding its footprint last year, growing the branch network by 21 per cent to 171 branches at year end 2011 from 141 in 2010.

As a result of this investment and the continued focus on excellent customer service, the number of customers, volume, and value of transactions on the bank's ATMs grew by 16 per cent, 26 per cent and 91 per cent respectively.

David-Borha said the bank continued to maintain its traditional signature capital strength and healthy liquidity position throughout the year, while access to an extensive depth of experience from within the bank and the Standard Bank Group has put Stanbic IBTC Bank in an enviable position to generate growing value for shareholders in 2012.

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