Stanbic Bank Plc 3 Months 2017 Financial Summary

3 Months STANBIC BANK PLC
	2017 N'000	2016 N'000	change	Year End
Revenue	47,022,000	34,780,000	35%	December
Profit/Loss before taxation	18,626,000	10,243,000	82%
Profit/Loss for the period	16,074,000	7,791,000	106%
Issued Shares (Units)	10,000,000,000	10,000,000,000
Basic Earnings Per Shares (Kobo)	155.00	68.00	128%
Last total dividend paid (Kobo)

Stanbic Bank picked up where it closed last year with a growth of 35% in revenue year on year and 12.44% quarter on quarter. On the other hand, Stanbic grew its profit by 106% year on year and 93.61% quarter on quarter.

A closer look at the result shows that interest income grew by 52.27% and trading revenue by 153.85% .

The company was able to stabilize staff cost as it was stable within the period,  however operating expenses increased by 25.97%.

We also noted that loans and advances to customer declined by 2.67% but Credit impairments for loans and advances increased by 17.49% from #22.3billion to #26.2billion in 2017. Specific credit impairments was 65.38% of the amount while Portfolio credit impairments was 35.11% .

Segment Reporting:

The corporate & investment Banking arm remains the most lucrative as it made a total of #10.9billion out of #16.07billion made by the company in Q1.

The Capital adequacy declined to 21.5% against 22.8% same period last year.

The Market reaction to the result was swift as the stock closed at #21.49k from #20.47k thereby gaining 4.98%. 

We noticed the trend towards government securities by the banks and we belief the trend would continue into the year as long as the rates are friendly. 

The Market is still awaiting the re-announcement of its Rights issue that was shelved due to the problem it had with Financial Reporting Council (FRC). While we wait let us see where it would rally to.