Stanbic IBTC Holdings PLC Full year audited group results for the year ended 31 December 2013 STANBIC IBTC HOLDINGS GREW PROFIT AFTER TAX TO N20.7 BILLION FOR 31 DECEMBER 2013 LAGOS, NIGERIA 03 April 2014 Stanbic IBTC Holdings, a member of Standard Bank Group, has announced its audited results for the year ended 31 December 2013. Speaking from the Group s headquarters in Lagos, Sola David Borha, CEO of Stanbic IBTC Holdings, said: The group recorded a resilient performance in 2013 as evidenced by the significant growth in revenues and profitability despite the testing operating environment marked by the high interest rate as well as regulatory constraints on revenue streams of banks. This outstanding performance is driven by our diversified business operations, improved efficiency and growing customer base. We are happy to cross the 1 million customer mark in our banking business in 2013. We recorded modest growth in risk assets, deposit liabilities and assets under management as we continue to provide end to end financial solutions to our valued and highly esteemed customers. We also maintained our market leadership in pension management, asset management, custody, stockbroking, investment banking and global market businesses during the year. We are committed to sustaining this leadership position in 2014 and beyond. We will continue to take advantage of the opportunities across our diverse business operations to increase our revenues and market share in line with our strategy. We remain determined to deliver value to our shareholders and provide a best in class service to our customers, whilst positioning our business for long term sustainable growth Financial highlights Income Statement Gross earnings of N111.2 billion, representing 21% increase (December 2012: N91.9 billion) Net interest income of N37.0 billion, up 10% (December 2012: N33.6 billion) Non interest revenue of N48.2 billion, up 42% (December 2012: N33.9 billion) Total operating income of N85.2 billion, an increase of 26% (December 2012: N67.4 billion) Profit before tax of N24.6 billion, up over a 100% (December 2012: N11.4 billion) Profit after tax of N20.8 billion, up over a 100% (December 2012: N10.2 billion) Cost to income ratio of 68.0% (December 2012: 72.8%) Pre tax return on average equity of 27.7% Post tax return on average equity of 21.0%
Balance sheet Total assets up 13% to N763.0 billion (December 2012: N676.8 billion) Gross loans & advances to customers up 9% to N303.3 billion (December 2012: N279.5 billion) Non performing loans declined by 6% to N13.4 billion (December 2012: N14.3billion) Non performing loans to total loans ratio of 4.4% (December 2012: 5.1%) Customer deposits, up 17% to N416.4 billion (December 2012: N355.4 billion) Deposit mix improved to 52% (2012: 43%) of low cost deposits to total deposits Significant improvement across all three divisions Personal and Business Banking (PBB) (Banking and other financial services for individuals and small to medium sized enterprises): Total income of N25.4 billion, up 8% (2012: N23.5 billion). Commenting on performance, Obinnia Abajue, executive director responsible for the division said: Our retail business gross revenue increased by 16%, despite the high interest rate environment which negatively impacted margins as well as the quality of risk assets in 1Q 2013. Net interest income remained flat at N18.4 billion as a result of increase in interest expense. Notwithstanding regulatory induced reduction in transaction fees, noninterest revenue was up 34% to N6.9 billion (2012: N5.2 billion) which was driven by growth in documentation and administration fees resulting from our growing loan book, growth in card related fees as a result of our high ATM uptime and growth in account transaction fees. We are committed to ensuring cost and operational efficiency aimed at reducing operating costs. Deposit liabilities grew by 21% to N197.9 billion (2012: N164.0 billion) on the back of our growing customer base and enhanced service delivery, resulting in an improvement in the deposit mix to 59% from 56% in 2012. Loans and advances grew 27% in line with our strategy focusing on lending to the personal markets, SMEs and small local corporates. Significant strides were made during the year as number of customers crossed the 1 million mark and we continued the expansion of our service delivery channels. We will continue to deliver exceptional services to our customers, offering a bouquet of products to meet their financial needs. Corporate and Investment Banking (Corporate and investment banking services to larger corporate, financial institutions and international counterparties): Total income of N41.2 billion up 38% (2012: N29.8 billion). Commenting on performance Victor Williams, executive director in charge of the division said: We improved on our performance and maintained leadership in various business segments within our corporate and investment banking business in 2013. Net interest income increased 23%, while non interest revenue grew significantly by over 50%. Our ability to increase customer transaction volumes and take advantage of volatility in the foreign exchange and interest rate markets impacted positively on our non interest revenues. The positive trend in the capital market also had a favourable impact on the revenue from our stockbroking and custody businesses. Our ability
to close good advisory mandates in our investment banking business contributed significantly to the growth in fees and commissions revenue. Despite the testing operating environment, we grew our deposit book by 14% with low cost deposits accounting for 46% of total deposits, while our loan book declined by 3% as a result of our conscious effort to compete for good quality credit. We will continue to focus on growing our risk assets and further deploying our varied portfolio of products across the country to maximise revenue streams and continue to be market leaders in our investment banking, global markets, custody and stockbroking businesses Wealth (Investment management in the form of asset management, pension fund administration and trustee and estate planning services): Total income growth of 33% to N18.7 billion (December 2012: N14.1 billion). Demola Sogunle, chief executive officer of Stanbic IBTC Pension Management Limited said: Our performance improved significantly in 2013 as evidenced by 33% increase in total income, while efficiently managing our operations to reduce operating expenses by 3%. This resulted to 64% increase in profit before tax to N12.3 billion (2012: N7.5 billion) and profit after tax increase of 50% to N8.4 billion (2012: N5.6 billion). Cost to income ratio improved to 34.3% from 46.8% recorded in 2012. The pension business retained its leadership position in the pension industry in terms of assets under management, revenue and number of retirement savings accounts. The improved performance of the capital market also impacted positively on the revenue of the non pension asset management business. Assets under management increased by 33% to N1.32 trillion and number of retirement savings accounts also increased 16% to over 1.2 million as at 31 December 2013. We will continue to focus on providing excellent customer service to our customers and continue to maintain leadership position in our wealth business. Capital and liquidity The group maintained a strong and diversified funding base in 2013. Deposit from customers grew 17% to N416.4 billion, representing 63% of total liabilities and funded 55% of total assets. The group s liquidity ratio stood at 89.1% at the end of 2013 (2012: 49.8%). This ratio is significantly higher than the 30% regulatory minimum. The group s capital adequacy ratio remained well above the minimum statutory requirement of 10%, with Tier 1 capital adequacy ratio of 22.0% (Bank: 16.6%) and total capital adequacy ratio of 24.5% (Bank: 18.3%). The Group s capital is deemed adequate to drive business growth and support business risks and contingencies for the foreseeable future. Operational and reporting highlights Crossed 1 million mark in banking Customers Achieved asset under management in excess of N1 trillion Crossed N1 trillion in assets under custody ATM network continued to achieve excellent uptime through out the year
Launched a non interest islamic compliant mutual fund The Stanbic IBTC Iman fund. Awards & Recognition in 2013 Best Broker in Nigeria, EMEA Finance for the second year running Best Investment Bank in Nigeria, EMEA Finance Banking Award, 2013 for the second year running Best Bank in Africa, Euromoney Real Estate Award, 2013 for the second year running Best Custodian in Nigeria 2013 by Global Investor for the sixth year running The Most Active Dealing Member Firm (Stockbroking) The Nigerian Stock Exchange CEO Award 2013 Best Investment Management Company in Nigeria World Finance (awarded to Stanbic IBTC Asset Management) Best Foreign Exchange Provider in Africa and Nigeria Global Finance Awards 2013
Conference call and audio webcast for results Stanbic IBTC (Bloomberg: IBTCCB NL) will be hosting a webcast and teleconference call for analysts and investors on Tuesday 8 April 2014 at 2pm Lagos (1pm London / 9am New York / 3pm Johannesburg) with its senior management to announce Stanbic IBTC Holdings PLC s audited results for 31 December 2013. There will be an opportunity at the end of the call for management to take questions from investors and analysts. Participants can log on to the link below to access the webcast: https://event.onlineseminarsolutions.com/r.htm?e=776252&s=1&k=1c96d651a9a3dd3a266aef0c1e8 5AF33 The back up teleconference call facility can be accessed by dialling: UK Toll Number: +44 (0) 2031394830 UK Toll Free Number: 08082370030 US Toll Number: +1 718 873 9077 US Toll Free Number: +1 866 928 7517 South Africa Toll Number +27 021 672 4008 South Africa Toll free Number 0800 222 290 Participant Pin Code 40058783# Participants should register for the call/log on at least five minutes before the start of the presentation. The presentation will also be posted to Stanbic IBTC s website in the morning of the Tuesday 8 April 2014 at www.stanbicibtc.com. If you have any queries please do not hesitate to contact the following persons listed below. FOR FURTHER INFORMATION: Stanbic IBTC Holdings PLC Henry Anah (Investor Relations) +234 1 422 8742 Arthur Oginga (Chief Financial Officer) +234 1 422 8746 APFD (Investor Relations advisers) Nick Chambers +234 813 574 3544 Oberhi Majoroh +234 805 193 7592 Paul Marriott +44 207 269 7252 ENDS
Notes to editors: About Stanbic IBTC Holdings PLC Stanbic IBTC Holdings is a member of Standard Bank Group. Standard Bank Group is Africa s largest banking group ranked by assets and earnings and has been in business for over 150 years. With a controlling stake of 53.2% in Stanbic IBTC Holdings PLC, Standard Bank employs over 52,000 people worldwide; operates in 18 African countries including South Africa and 12 countries outside Africa including key financial centres like Europe, United States and Asia. Stanbic IBTC Holdings strategy is to position itself as the leading end to end financial services solutions provider in Nigeria. The group offers expert services in three business areas corporate and investment banking; personal and business banking and wealth management. With a team of experienced and customer focused staff, Stanbic IBTC offers services which include specialised finance, trade finance, stockbroking, trusteeship, global markets, custodial services, asset and pension management, foreign exchange, lending, savings and investment products. More information can be found at www.stanbicibtc.com