Stanbic IBTC posted an impressive pre-tax profit of N303.8 billion, reflecting a 75.70% YoY growth.
This growth was driven by a significant expansion in net interest income (+134.29%) and net fees and commission income (+54.52%), indicating robust revenue generation across interest and non-interest income streams.
Key highlights (2024 vs 2023):
Total interest income surged by 109.34% YoY. However, there was a shift in income sources:
Customer deposits expanded by 45.20% to N3.009 trillion, reflecting a strong liquidity position and customer confidence. However, the cost of funding these deposits is rising:
This suggests that higher interest rates and intense competition for deposits have driven up funding costs, which could affect net interest margins in the future.
This sharp increase suggests a deterioration in asset quality, potentially driven by macroeconomic challenges, loan defaults, or increased exposure to riskier borrowers.
Overall. Stanbic IBTC delivered an exceptional performance in 2024, with strong profit growth, higher interest income, and a solid balance sheet.
However, rising impairments and funding costs pose risks. The bank’s shift towards securities income, rather than pure lending, reflects a strategic adjustment to optimize earnings in a high-interest rate environment.
Investors should monitor credit risk trends and funding costs, but the overall outlook remains positive given its profitability and asset expansion.