The first half of 2020 has been regarded by analysts to be one of the toughest economic periods ever to be experienced in the Nigeria in decades.
H1 of 2020 was characterized by a convergence of two crises that both significantly affected the global economy.
The oil price crash occasioned by an oil war between Russia and Saudi Arabia was the first to affect Nigeria an economy heavily reliant on the oil industry.
Oil prices fell sharply from highs of US$65 at the start of the year to lows of US$24 a barrel towards the end of the second quarter, removing billions of dollars from Nigeria’s projected revenues and pushing oil operator into loss making.
The oil crisis was quickly followed by a corona virus pandemic which threatened to completely paralyses the country with authorities imposing lockdowns to prevent spread of the disease.
Despite of these challenges, Stanbic IBTC was able to record a profit after tax of US$117.23 million for the half-year ended June 30, 2020.
This represents an increase of 24.72 per cent over its half-year profit after tax of 2019 which was US$94.01 million.
The Bank’s profit before tax for H1 2020 was US$135.93 million, representing a 17.37 per cent increase over 2019 figures which stood at US$115.80 million.
The group gross earnings rose to US$328.26 million from US$304.40 million, accounting for a growth of 7.83 per cent.
In Q1 of this year, Stanbic IBTC posted a marginal rise in profitability.
The Bank’s profits profit before tax for Q1 2020 stood at US$63.28 million, a slight increase when compared to the US$60.95 million achieved during the same period in 2019.
Gross earnings for the quarter stood at US$159.24 million, showing an increase of 4.6 per cent over the US$152.24 million recorded in the corresponding period of 2019.
Net interest income fell 8.3 per cent from US$52.39 million to US$47.98 million, while Operational expenses increased from US$60.95 million to US$64.32 million.
Stanbic IBTC holdings has been operational in Nigeria for the past 30 years and has operations in all the country’s 36 states.