Stanbic IBTC Holdings Plc posted a 43.7% year-on-year increase in profit after tax (PAT) in financial year 2024, according to its earnings release. In its regulatory filing, Stanbic IBTC reported that its net income rose to N202.1 billion from N140.6 billion in 2023.
Its improved profitability was supported by its gross earnings growth in the same period. According to Stanbic Financials, gross earnings climbed by 78.2% year on year to close at N802.9 billion from N450.6 billion in the comparable period.
The surge in gross earnings was fuelled by a 2.1x jump in interest income to N566.5 billion and a 1.3x rise in non-interest revenue (NIR) to N236.4 billion, according to analysts. Net interest income increased by 134% year on year to N410.5 billion amidst a high interest rate environment, from N175.2 billion in the comparable period.
In 2024, Stanbic IBTC total non-interest income grew by 31.3% year on year to N236.4 billion from N180 billion in 2023. The group saw a significant surge in operating expenses, up by 46.1% year on year to N243.7 billion in 2024 from N166.8 billion.
At N303.8 billion, Stanbic IBTC pretax profit was 75.7% higher than record performance in 2023. A strong increase in tax expenses caused a drag to the financial group’s bottom-line performance.
Profit after tax grew by 43.7% to settle at N202.1 billion following tax expenses of N101 billion, up by 215% year on year from N32.3 billion. Elsewhere, the bank’s cost profile revealed a 46.1% increase in operating expenses (OPEX) to N243.7 billion.
However, the cost-to-income ratio improved to 37.7% from 47.0% in 2023, supported by an 82.1% surge in operating income to N174.1 billion. Meanwhile, impairment charges soared 6.4x to N99.4 billion, which analysts at CardinalStone Securities Limited attribute to proactive risk management given the 110.4% jump in Stage 3 loans.
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