Stanbic IBTC Holdings Plc recorded 19 per cent growth in net earnings in the third quarter as profit after tax closed the nine-month period at N66.2 billion, The Nation reports.
Key extracts of the interim report and accounts of Stanbic IBTC released at the Nigerian Stock Exchange (NSE) showed that gross earnings rose by 4.0 per cent to N183.3 billion in third quarter 2020 as against N176.2 billion recorded in third quarter 2019.
Profit before tax also rose from N69.11 billion to N76.87 billion. After taxes, net profit grew by 19.1 per cent from N55.6 billion in third quarter 2019 to N66.2 billion in third quarter 2020. Earnings per share thus rose from N5.13 in third quarter 2019 to N5.80 in third quarter 2020.
The third quarter performance indicated that the group might be on the way to modest improvement in the current business year. Stanbic IBTC had recorded a net profit of N75.04 billion in 2019. The company subsequently paid N21 billion as dividend for the 2019 business year, implying a dividend per share of N2, 33.3 per cent increase on N1.50 per share paid for the 2018 business year.
Key extracts of the audited report and accounts for the year ended December 31, 2019 had shown that gross earnings rose from N222.36 billion in 2018 to N233.81 billion. Profit before tax increased from N88.15 billion in 2018 to N90.93 billion in 2019. Profit after tax also improved marginally from N74.4 billion to N75.04 billion. Earnings per share however dropped from N7.04 in 2018 to N6.92 in 2019. The decline in earnings per share was due to additional shares due to cash-to-scrip dividend conversion policy of the company.
In a recent review, Chief Executive Officer, Stanbic IBTC Holdings Plc, Yinka Sanni, while acknowledging that the regulatory and economic environment could sometimes be challenging, said the company remained resolute in its target to emerge as Nigeria’s leading end-to-end financial solutions provider.
“While we look to 2020 with great optimism, we are fully aware of the challenging macro-economic and regulatory headwinds that we must contend with as we enter a new decade. Nonetheless, our strategic journey towards becoming the leading end-to-end financial solutions provider by 2023 continues as we leverage our universal capabilities whilst focusing on cost management, digitisation and client centricity in accelerating growth in 2020,” Sanni said.
He added that the Stanbic IBTC continues to benefit from its adoption of a digital strategy as well as operating a holdings company structure which enables subsidiaries to cross-sell and also leverage expertise within the group.
Under a resolution passed at its extraordinary general meeting in August 2016, shareholders of Stanbic IBTC Holdings may choose to receive dividends declared by the company, up to year 2020, either in cash or as new ordinary shares in the company.
Under the conversion programme, the reference price to be used in determining any scrip dividend allotment shall be the volume weighted average price (VWAP) of the company’s shares on the NSE for the five business days commencing on the day the ordinary shares are first quoted ex-dividend.
Where a shareholder elects to receive the whole or a part of his dividends by way of new ordinary shares, such scrip shares shall only be allotted after receipt of any required regulatory. In order to be valid, any scrip dividend election by shareholders must be made to the company’s Registrars, not later than seven days prior to any dividend payment date.
