Stanbic IBTC reports N303.796 billion pre-tax profit in 2024

Similarly, post-tax profit increased by 60.23% to N225.311 billion.

A further review of the financial statements suggests the performance can be attributed to strong revenue growth, as gross earnings surged by 78.26% to N823.309 billion, significantly boosting the bank’s bottom line.

A deeper dive into the financial statements shows that the bank performed impressively in its core business.

Interest income from loans and advances, as well as investments in securities, continues to be the primary driver of the bank’s revenue.

Notably, interest income from loans and advances accounted for more than 69% of total interest income.

The bank’s loan book expanded by 17.6% (N359.213 billion), reflecting increased lending activity.

Additionally, net financial investments surged to N1.085 trillion, more than doubling from N436 billion in 2023, indicating a more aggressive investment approach.

The bank’s 12-month expected credit losses for loans and advances to customers skyrocketed to N88.664 billion, a sharp increase from N16.823 billion in 2023.

This reflects higher provisions for potential loan defaults, possibly due to rising credit risk, economic uncertainties, or a more cautious provisioning strategy.

However, the bank maintained a strong net interest income after impairment charges, supported by a healthy spread between interest income and interest expenses. Interest expenses accounted for just 27% of interest income.

In addition to core banking operations, non-interest income grew significantly, primarily driven by asset management fees, which surged 37% YoY to N98.677 billion.

This suggests that the bank’s wealth management and advisory segments continue to be strong revenue contributors.

Despite the strong full-year performance, quarterly results showed a decline across key financial metrics.

Overall, Stanbic IBTC’s 2024 performance highlights strong revenue and profit growth, driven by higher lending, robust interest income, and growing non-interest revenue.

However, the sharp increase in expected credit losses suggests a more cautious approach to credit risk, possibly reflecting economic uncertainties or a rise in non-performing loans (NPLs).

However, the sharp increase in expected credit losses suggests a more cautious approach to credit risk, possibly reflecting economic uncertainties or a rise in non-performing loans (NPLs).

Additionally, the Q4 slowdown across earnings and profitability metrics warrants close monitoring, as it could indicate challenges ahead. The bank’s ability to manage credit risks, sustain loan growth, and maintain cost efficiencies will be key in determining future performance.