At Last, Stanbic IBTC Settles With FRC, Nets N18.89bn Profit In 2015

At Last, Stanbic IBTC Settles With FRC, Nets N18.89bn Profit In 2015

Offers N0.05 Dividend, As Council Clears Directors

Almost two years after its face-off with the Jim Obaze-led Financial Reporting Council (FRC) became public knowledge, Stanbic IBTC Holdings, a subsidiary of Standard Bank Group of South Africa, says both parties has reached “an acceptable settlement,” following which it obtained approval for its external auditors- “Messrs. KPMG Professional Services to sign our 2015 Audited Financial Statements” for onward presentation to the Nigerian Stock Exchange.

A statement by Chidi Okezie, its Company Secretary, dated December 21, 2016, added confirmed that the FRC “has lifted the suspension of the FRC Numbers of” Atedo N.A. Peterside, the group’s founding managing director and now chairman; Mrs. Sola David – Borha, the Chief Executive; Dr. Daru Owei, Chairman, Audit Committee; and Arthur Oginga the erstwhile Chief Financial Officer, authorizes them where applicable, to sign the audited financial statements.

While appreciating the NSE and other stakeholders for their support, the statement promised that Stanbic IBTC would continue to abide by all extant statutes, rules and regulations.

According to the audited account presented to the NSE, profit after tax fell by 45.17%, despite the 7.17 per cent increase in gross earnings income, following which the directors have proposed a five kobo dividend from its earnings per share (EPS) of N1.55, as against the previous year’s N3.17. This year’s dividend is payable three days after the annual general meeting whose date and venue has not be fixed.

Specifically, Stanbic IBTC Group reported gross earnings income of N140.027 billion, up by N9.373 billion in the year ended December 31, 2015, up from previous year’s N130.654 billion, helped by interest income of N82.686 billion; while interest expenses rose to N38.826 billion as against the previous N24.498 billion.

The group recorded income before impairment charges of N100.648 billion, down from N104.645 billion in 2014; just as credit impairment charges jump from N3.217 billion to N14.931 billion, leaving an income after credit impairment charges of N85.717 billion, a drop from the previous N101.428 billion.

Operating expenses also climbed to N62.066 billion from N57.901 billion, leaving a profit before tax fell by N19.876 billion or 45.66 per cent from N43.527 billion in the corresponding period of 2014, to N23.651 billion; just as a N4.308 billion or 47.5 per cent reduction in income tax left net profit at N18.891 billion, down by N15.568 billion from the N34.459 billion reported in 2014.