In the year so far, Stanbic recorded slow growth in topline and bottom-line due to lower asset yield and lower credit writebacks. The continued wind-down of expensive deposits and its replacement with low-cost deposits saw its deposit liabilities decline by 3.20%. Nonetheless, Stanbic recorded a 24.14% growth in its loan portfolio as the bank tried to meet the 60% regulatory loan to deposit ratio minimum. The loan to deposit ratio settled at 62.90% by Q3:2019. Following Stanbic’s performance in the year so far and an expectation of muted growth in its asset management fees owing to the regulatory induced fee reduction, we revised our growth projections in gross earnings (+4.04%). Owing to our expectation of lower credit writebacks by 2019FY, we anticipate a 4.33% decline in PAT to NGN71.21bn. Kindly find attached the full report.
Earnings Update- STANBIC: 9M 2019.
In the year so far, Stanbic recorded slow growth in topline and bottom-line due to lower asset yield and lower credit writebacks. The continued wind-down of expensive deposits and its replacement with low-cost deposits saw its deposit liabilities decline by 3.20%. Nonetheless, Stanbic recorded a 24.14% growth in its loan portfolio as the bank tried to meet the 60% regulatory loan to deposit ratio minimum. The loan to deposit ratio settled at 62.90% by Q3:2019. Following Stanbic’s performance in the year so far and an expectation of muted growth in its asset management fees owing to the regulatory induced fee reduction, we revised our growth projections in gross earnings (+4.04%). Owing to our expectation of lower credit writebacks by 2019FY, we anticipate a 4.33% decline in PAT to NGN71.21bn. Kindly find attached the full report.