Stanbic IBTC H1 2021

There was a decline in gross earnings and a much sharper decline in profit

The group’s gross earnings decreased by 26.06% from N126.5 billion in 2020 to N93.5 billion in 2021.

Profit before tax decreased by 52.85% from N52.4 billion in 2020 to N24.7 billion in 2021

The massive dip was due to a drop in trading revenue (more specifically fixed income). That fell from N34.2 billion in 2020 to N5.4 billion in 2021

Segmental breakdown

Revenue is broken into 3 segments:

Personal and Business Banking (PBB),

Corporate and Investment Banking (CIB)

Wealth Management

About 37% of income came from CIB, 37% Wealth Management, and 26% PBB

In terms of the bottom line, PBB remains loss-making, CIB fell sharply (remember the drop in trading income?)

Wealth management was the outlier. It went up decently. It also accounted for 69.3% or N15.6 billion of the N22.5 billion in profit after tax made during the period.

Profit after tax decreased by 50.13% from N45.2 billion in 2020 to N22.5 billion in 2021

The interim dividend was jacked up from 40 kobo in 2020 to N1 in 2021, up 150% year on year.

Stanbic historically tends to pay a large interim dividend.