STANBIC HALF YEAR 2019 PAT DEEP BY 15.87% TO N36.245B

FINANCIAL PERFORMANCE -REVIEW
 
Gross Earnings: The Bank’s gross earnings for its half year report inched higher marginal by 2.77% to N117.374Billion compared with the gross earnings of N114.207 Billion earned as at 30th June, 2018, this growth was as a result of significant appreciation recorded on Trading Revenue and Other Revenue, as they both increased by 10.18% and 9.87% respectively. Trading Revenue growth was driven by fixed income earnings and Other revenue was driven by gain from disposal of financial investment.
 
Revenue: The Bank’s Core Revenue was able to deliver just a marginal growth of 1.44% , as it posted a revenue of N60.784 Billion for 2019 half year as against N59.924 Billion for 2018 half year, that was majorly driven by Interest Income on loans and advances to Banks, given a 3.27% appreciation.
 
Total Operating Cost: The clog to the Banks bottom line for the half year period was majorly its total operating cost, as all these cost element did increase; Interest expense, operating expense and Tax expense inched higher by 8.70%, 2.65% and 9.93% respectively. Interest Expense increase was driven by the 77.76% increase recorded on borrowed fund interest payment made by the Bank for its own facilities, while Operating Expense, major outliner was other operating expense that inched up by 10% and the increase on Tax Expense was as a result of carried forward deferred tax now recognized during the current year.
 
Bottom Line: The decline in the Bank’s PAT is best explained as a function of a declining rate of growth in Revenue line, compared to the increasing pace of growth in the firms operating cost elements, as such the Bank recorded a 15.87% decline in its PAT, as at half year of 2019, the Bank posted PAT of N36.245 Billion, while 2018 half year PAT stood at N43.084 Billion.
STANBIC HY PAT DEEP BY 15.87%-PDF DOWNLOAD