A recent hike in interest rate has helped Stanbic IBTC with a record 180 per cent increase in net interest income.
For the nine months ending September 2024, after-tax profit soared to ₦182.8 billion, up from ₦109.2 billion last year, showcasing the bank’s resilience in challenging economic conditions.
In a remarkable display of financial growth, Stanbic IBTC reported a 180% increase in net interest income, driven by recent interest rate hikes.
Furthermore, the bank’s nine-month financial report for September 2024, submitted to the Nigerian Exchange Limited, revealed a 67.3% rise in after-tax profit, reaching ₦182.8 billion, up from ₦109.2 billion in 2023.
Interest income surged to ₦425.7 billion from ₦184.5 billion; however, interest expenses also rose significantly by 171.3% to ₦173.9 billion, reflecting the current high-interest environment.
In addition, the bank’s trading revenue increased to ₦80.2 billion, up from ₦59.7 billion, boosted by trading in fixed-income securities and currencies.
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Notably, the Central Bank of Nigeria (CBN) has raised interest rates by 850 basis points in 2024, with the monetary policy rate hitting 27.25%.
Moreover, fees and commission revenue grew by 58.9% to ₦134.3 billion, supported by a 37.8% rise in asset management fees.
Despite facing an impairment loss of ₦59.3 billion, the bank’s operating expenses increased to ₦183.5 billion due to inflation and energy costs.
Nevertheless, net cash flow from operating activities reached ₦1.84 trillion, a significant jump from ₦406 billion the previous year.
Ultimately, Stanbic IBTC declared earnings per share of ₦1,390, up from ₦825 in the corresponding period of 2023, highlighting its strong financial performance amid economic challenges.
