Stanbic IBTC Holdings Plc has reported a Profit After Tax of N17.04 billion for the fourth quarter of 2020 (Q4, 2020), compared to N19.5 billion made in the corresponding period of 2019, indicating a drop in profit by 12.5percent Year-on-Year.
This is according to the recent financial statement made available on the Nigeria Stock Exchange.
The Bank had earlier posted an improved Profit After Tax of N20.96 billion for Q3, 2020, despite recording a noticeable decline in Interest income for the period. The Profit After Tax however dipped in Q4 2020.
Other key highlights for Q4 2020 are; Gross earnings which declined to N51.16 billion, -11.3 percent, Net interest income declined to N17.96 billion, Fee and commission revenue, increased to N19.32 billion, +4.5percent.
Others are; Pre-tax profit declined to N17.85 billion, -18.7 percent, Operating expenses increased to N23.43 billion, Staff costs increased to N10.9 billion, and Earnings Per Share also declined to 149 kobo.
The decline in revenue and income-earning components coupled with the increase in frontline expenditure items, led to a decline in both pre and after tax profits. This is similar to a mixed result recorded by the bank in Q3 2020.
Comparatively, Stanbic IBTC posted one of its best result for the year in H1, 2020 where most of its key financial metrics increased.
According to a recent report by EFG Hermes, these gains can be attributed to the materially lower risk charge to Nigeria’s Central Bank lenient forbearance, which aided the bank and a host of other DMBs to restructure a significant portion of their loans impacted by COVID-19.
The report predicted that most Nigerian banks’ profits will be under immense pressure especially in Q1 2021.