Stanbic is in growth spurt as half year profit surged 56 percent amid the regulatory headings stoked by the Central Bank of Nigeria tightening policy and regulatory and its regulatory induced policies.

The impressive or stellar performance shows that where other banks are susceptible to an unpredictable operating environment, Stanbic is tapping into the innumerable opportunities lurking in the Nigeria economy.

For the year first six months through June 2014, the Nigeria lender’s revenue rose by 13 percent to N61.47 billion from N54.51 billion the same period of the corresponding year of 2013 (HY).

It will be recalled that the bank recorded the highest double digits Q1 2014 earnings growth 89 percent the strongest in the industry.

Profit before tax (PBT) in the review period spiked by 50 percent to N19.61 billion in HY 2014 compared with N13.09 billion as at HY 2013.

Stanbic IBTC posted a profit after tax (PAT) of N15.95 billion in HY 14; a 56 percent increase from N10.18 billion recorded HY 2013.

Net margin, a measure of profitability and efficiency remained flat at 3 percent in the 3 percent in the review period.

With this consistent growth at the top line bottom line, the bank could climb it way to joining the big bank club.

Customer lending has increased as loans and advances to customers rose by 18 percent to N342.21 billion in HY 2014 compared with N289.74 billion as HY 2013.

Loans to deposit ratio, a measure of aggressiveness of banks to lending, reduced to 66.86 percent in 2014 from 69.59 percent in 2013.

The bank expanded its deposit base as deposit to customer spiked by 23 percent to N511.76 billion from N416.35 billion as at June 2012.

Total assets increased by 19 percent to N906.83 billion in HY 2014 compared with N763.04 billion as at HY 2013.

Stanbic IBTC was formed following the 2007 merger of Standard Bank’s Nigeria operations and IBTC Chartered Bank Plc.

The bank holds a universal banking license and was one of the banks to adopt the holding company structure in 2012 following the recent CBN regulation non- core subsidiaries.

The bank has174 branches and 10 billion shares outstanding with shareholders fund of N112.30 billion as at June 30, 2014.

Its share price closed trading at N29.09 on the floor of the Nigeria stock exchange, while market capitalization was N290.9 billion.

Source-BusinessDay