STANBIC IBTC OUT OF FRC's HOOK

Stanbic IBTC bank has finally got out of the hook of the Financial Reporting Council (FRC), the body charged with ensuring accounting standards are maintained in Nigeria.

According to a notice to the Nigeria Stock exchange dated December 21, the FRC has lifted the suspension of the bank's Board Chairman, Atedo N A Peterside , the CEO Ms Sola David and two other top officials from signing the company's financial statements. FRC had also asked the bank's external auditors not endorse its accounts.

The notice was signed by Chidi Okezie, company secretary and it said that this was due to "acceptable settlement" of issues involved with the FRC.

In view of this, Stanbic IBTC finally released its 2015 annual accounts to the exchange this week accompanied with 2016 report s up to September.

From the 2015 audited figures, the year was tough but mainly because interest expense grew by 52.3% to N38826m; Trading and other income dropped by 11.6% and 50.8% to N15503m and N581m respectively, and more importantly, credit loss provision jumped to N14931m from N1180m in 2014.

There was also pressure from 15.9% rise in other operating expenses and rise in fee and commission expense to N37241m from N32122m.

Strength within the year came from asset management business where 14.2% increase to N23220m was reported and fixed Income's 62.1% rise to N11991m.

In the end 2015 profit dropped by 45.7% to N23651m although in spite of this, the directors are recommending 5k dividend.

The 2016 figures to September point to different possibilitirs though especially with more profitable third quarter, far less provision for doubtful debts and 22.4% profit margin by September compared to 14.7% by the same time in 2015.

STANBIC IBTC: Nm Sept.
                       2016.          2015
Gross earning 114622  104418
Interest inc.      61185.    62678
Interest exp.       22096.  29747
Fee& Common.  40626   29958
       " Expense.        542    418
Trading income 12272.  11144
Other income.        539.      640
Impairment.       15278.  12489
Staff cost.             22805.  20001
Other op. Exp.     28213.  26396
Profit before tax 25688.  15367
Profit margin %.     22.4.    14.7  

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