Stanbic IBTC Bank, a member of the Standard Bank Group, returned an impressive financial performance in 2009 year end results, posting a profit after tax of N8.1 billion, despite the unfriendly banking business terrain last year and a final dividend of 30 kobo per share to its shareholders.
In the audited results for the year ended 31 December 2009, the bank’s profit before tax stood at N10.3 billion, down from N14.6 billion in 2008; while profit after tax stood at N8.1 billion, down from N12.0 billion in 2008.Gross earnings stood at N59.8 billion a drop, compared to the corresponding period of 2008, which stood at N61.2 billion, indicating a two percent decline, while operating income increased by three percent to N43.8 billion, compared to N42.5 billion in 2008.
Chris Newson, Chief Executive Officer, Stanbic IBTC Bank, said despite the harsh operating environment, the group’s activities were generally profitable in 2009, and poised to remain on the growth path with the adoption of several strategic initiatives, including a highly disciplined approach to risk management and continued investment in capacity building.“Clearly, market conditions exerted particular pressure on our capital markets businesses but our diversified business model stood us in good stead as trading, lending, and transactional services made 2009 a satisfactory year,” Mr. Newson said.
The bank management said it hopes to improve on its business strategy by building on solid foundation to gather more customers in profitable market segments, a continous focus on recoveries and debt review, cautiously increasing focus on good quality asset growth, continued investment in channel expansion, focusing on achieving operational, and cost efficiencies across the business, increasing focus on new segments that was previously unbanked/ under banked - mini branch strategy, and developing new business segments and products.Mr. Newson noted that the bank’s branch expansion programme continues apace, the overall objective being to enhance access by a growing number of Nigerians to its services and products.
“We are expanding our network to connect with more Nigerians and to give access to service levels and a product range which are grounded in domestic and international expertise,” Mr. Newson said.The market operating environment was also not friendly, according to the statement by the bank. “Market was impacted by a slowdown in economic activity, significant slowdown in credit extension, tight liquidity and rising interest rate, lower international crude oil price, which adversely affected the oil and gas sector in H1 2009, sharply lower capital market (impact of margin loans), stress test audits by the CBN, NDIC, weak naira, among others.”