Bloomberg News

Stanbic IBTC of Nigeria Full-Year Profit Declines by 21%

March 29, 2012

Stanbic IBTC Bank Plc (IBTCCB), the Nigerian unit of Standard Bank Group Ltd., said full-year profit dropped 21 percent to 7.44 billion naira ($47 million) as it made provisions for bad debt.

Net interest income rose to 29.8 billion naira from 26.4 billion a year earlier, the Lagos-based company said in an e- mailed statement today. Non-performing loans rose 30 percent to 18.5 billion naira, while gross lending increased 42 percent to 266.6 billion naira, the bank said in the statement.

The bank took a loss provision of 4.7 billion naira, “eroding the modest earnings accretion,” Vetiva Asset Management Ltd. said in an e-mailed note. The company’s proposed dividend of 10 kobo per share is “disappointing,” according to Vetiva, which placed its “Accumulate” rating on the bank under review.

Stanbic IBTC’s shares dropped 4.9 percent to 6.80 naira by the close today in Lagos.

To contact the reporter on this story: Vincent Nwanma in Lagos at vnwanma@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net.


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