STANBIC IBTC: AN ALERT FOR TOUGH 2015?

It looks like the nine months to September released recently by Stanbic IBTC was a red alert for financial year 2015.
In the first place, the group recorded record growth in credit loss provision of 521.3% to N12489m from N2010m at a time when loans and advances to customers dropped by 1.64% to N392054m.
In other words, in view if the times, is the group's loan portfolio being increasingly infested by toxic or  doubtful loans?
Secondly, Stanbic IBTC increased its gross earnings by 10.3 % even as Net interest income went down by 5.14%. A feat it seems since interest income is the main stream.
Not that a feat though, because all round there was good growth in gross income, it is the net figure that failed to impress because the growth in cost of earning interest and cornering fees and commission grew wings of their own.
Interest expense rose by 69.1% to N29747m compared to otherwise impressive 19.8% rise in interest income to N62676m.
The same way, fees and commission expense came to N418m, up 32.7% on the N315m previously while income recorded rose by only 3.68% to N29958m.
Then of course, lesser income streams chipped in drops with trading income down 12.5% to N11144m and income from other sources 5.47% lower at N640m.
Naturally, Stanbic IBTC  then settled for only N15367m profit before tax, down almost by half on similar 2014 levels.
It is good though that customers deposits increased in spite of the government revenue accounts recall; cash rose by 58.1% to N226219m even as borrowings dropped by 7.67%  to N64767m.
IN SUM:
* If Stanbic IBTC wants to reverse the red alert, a close watch over its loan portfolio is most necessary.
* Staff costs very marginal growth was commendable and similar brakes must be found for growth in expense of earning income from its two major streams  viz: interest and fees and commission.