Analysis of Financial Results - thevault.exchange

Analysis of Financial Results

Stanbic IBTC Holdings PLC

For the six months ended June 2022

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Group results in brief

Balance sheet analysis

Business unit review

Capital management

Income statement analysis

Market and shareholder information

Other information

0608101315161718192022

606265687072

262728293338

7879

444749525356

8283

8687

Performance highlightsFinancial results, ratios and statisticsEconomic and capital market statisticsOverview of financial results Group statement of comprehensive incomeGroup statement of other comprehensive incomeGroup statement of profit or loss – Quarterly analysisGroup statement of financial positionGroup financial position – Quarterly analysisGroup statement of changes in equityGroup statement of cash flows

Overview of Group consolidated assetsLoans and advancesLoans and advances performanceAsset qualityDeposit and current accountsFunding and liquidity

Segmental structure for key business units Segmental highlightsSegmental income statementCorporate and Investment BankingConsumer and High Net Worth ClientsBusiness and Commercial Clients

Return on ordinary equityRisk–weighted assets

Overview of Group incomeNet interest income and margin analysisNon-interest revenueCredit impairment chargesOperating expensesTaxation

Market capitalisation and price-to-book ratioEquity and range analysis

Financial and other definitionsContact details

32

ANALYSIS OF FINANCIAL RESULTS FOR THE SIX MONTHS ENDED JUNE 2022STANBIC IBTC HOLDINGS PLC

01Group results in brief

Performance highlightsFinancial results, ratios and statisticsEconomic and capital market statisticsOverview of financial resultsGroup statement of comprehensive incomeGroup statement of other comprehensive incomeGroup statement of profit or loss - Quarterly analysisGroup statement of financial position Group financial position - Quarterly analysisGroup statement of changes in equityGroup statement of cash flows

0608101315161718192022

5

ANALYSIS OF FINANCIAL RESULTS FOR THE SIX MONTHS ENDED JUNE 2022

GROup Results In BRIeF 54

Performance highlights

₦3,148.86 billiontotal assets(FY 2021: ₦2,742.76 billion) up 15%

₦30.67 billionprofit after tax up 36%

59.9%Cost-to-income ratio (H1 2021: 70.3%)

2.62%npl/total loan ratio (FY 2021: 2.1%)

AAA (ng)GCR rating(FY 2021: AA+ (ng))

₦1,092.97 billionGross loans and advances(FY 2021:₦946.26 billion) up 16%

₦113.31 billion total income up 44%

15.7%Return on average equity (H1 2021: 12.1%)

15.0%Capital adequacy ratio (Bank) (H1 2021: 17.5%)

1.2 timesprice to book(FY 2021: 1.3 times)

₦1,190.02 billion Customer deposits (FY 2021: ₦1,126.54 billion) up 6%

₦39.98 billionprofit before tax up 62%

1.1%Credit loss ratio (H1 2021: (0.1%))

112.62%liquidity ratio (Bank) (statutory minimum: 30%)

AAA (nga)Fitch rating(FY 2021: AAA(nga))

0

10000

20000

30000

40000

50000

60000

70000

80000

Non-interest based revenue

Interest based revenue

H1 2022H1 2021H1 2020H1 2019H1 2018

₦’million

59,924

54,283

60,78456,590

55,130

71,440

44,22948,451

68,24865,456

946

1,1271,093

1,190

0

200

400

600

800

1000

1200

H1 2022FY 2021H1 2021FY 2020H1 2020

₦’billion

603

769

655

820 791

968

All results in this booklet are presented on an

IFRS (International Financial Reporting Standards)

basis except where otherwise stated.

Interest based and non-interest-based revenue CAGR (H1 2018 - H1 2022): Interest based: (3%) Non-interest based: 5%

Gross loans and customer deposits CAGR (H1 2020 - H1 2022): Gross loans: 16% Customer deposits: 12%


Non-interest based revenue

Gross loans

Customer deposits

7


GROup Results In BRIeF6

STANBIC IBTC HOLDINGS PLC

Stanbic IBTC Group Change % H1 2022 H1 2021 FY 2021

Balance sheet

Total assets ₦’million 15 3,148,856 2,427,364 2,742,764

Loans and advances (net of credit impairments) ₦’million 15 1,062,846 759,595 921,044

Deposits from customers ₦’million 6 1,190,016 958,370 1,126,535

Key performance indicators

Net interest margin % 3.5 2.7 2.9

Non-interest revenue to total income % 55.6 58.3 56.0

Cost-to-income ratio % 59.9 70.3 62.3

Return on average equity % 15.7 12.1 14.7

Return on average assets % 2.0 1.8 2.1

Basic earnings per share kobo 18 226 192 420

Net asset value per share kobo 0.4 2,852 3,047 2,840

Shareholders' equity ₦’million 0.4 369,493 338,430 368,016

Other indicators

Price-to-book (P/B ratio) times 1.2 1.3 1.3

Effective tax rate % 23.3 8.8 13.7

Total number of employees Number 1.7 2,945 2,974 2,895

Financial results, ratios and statistics

Banking activities Change % H1 2022 H1 2021 FY 2021

Balance sheet

Total assets ₦’million 16 3,021,618 2,347,453 2,613,841

Loans and advances (net of credit impairments) ₦’million 15 1,062,845 759,596 921,044

Deposits from customers ₦’million 6 1,208,589 968,073 1,139,269

Selected returns and ratios

Net interest margin % 3.4 2.7 2.9



Return on average equity % 13.6 6.7 11.9

Return on average assets % 1.2 0.7 1.2

Impairment charges on loans and advances ₦’million 5,081 (787) (740)

Credit loss ratio % 1.1 (0.1) (0.1)

Tier 1 capital adequacy % 14.0 16.4 14.7

Total capital adequacy % 15.0 17.5 16.1

Non-performing loans % 2.6 3.2 2.1

Effective tax rate % 7.9 (201.0) (24.9)

Total number of employees Number 1 1,922 2,042 1,902

98


GROup Results In BRIeF

Economic and capital market statistics

Macroeconomic highlights:Globally The World Bank revised its 2022 growth forecast downwards. Global GDP is now expected at 2.9%, from April 2022’s 3.2% estimate, and the 4.1% estimate in January 2022. The bank cited surging energy and food prices, supply disruptions due to the Ukraine invasion, and monetary policy tightening by central banks as drivers of the downward revision. Low and middle-income nations are expected to have the largest negative impact with 60% of the poorest nations already in, or at risk of debt distress.

Central banks have intensified their monetary tightening cycle to contain the high inflationary pressures. The Federal Open Market Committee (FOMC) raised the federal funds rate by 75bps at the June policy meeting, the largest hike since 1994. Similarly, the Bank of England (BOE) raised policy rate by 25bps. The persistent rising inflation pressures and the tight labour market conditions still serves as a driver for the monetary policy stance.

Notably, inflation in the global space continues to be the broader concern, across developed and emerging markets. The US CPI print for June 2022 reached a record high of 9.1% y/y well ahead of market expectations of 8.8% y/y. The persistent inflationary pressures remains exacerbated by the energy price surge and supply change disruption arising from the Russia-Ukraine conflict. Notably, energy cost and food prices continues to drive the high inflation. We expect the inflationary pressures to remain elevated in the short to medium term following surging commodity prices and persisting supply chain disruptions.

The ongoing tension between Russia/Ukraine have further intensified the supply chain challenges yet to be recovered from the covid-19 pandemic.

This has further intensified inflationary pressures as commodity prices have remained largely elevated during the period. Brent crude rose from USD 77.78/ bbl in December 2021 to USD 114.81/bbl in June 2022.

China reimposed lockdown measures given the resurgence of covid-19 disease in the region. This significantly impacted on economic activities in the affected region and has reflected in the low growth of 0.4% experienced in Q2: 22. This is the lowest record since the first quarter of 2020.

Nigeria Nigeria also faces the challenge of rising inflation, similar to the global economy. Headline inflation for June 2022 rose to 18.60% y/y from 17.71% y/y in May 2022, the highest print in 5-y. On a month-on month basis, headline inflation also rose by 4bps to 1.82%. In recent times, the rise in prices was broad-based across the food and non-food basket. Notably, inflation has partly been impacted by the surge in energy prices given the impact on deregulated petroleum products.

Central Bank of Nigeria’s Monetary Policy Committee increased policy rate by 150bps to 13% at its May 2022 meeting; the first hike since 2016. The MPC believes that the up trend in inflation and the likely sustained price pressures in near term, necessitated a swift monetary policy action. This is also following the monetary policy tightening spree seen in the global space. Despite the policy rate hike, the committee believes that economic growth should still pose strong at 3.24% in 2022.

Nigeria’s GDP growth printed at 3.54%y/y for Q2 2022, up from 3.11% y/y in Q1 2022.

The growth was largely driven by the non-oil sector. Output from the oil sector however declined by 11.77% due to oil thefts and pipeline sabotages. Non-oil GDP was supported by the continued expansion in economic activities across the services, agriculture, and manufacturing sectors. We project GDP growth of 3.8% for 2022 compared with IMF's projection of 3.4%. The non-oil sector posted a growth of 6.08% in Q1 2022 while the oil sector continued to be a drag on growth, further contracting by 26%y/y, an all-time low even as oil production level was at 1.49mbpd (including condensates) compared to 1.72 for the same period in 2021.The Stanbic IBTC Bank Purchasing Managers Index (PMI) revealed a solid expansion in the private sector during the period, averaging 54.3 in H1 2022 compared to an average of 52.8 in H1 2021, as business activities improved considerably following the easing of public health restrictions.

The rising oil price has been more of a concern for Nigeria given petrol subsidy impact and production decline. In June, oil production was at 1.24mbpd (excluding condensates) lower than OPEC+ quota of 1.8mbpd and budgeted number of 1.6mbpd. Nigeria’s oil production levels have continued to under perform amidst the rising petrol subsidy cost. On the back of this, the Federal government revised downward the oil production expectation to 1.6mbpd from 1.88mbpd in the initially approved budget. We maintain the view that oil production will likely maintain it's suboptimal state in near term.

The build-up to the 2023 general elections is gaining momentum as political party’s primaries have been concluded and the flag bearers have emerged.

share price performance: H1 2022 (rebased to 1)

The major stock market indices went in different directions year-to-date. The NGX ASI appreciated by 21% while the Banking Index depreciated 2%. Similarly, Stanbic IBTC’s share price depreciated by 7.3% to close at ₦33.55 as at 30 June 2022 in line with the bearish market. During the first half of 2022, the Stanbic IBTC share price peaked at ₦38.00 on 04 January 2022 and recorded its lowest point at ₦32.15 on 14 April 2022.

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Stanbic IBTC Share priceNSE All Share IndexBanking Index

Top contenders in our view are the National leader, Bola Ahmed Tinubu of the ruling All Progressive Congress (APC), Former Vice President Atiku Abubakar of the People’s Democratic Party (PDP) and Former Governor Peter Obi of the Labour Party. Interestingly, we see the key candidates as broadly pro-business with the potential of an improved investment climate under the tenure of whoever emerges in the medium term.

FX reserves remain at robust levels; closed the period at USD39.16bn (9.4-m import cover), rising from USD38.42bn (9.2-m import cover) in mid-Jun.

However, FX liquidity concerns persist with FPIs backlog estimated at about 800m-1bn. Interestingly, the rate at which the banks have been trading at the investors and exporters FX window (IEFX) have experienced series of changes this year.

In January, at the IEFX window, the USD/NGN pair was trading within the range of ₦415-₦417, with NAFEX print at ₦415 levels mostly. As at May, the band had expanded to ₦415-₦424, with NAFEX reaching ₦418-₦419 level.

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YoY Change % H1 2022 H1 2021 FY 2021

Economic indicators

Headline inflation (period average) % - 16.4 17.6 16.98

GDP growth % - 3.5 5.01 3.4

External reserves $’billion 17 39.1 33.3 40.5

Official exchange rate (period end) ₦/$ 1 415.8 410.2 413.5

Market Indicators

NSE All Share Index ₦’billion 37 51,802.5 37,907.3 42,716.4

NSE turnover ₦’billion 34 638.1 474.8 907.4

Average daily activity million 6 395.1 374.4 349.9

Aggregate market capitalisation ₦’trillion 35 50.2 37.2 42.1

Equity market capitalisation ₦’trillion 41 27.9 19.8 22.3

Stanbic IBTC share statistics

Share price

High for the period kobo (28) 3,800 5,290 5,290

Low for the period kobo (17) 3,215 3,870 3,600

Closing kobo (17) 3,355 4,025 3,600

Shares traded

Volume of shares thousands (26) 129,992 176,273 335,763

Value of shares ₦’million (42) 4,545.9 7,831.7 14,023.8

Market capitalisation ₦’billion (17) 434.7 521.5 466.5

Economic and capital market statistics(Continued)

Overview of financial results

share price performance: The major stock market indices returned both positive and negative with some stocks gaining points while some lost points year-to-date. The NGX ASI increased by 21%, while the Banking Index declined by 2%. On the other hand, Stanbic IBTC’s share price depreciated by 7% to close at ₦33.55 as at 30 June 2022 in line with the bearish market sentiments. Stanbic IBTC share price recorded its highest point at ₦38.00 in the start of the year on 04 January 2022 and recorded its lowest point at ₦32.15 on 14 April 2022.

Operating environment The Nigerian economy continues to improve gradually as seen in the Q2 2022 GDP growth rate of 3.5% year-on-year (YoY) driven by robust improvement in the non-oil sectors such as ICT, trade, transport, agriculture, and manufacturing. Nigeria's total merchandise trade stood at ₦13.01 trillion in Q1 2022, representing 11% increase over the value recorded in Q4 2021 (₦11.7 trillion). Similarly, total exports increased by 23.13% when compared to the fourth quarter of 2021 (₦5,766.62billion) and by 137.88% of the value recorded in the first quarter of 2021 (₦2,984.93 billion). On the other hand, total imports decreased by 0.67% when compared to the value recorded in the preceding quarter (₦5,940.58billion).

The headline inflation rose slightly from 15.60% YoY in January 2022 to 15.92% YoY in March 2022 but witnessed a sharp increase in Q2 2022, to 18.60% YoY in June 2022. In Q1 2022 inflation averaged 1.61% month-on-month, while the 3-month average till June 2022 was 1.77% month-on-month. The increase in the headline inflation is mainly attributed to increase across the food and non-food baskets.

Food inflation rose to 20.80% YoY in June 2022, from the 17.13% YoY recorded in January 2022 as the agricultural sector faces both worsening security and climate change as well as geopolitical problems such as the rising cost of fertilizer due to the Ukraine war. Core inflation, on the other hand, also increased to 15.75% YoY in June 2022 from 13.87% YoY in January 2022.

During the period, the Country’s foreign exchange (FX) reserves witnessed a decline from $40.52 billion as at 31 January 2022 to $39.10 billion in June 2022. This was attributed to the weak accretion of reserves from exports and the high cost of importing of refined petroleum products. Following relatively tighter liquidity conditions in Q2 2022 and increased issuances from the Debt Management Office, we presume that yields may keep rising this year, supported by ambitious domestic revenue mobilization targets and likely more costly fuel subsidies. The CBN adjusted the official rate from ₦416.26/$1 at the beginning of the year to ₦415.77/$1 in June 2022. Meanwhile, exchange rate at the IEFX window closed at ₦425.05/$1 in June 2022, from ₦415.79/$1 in January 2022.

The Monetary Policy Committee of the Central Bank of Nigeria (CBN) at its third meeting for the year increased the Monetary Policy Rate (MPR) by 150bps to 13.00%, the first hike since 2016. The Committee noted that the increase became necessary to contain inflationary pressures. We expect the CBN to increase MPR further by 50-100bps later in the year if inflationary pressures continue to heighten.

Our results The Group’s profitability grew in the first half of 2022 by 36% relative to the same period in prior year. This was largely due to higher net interest income, fees and commission income and substantial trading gains of above 100%. Increase in interest margins is from growth in loan yields, following reported improvement in earnings across the business segments due to accelerated risk asset growth during the period. The growth was partly offset by YoY increase in operating expenses, higher taxation, as well as impairment charge recorded as at June 2022. Our capital and liquidity positions remained robust and well above regulatory limits in H1 2022.

Income statement analysis The Group’s total income grew by 44% to ₦113,310 billion in H1 2022 (H1 2021: ₦78,788 billion) as net interest income and non-interest revenue increased by 53% and 37% YoY respectively.

Net interest income Net Interest income grew by 53% to ₦50.35 billion in H1 2022 from ₦32.88 billion achieved in H1 2021 attributable to the increase in volume and yield on cumulative average risk assets. This is also coupled with increased income from financial investments earned for the period under review. Interest earned on loans grew due to the accelerated growth in volume of cumulative loans. The growth was partly muted by YoY increase in interest expense attributable to interest incurred from growth in our deposits.

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Non-interest revenue Non-interest revenue, which comprises revenue from fees and commission, trading, and other non-interest-bearing revenue sources, grew by 37% to ₦62.96 billion (H1 2021: ₦45.91 billion). The increase in NIR is on the back of 10% growth in net fees and commission revenue, above 100% growth in trading revenues ₦16.32 billion (H1 2021: ₦5.47 billion) and growth in other revenues.

Credit impairment Credit impairment was a charge of ₦5.47 billion in H1 2022 as against the write back of ₦1.28 billion in the prior year. This is following the increase in gross loans by 16% YoY leading to a credit loss ratio of 1.1%. Impairment increased across our business segments for the period under review. Operating expenses Operating expenses increased by 23% YoY to ₦67.87 billion. Cost-to-income ratio improved to 59.9% from 70.3% in H1 2021 as total income rose by 44%.

Growth in total income was due to 53% growth in NII and 37% growth in NIR backed by growth in interest income and net fees and commission. Staff cost increased by 22% to ₦24.68 billion in H1 2022 due to the annual salary review and deferred bonus provision. The increase in other operating costs arose from regulatory-induced costs including AMCON and deposit insurance premium, marketing and advertising, training expenses coupled with the non-occurrence of some provision releases recorded in prior year.

Also, the impact of currency depreciation and the full resumption of business activities led to increase in communication expenses, information technology, stationery and printing, premises and maintenance costs.

Overall, the Group’s profit before tax increased by 62% to ₦39.98 billion (H1 2021: ₦24.71 billion), while profit after tax also increased by 36% to ₦30.67 billion (H1 2021: ₦22.54 billion). This, in addition to increased average shareholder equity resulted in the increase in return on equity to 15.7% (H1 2021: 12.1%).

Balance sheet analysis The Group’s total assets grew by 15% to close at ₦3.15 trillion as at H1 2022, compared to ₦2.74 trillion recorded in FY 2021. This arose from 14% growth in financial investment, 88% growth in trading assets and 23% growth in cash and cash equivalent. Customer deposit also grew by 6% to ₦1.19 trillion (FY 2021: ₦1.13 trillion).

Loans and advances Net customer loans and advances grew by 15% to ₦1,062.85 billion in the first six months of 2022 (FY 2021: ₦921.04 billion) as a result of additional facilities granted to support our clients’ aspirations across various sectors such as manufacturing, oil and gas, general commerce and construction.

Non-performing loans increased by 41% to ₦28.69 billion in H1 2022 from ₦20.34 billion in FY 2021 on account of increased borrowing

to customers across the different businesses. This also resulted in NPL ratio of 2.62% (FY 2021:2.1%)

Funding and liquidity Customer deposits closed at ₦1.19trillion in H1 2022 increasing by 6% from ₦1.13 trillion recorded in FY 2021. Current account grew by 11%, Savings account grew by 5% while Call account increased by 60%, Term deposit declined by 27%. The decline in term deposit is in line with the Groups effort to de-emphasize expensive deposit and reduce cost of funds. The increase in current and savings account resulted in the improvement of the ratio of current and savings deposits to total deposits (CASA ratio) to 68.6% in H1 2022 from 66% in FY 2021

The Group continued to maintain its strong liquidity position within approved risk appetite and tolerance limits throughout the half year ended 30 June 2022. The liquidity ratio closed at 121.31% (Bank: 112.62%) in H1 2022 higher than the regulatory minimum of 30%.

Capital adequacy The Group maintained adequate levels of capital during the half year which was higher than the levels required for regulatory compliance. The Group manages its capital levels to support business growth, maintain depositor and creditor confidence and create value for shareholders whilst ensuring regulatory compliance.

Overall, the Group’s profit before tax increased by 62%

Statement of comprehensive income Group

Change%

H1 2022 ₦’million


FY 2021 ₦’million

Net interest income 53 50,353 32,879 75,372

Interest income 54 68,248 44,229 104,751

Interest expense 58 (17,895) (11,350) (29,379)

Non-interest revenue 37 62,957 45,909 95,773

Net fee and commission revenue 10 45,563 41,256 82,877

Fee and commission revenue 10 48,198 43,882 88,321

Fee and commission expense 0 (2,635) (2,626) (5,444)

Income from life insurance activities 62 136 84 176

Insurance premium received >100 1,166 215 852

Insurance premium revenue ceded to reinsurers >100 (403) (61) (354)

Insurance benefits and claims paid >100 (627) (70) (322)

Trading revenue >100 16,320 5,473 13,286

Other revenue >(100) 938 (904) (566)

Total income 44 113,310 78,788 171,145

Net impairment write-back/(loss) on financial assets >(100) (5,467) 1,284 1,505

Income after credit impairment charges 35 107,843 80,072 172,650

Operating expenses 23 (67,865) (55,365) (106,647)

Staff costs 22 (24,680) (20,200) (42,041)

Other operating expenses 23 (43,185) (35,165) (64,606)

Profit before tax 62 39,978 24,707 66,003

Direct Tax >100 (9,309) (2,164) (9,037)

Profit for the period 36 30,669 22,543 56,966

Profit attributable to:

Non-controlling interests 8 1,371 1,275 2,588

Equity holders of the parent 38 29,298 21,268 54,378


1514



Statement of other comprehensive income Group




Profit for the period 30,669 22,543 56,966

Other comprehensive (loss) / income

Items that will never be reclassified to profit or loss

Movement in equity instruments measured at fair value through other comprehensive income (OCI) (1) 112 999

Net change in fair value (1) 112 999

Related income tax - - -

Items that are or may be reclassified subsequently to profit or loss:

Movement in debt instruments measured at fair value through other comprehensive income (OCI) (1,884) (14,197) (5,666)

Total expected credit loss (214) (52) 37

Net change in fair value (1,544) (15,856) (7,285)

Realised fair value adjustments transferred to profit or loss (126) 1,711 1,582

Related income tax - - -

Other comprehensive income for the year net of tax (1,885) (14,085) (4,667)

Total comprehensive income for the year 28,784 8,458 52,299

Total comprehensive income attributable to:

Non-controlling interests 1,393 1,069 2,367

Equity holders of the parent 27,391 7,389 49,932

28,784 8,458 52,299

Group statement of profit or loss Quarterly analysis

QoQChange

%

Group Q2 2022 ₦'million

Group Q1 2022

₦'million

Group H1 2022

₦'million

Net interest income 15 26,920 23,433 50,353

Interest income 7 35,252 32,996 68,248

Interest expense (13) (8,332) (9,563) (17,895)

Non-interest revenue (5) 30,599 32,358 62,957

Net fee and commission revenue 10 23,849 21,714 45,563

Fee and commission revenue 8 25,071 23,127 48,198

Fee and commission expense (14) (1,222) (1,413) (2,635)

Income from life insurance activities >100 420 (284) 136

Insurance premium received >100 983 183 1,166

Insurance premium revenue ceded to reinsurers (22) (176) (227) (403)

Insurance benefits and claims paid 61 (387) (240) (627)

Trading revenue (45) 5,817 10,503 16,320

Other revenue 21 513 425 938

Total income 3 57,519 55,791 113,310

Net impairment write-back/(loss) on financial assets >100 (4,881) (586) (5,467)

Income after credit impairment charges (5) 52,638 55,205 107,843

Operating expenses (9) (32,259) (35,606) (67,865)

Staff costs (1) (12,301) (12,379) (24,680)

Other operating expenses (14) (19,958) (23,227) (43,185)

Profit before taxation 4 20,379 19,599 39,978

Taxation 5 (4,778) (4,531) (9,309)


Profit attributable to:

Non-controlling interests (11) 647 724 1,371

Equity holders of the parent 4 14,954 14,344 29,298


Key performance indicators

Net interest margin (annualised) % 3.7 3.3 3.5



Return on equity (annualised) % 16.3 15.4 15.7

Return on assets (annualised) % 2.2 2.1 2.0

Non-performing loan to total loan % 2.62 3.6 2.62

Cost of funds (annualised) % 1.8 2.1 2.0

Asset yield % 7.7 7.5 7.5

NIR to OPEX ratio % 0.95 0.91 0.93

Effective tax rate % 23.4 23.1 23.3

1716



Statement of financial position Group

Group financial position Quarterly analysis

1918



Change %




Assets

Cash and cash equivalents 23 804,199 521,401 653,070

Pledged assets (25) 135,891 152,101 182,335

Trading assets 88 185,449 119,219 98,743

Derivative assets (16) 34,529 24,844 41,212

Financial investments 14 726,104 650,958 636,611

Loans and advances 14 1,069,166 767,817 937,140

Loans and advances to banks (61) 6,320 8,222 16,096

Loans and advances to customers 15 1,062,846 759,595 921,044

Other assets 1 130,266 140,081 129,530

Property and equipment 1 43,070 30,645 42,720

Intangible assets (10) 3,590 4,377 4,011

Right of use assets (22) 2,654 3,271 3,394

Deferred tax assets (0) 13,938 12,650 13,998

Total assets 15 3,148,856 2,427,364 2,742,764

Equity and liabilities

Equity 0 377,995 346,441 376,866

Equity attributable to ordinary shareholders 0 369,493 338,430 368,016

Ordinary share capital - 6,479 5,553 6,479

Ordinary share premium - 102,780 102,780 102,780

Reserves 1 260,234 230,097 258,757

Non-controlling interest (4) 8,502 8,011 8,850

Liabilities 17 2,770,861 2,080,923 2,365,898

Trading liabilities >100 235,392 160,550 112,023

Derivative liabilities 4 26,384 13,571 25,364

Current tax liabilities (34) 10,784 9,147 16,441

Deposit and current accounts 9 1,691,858 1,350,926 1,558,397

Deposits from banks 16 501,842 392,556 431,862

Deposits from customers 6 1,190,016 958,370 1,126,535

Other borrowings 5 143,229 97,420 136,434

Debt securities issued 52 72,027 72,128 47,419

Provisions (3) 9,055 8,780 9,302

Other liabilities 26 582,132 368,401 460,518

Total equity and liabilities 15 3,148,856 2,427,364 2,742,764

Q2 2022 ₦’million

Q1 2022 ₦’million


Assets

Cash and cash equivalents 804,199 830,901 653,070

Pledged assets 135,891 137,680 182,335

Trading assets 185,449 188,626 98,743

Derivative assets 34,529 38,339 41,212

Financial investments 726,104 665,635 636,611

Loans and advances 1,069,166 987,639 937,140

Loans and advances to banks 6,320 7,490 16,096

Loans and advances to customers 1,062,846 980,149 921,044

Other assets 130,266 188,150 129,530

Property and equipment 43,070 42,136 42,720

Intangible assets 3,590 3,781 4,011

Right of use assets 2,654 2,853 3,394

Deferred tax assets 13,938 13,499 13,998

Total assets 3,148,856 3,099,239 2,742,764

Equity and liabilities

Equity 377,995 396,005 376,866

Equity attributable to ordinary shareholders 369,493 386,395 368,016

Ordinary share capital 6,479 6,479 6,479

Ordinary share premium 102,780 102,780 102,780

Reserves 260,234 277,136 258,757

Non-controlling interest 8,502 9,610 8,850

Liabilities 2,770,861 2,703,234 2,365,898

Trading liabilities 235,392 270,598 112,023

Derivative liabilities 26,384 29,451 25,364

Current tax liabilities 10,784 20,131 16,441

Deposit and current accounts 1,691,858 1,657,638 1,558,397

Deposits from banks 501,842 455,439 431,862

Deposits from customers 1,190,016 1,202,199 1,126,535

Other borrowings 143,229 144,460 136,434

Debts securities issued 72,027 72,892 47,419

Provisions 9,055 9,919 9,302

Other liabilities 582,132 498,145 460,518

Total equity and liabilities 3,148,856 3,099,239 2,742,764

Statement of changes in equity Group

Ordinary share capital

₦’million

Share premium ₦’million

Merger reserve

₦’million

Statutory credit risk

reserve ₦’million

Fair value through

OCI reserve ₦’million

Share-based payment

reserve ₦’million

AGSMEIS reserve

₦’million

Other regulatory

reserves ₦’million

Retained earnings ₦’million

Ordinary shareholders’

equity ₦’million

Non-controlling

interest ₦’million

Total equity

₦’million

Balance as at 1 January 2022 6,479 102,780 - 5,439 4,210 76 10,240 55,492 183,300 368,016 8,850 376,866

Reclassification of share-based reserve - - - - - (76) - - 76 - - -

Restated balance at 1 January 2022 6,479 102,780 - 5,439 4,210 - 10,240 55,492 183,376 368,016 8,850 376,866

Total comprehensive (loss) / income for the year - - - - (1,907) - - - 29,298 27,391 1,393 28,784

Profit for the period - - - - - - - - 29,298 29,298 1,371 30,669

Other comprehensive (loss) after tax for the period - - - - (1,907) - - - - (1,907) 22 (1,885)

Net change in fair value on debt financial assets at FVOCI - - - - (1,566) - - - - (1,566) 22 (1,544)

Net change in fair value on equity financial assets at FVOCI - - - - (1) - - - - (1) - (1)

Realised fair value adjustments on financial assets at FVOCI (equity) - - - - (126) - - - - (126) - (126)

Realised fair value adjustments on financial assets at FVOCI (debt) - - - - (214) - - - - (214) - (214)

Income tax on other comprehensive income - - - - - - - - - - - -

Statutory credit risk reserve - - - (5,439) - - - - 5,439 - - -

Transfer to AGSMEIS reserves - - - - - - 1,479 - (1,479) - - -

Transfer to statutory reserves - - - - - - - - - - - -

Transactions with shareholders, recorded directly in equity - - - - - - - - (25,914) (25,914) (1,741) (27,655)

Equity-settled share-based payment transactions - - - - - - - - - - - -

Transfer of vested portion of equity settled share based payment to retained earnings - - - - - - - - - - - -

Increase in paid-up capital (bonus issue) - - - - - - - - (25,914) (25,914) (1,741) (27,655)

Balance as at 30 June 2022 6,479 102,780 - - 2,303 - 11,719 55,492 190,721 369,493 8,502 377,995

Balance as at 1 January 2021 5,553 102,780 (19,123) 1,460 8,656 76 7,626 55,492 208,503 371,023 7,578 378,601

Total comprehensive income for the period - - - - (13,879) - - - 21,268 7,389 1,069 8,458

Profit for the period - - - - - - - - 21,268 21,268 1,275 22,543

Other comprehensive income after tax for the period - - - - (13,879) - - - - (13,879) (206) (14,085)

Net change in fair value on debt financial assets at FVOCI - - - - (15,650) - - - - (15,650) (206) (15,856)

Net change in fair value on equity financial assets at FVOCI - - - - 112 - - - - 112 - 112

Realised fair value adjustments on financial assets at FVOCI (debt) - - - - 1,711 - - - - 1,711 - 1,711

Expected credit loss on debt financial assets at FVOCI - - - - (52) - - - - (52) - (52)

Income tax on other comprehensive income - - - - - - - - - - - -

Statutory credit risk reserve - - - 2,763 - - - - (2,763) - - -

Transfer to statutory reserves - - - - - - - - - - - -

Transfer to AGSMIEIS reserves - - - - - - 2,614 (2,614) - - -

Transactions with shareholders, recorded directly in equity - - - - - - - - (39,982) (39,982) (636) (40,618)

Equity-settled share-based payment transactions - - - - - - - - - - - -

Increase in paid-up capital (scrip issue) - - - - - - - - - - - -

Dividends paid to equity holders - - - - - - - - (39,982) (39,982) (636) (40,618)

Balance at 30 June 2021 5,553 102,780 (19,123) 4,223 (5,223) 76 10,240 55,492 184,412 338,430 8,011 346,441

2120



Statement of cash flows - Group H1 2022 ₦’million


Net cash flows from operating activities 184,416 51,416

Cash flows used in operations 159,774 34,762

Profit before tax 39,978 24,707

Adjusted for: (36,650) (27,911)

Net impairment (write-back)/loss on financial assets 5,467 (1,284)

Depreciation of property and equipment 2,852 2,669

Amortisation of intangible asset 382 379

Amortisation of right of use assets 760 685

Dividends included in other revenue (356) (378)

Equity-settled share-based payments (1,885) -

Unobservable valuation difference in derivatives (876) -

Fair value adjustment for derivatives 6,683 22,760

Non-cash flow movements in other borrowings 1,020 (25,182)

Non-cash flow movements in debt securities issued (709) 1,889

Interest expense 800 3,859

Interest income 17,895 11,350

Loss/(profit) on sale of property and equipment (68,248) (44,229)

Opening transition adjustment of right of use assets (435) (429)

(Increase)/decrease in income-earning assets (223,018) 27,132

Increase/(decrease) in deposits and other liabilities 379,464 10,834

Dividends received 320 340

Interest received 58,997 39,602

Interest paid (19,592) (10,552)

Direct taxation paid (15,083) (12,736)

Net cash flows (used in)/ from investing activities (90,603) (56,021)

Capital expenditure on (162) (148)

– property (3,131) (2,631)

– equipment, furniture and vehicles (233) (981)

– right of use assets - (116)

– intangible assets 565 622

Proceeds from sale of property, equipment, furniture and vehicles - -

Purchase of financial investments (502,892) (52,767)

Sale of financial investments 415,250 -

Net cash flows (used in)/ from financing activities 2,988 (57,118)

Proceeds from addition to other borrowings 16,731 14,336

Repayment of other borrowings (9,227) (30,836)

Proceeds from debt securities issued 23,808 -

Unclaimed dividend received - -

Unclaimed dividend paid (669) -

Cash dividends paid (27,655) (40,618)

Net increase in cash and bank balances 96,801 (61,723)

Effect of foreign exchange rate changes on cash and bank balances 649 7,272

Cash and bank balances at beginning of the period 216,232 237,271

Cash and bank balances at end of the period 313,682 182,820

23


22



02Businessunit review

Segmental structure for key business unitSegmental highlightsSegmental income statementCorporate and Investment Banking (CIB)Consumer and High Net Worth Clients (CHNW)Business and Commercial Clients (BCC)

262728293338

25


BusIness unIt RevIew24 25

Segmental highlights

Consumer and High net worth Clients% of group total income

Corporate and Investment Banking% of group total income

Business and Commercial Clients% of group total income

43%

38%

Corporate and Investment Banking H1 2022 H1 2021

Total income ₦48.17 billion ₦26.7 billion

Total income growth (%) Increased 81% decreased 56%

Total income contribution (%) 42.5 33.9

Cost-to-income ratio (%) 51.7 81.8

Credit loss ratio (%) 1.4 (0.4)

Gross loan growth (%) 18.1 11.6

Deposit growth (%) 13.4 29.9

Segmental structure for key client segments

stanbic IBtC Group

Business and Commercial Clients

Broad based client solutions for a wide spectrum of small and

medium sized businesses as well as large commercial enterprises

What we offer:Transactional and card products• Comprehensive suite of

transactional, saving, investment, trade, foreign exchange, payment and liquidity management solutions made accessible through a range of physical and electronic or digital channels

• Merchant transaction acquiring services (card acquiring).

Lending products• Business lending offerings

constitute a comprehensive suite of lending product offerings, structured working capital finance solutions and commercial property finance solutions.

• Overdrafts

• Finance of vehicles and equipment in the business market

• Invoice discounting

• Contract and local purchase order financing

• Import and export finance facility

What we offer:Global markets• Fixed income instruments.

• Money market.

• Equities.

• Foreign Exchange.

• Research.

Investment banking• Equity capital market.

• Debt capital market.

• Financial advisory.

• Real Estate Finance and principal investment management

• Mining, Energy and Infrastructure.

• Diversified Lending and Leverage.

Transactional products and services• Investor services (asset custody).

• Transactional banking.

• Trade finance.

Coverage and distribution• Client facing sales activities

within CIB division covering conglomerate and diversified industries; consumer, financial institutions; oil and gas, power and infrastructure and telecommunications, media and technology sector.

Corporate and Investment Banking Clients

Corporate and investment banking services to governments

parastatals, larger corporates, financial institutions and

international counterparties

What we offer:Banking Retail lending• Mortgage: Residential

accommodation loans

• Finance of vehicles

Retail transactional and card products• Comprehensive suite of

transactional, savings, payment and liquidity management solutions

• Credit cards, debit cards; foreign currency prepaid cards

Non-BankingPension fund administration• Retirement savings accounts

• Gratuity schemes for companies

Asset management

• Mutual funds

• Portfolio management for high-net-worth individuals

Trustee services• Private trust

• Corporate trust

Insurance brokerage

• Life assurance

• Group life assurance

• Travel health insurance

• General insurance

Life Insurance

• Annuity

• Life insurance

Consumer and High Net Worth Clients

Banking, pension fund administration, asset management,

trust and fiduciary, life insurance and insurance brokerage services to retail and high net worth clients

27


BusIness unIt RevIew26


19%Consumer and High Net Worth Clients H1 2022 H1 2021

Total income ₦43.3 billion ₦37 billion

Total income growth (%) Increased 17% increased 84%


Cost-to-income ratio (%) 63.1 53.0


Gross loan growth (%) (3.6) 34.0

Deposit growth (%) 3.8 19.0

Assets under management growth (%) 6.2 2.7

Retirement savings accounts growth (%) 1.7 2.0

Business and Commercial Clients H1 2022 H1 2021

Total income ₦21.82 billion ₦15 billion

Total income growth Increased 45% increased 30%


Cost-to-income ratio (%) (71.6) (92.3)


Gross loan growth (%) 15.4 66.5

Deposit growth (%) (4.34) 14.0

Segmental income statement Corporate and Investment Banking (CIB)

Overview Corporate and Investment Banking (“CIB”) comprises of four business units: Client Coverage (“CC”), Global Markets (“GM”), Investment Banking (“IB”) and Transactional Products and Services (“TPS”).

Our Client Coverage team manages corporate relationships and is the main point of contact with our clients. The team members are skilled at identifying client needs and requirements, and at aligning these with the appropriate product houses for execution.

The GM business provides products and solutions in equities, fixed income, foreign exchange, and money markets. Stanbic IBTC Stockbrokers Limited, which reports to the GM business, provides world-class stockbroking services in Nigeria to local and foreign investors. It is the largest stockbroking house in Nigeria. Our Research team provides insights on the domestic and international markets of our portfolio investment clients, through a team of highly skilled macroeconomic and equity research analysts.

Our IB business provides, through Stanbic IBTC Capital Limited, corporate finance and debt advisory services to corporate and government entities.

Transactional Products and Services offers standardized and tailored transactional products and services including trade finance solutions, working capital and cash management solutions. Our custody team, which reports to the TPS business, provides world-class non-pension custodial services, through Stanbic IBTC Nominees, to both foreign and local investment houses. Financial performance CIB’s profitability grew significantly by over 100% to ₦19.47 billion in H1 2022 (H1 2021: ₦8.96 billion) due to the increase in both net interest income and non-interest revenue during the period. Net interest income increased by 51% to ₦23.94 billion from ₦15.89 billion in prior year, driven by the growth in interest income earned from treasury bills and government bonds coupled with interest earned on loans and advances.

In similar vein, non-interest revenue increased by over 100% to ₦24.24 billion from ₦10.80 billion recorded in H1 2021. The increase can be attributed to the significant growth in trading revenue due to high trading activities and net fee and commission growth of 25% resulting from fees from advisory fees from investment banking space.

Credit impairment charge of the business grew above 100% to ₦2.06 billion as against the ₦486 million write-back in prior year, this can be attributed to increase in loans and advances to customer.

CIB’s total operating expenses increased by 14% driven by the increase in both staff and regulatory costs such as AMCON levy and NDIC premium. CIB’s cost-to-income ratio however improved to 51.7% in H1 2022 (H1 2021: 81.8%) due to significant growth in total income.

Gross loans and advances grew by 18% to ₦689.47 billion in H1 2022 (FY 2021: ₦583.59 billion). The growth was largely driven by over 100% growth in overdraft and 17% growth in term loans to support client expansion requirements while instalment sales and finance lease declined by 7% due to repayments and pay-off’s.

Although the non-performing loans of the business increased to ₦9.09 billion (FY 2021: ₦8.86 billion), the non-performing loans to total loans ratio moderated to 1.3% from 1.5% in FY 2021.

Customer deposits increased by 13% to ₦553.8 billion from ₦488.3 billion in FY 2021 on account of the strong growth in current deposits.

2928


BusIness unIt RevIew


Corporate and Investment Banking

Consumer and High Net Worth Clients

Change %

H1 2022 ₦'million

H1 2021 ₦'million

Change %

H1 2022 ₦'million

H1 2021 ₦'million

Change %

H1 2022 ₦'million

H1 2021 ₦'million

Interest income 54 19,238 12,521 56 38,642 24,766 49 10,368 6,942

Interest expense 57 (3,026) (1,924) 66 (14,705) (8,878) (70) (164) (548)

Net interest income 53 16,212 10,597 51 23,937 15,888 60 10,204 6,394

Non-interest revenue 26 5,611 4,470 >100 24,237 10,798 8 33,109 30,641

Net fee and commission revenue 11 4,836 4,340 28 8,513 6,664 6 32,214 30,252

Trading revenue 43 714 501 >100 15,072 4,592 41 534 380

Income from life insurance activities - - - - - - 62 136 84

Other revenue >(100) 61 (371) >100 652 (458) >(100) 225 (75)

Total income 45 21,823 15,067 81 48,174 26,686 17 43,313 37,035

Net impairment loss/ (write-back) on financial assets >(100) (2,054) 711 >(100) (2,064) 486 >(100) (1,349) 87

Income after credit impairment charges 25 19,769 15,778 70 46,110 27,172 13 41,964 37,122

Operating expenses 12 (15,628) (13,902) 14 (24,894) (21,839) 39 (27,343) (19,624)

Profit before tax >100 4,141 1,876 >100 21,216 5,333 (16) 14,621 17,498

Tax >(100) (381) 984 >100 (1,751) 3,629 6 (7,177) (6,777)

Profit after tax 31 3,760 2,860 >100 19,465 8,962 (31) 7,444 10,721

Gross loans and customer depositsCAGR (H1 2020 - H1 2022): Gross loans: 15% Customer deposits: 23%

net interest income and non-interest revenueCAGR (H1 2018 - H1 2022): Net interest income: (3%) Non-interest based: 0.02%

Change % H1 2022 H1 2021 FY 2021

Net interest income ₦’million 51 23,937 15,888 34,723

Non-interest revenue ₦’million >100 24,237 10,798 25,344

Credit impairment charges ₦’million >(100) (2,064) 486 1,405

Operating expenses ₦’million 14 (24,894) (21,839) (34,824)

Profit before tax ₦’million >100 21,216 5,333 26,648

Profit after tax ₦’million >100 19,465 8,962 29,976

Gross loans and advances ₦’million 18 689,470 462,346 583,589

Deposit liabilities ₦’million 13 553,824 324,505 488,332

Cost to income ratio % 51.7 81.8 58.0



Non-performing loans ratio % 1.3 3.3 1.5

Investor services

Assets under custody ₦’million 4 4,304,781 4,052,950 4,124,023

performance highlights

Corporate and Investment Banking (CIB) continued

0

100

200

300

400

500

600

700

800

H1 2022FY 2021H1 2021FY 2020H1 2020

₦’billion

395

241

414

250

462

325

584

488

689

554

0

10000

20000

30000

40000

50000

Non-interest revenue

Net interest income

H1 2022H1 2021H1 2020H1 2019H1 2018

₦’million

21,28224,218

18,151

25,148

20,346

40,685

15,887

11,734

23,937 24,237

Gross loans

Customer deposits


Net interest income

Q2 2022 Q1 2022 H1 2022

Net interest income ₦’million 13,345 10,592 23,937

Non-interest revenue ₦’million 10,395 13,842 24,237

Credit impairment charges ₦’million (2,182) 118 (2,064)

Operating expenses ₦’million (11,083) (13,811) (24,894)

Profit before tax ₦’million 10,475 10,741 21,216

Gross loans and advances ₦’million 689,470 628,971 689,470

Deposit liabilities ₦’million 553,824 557,541 553,824

Cost-to-income % 46.7 56.5 51.7


Other key business statistics

Investor services

Assets under custody ₦’million 4,304,781 4,227,637 4,304,781

Quarterly analysis of performance

Factors impacting the results Favourable• Growth in loan book and

the attendant impact on interest income.

• Increases in fees from new loan bookings, trade activities as well as financial advisory services – a reflection of improved business activities.

• Continued focus on trade activities with resultant growth in trade assets and revenue.

• Improved trading activities with resultant growth in trading revenue.

• Growth in Asset under Custody (AuC).

Adverse• FX illiquidity.

• Increase in impairment charge.

3130



Breakdown of loans and advances to customers

YtD Change %




Gross loans and advances 18 689,470 462,346 583,589

Instalment sale and finance leases (7) 3,234 1,308 3,471

Overdrafts >100 21,183 11,557 10,054

Term loans 17 665,053 449,481 570,064

Credit impairment 9 (11,037) (16,361) (10,139)

12-month Expected Credit Loss (ECL) 19 (4,296) (3,011) (3,624)

Lifetime ECL not credit-impaired (35) (52) (860) (80)

Lifetime ECL credit-impaired 4 (6,689) (12,490) (6,435)

Net loans and advances 18 678,433 445,985 573,450

Breakdown of non-performing loans

Change %




Overdrafts - - - -Term loans 3 9,087 15,101 8,861

Instalmental sale and finance leases - - - -Total non-performing loans 3 9,087 15,101 8,861

Breakdown of deposits from customers

Change %




Current deposits 42 258,285 135,630 181,493

Call deposits 69 152,568 60,221 90,468

Term deposits (34) 142,971 128,654 216,371

Total customer deposits 13 553,824 324,505 488,332

loans and advances

Corporate and Investment Banking (CIB)Continued

• 42% growth in current account deposits.

Comments • Deposit mix improved as low-cost deposit to total deposit improved to 46.6% from 37% in FY 2021.

Consumer and High Net Worth Clients (CHNW)

Overview The Consumer and High Net Worth Clients (CHNW) business segment serves the Group’s retail and high net worth clients by providing banking, pension fund administration, asset management, trust and fiduciary, life insurance and insurance brokerage services.

The CHNW Segment is divided into two distinct customer focus areas: The Bank and Non-Bank clients. Also, within the CHNW there is Coverage (distribution channels) through which we serve our customers.

CHnw Bank segment The bank aspect of CHNW Segment caters to all Stanbic IBTC Group’s retail clients and is the largest client segment across the group, providing banking services to about 2.4 million retail customers.

The functional areas that make up CHNW Bank include:

• Main Clients Segment for all the Group’s retail customers providing lifestyle solutions for our clients

• Affluent Clients is a segment for high income individuals providing credit and other beyond banking services

• High Net Worth Client segment caters to high-net-worth clients across both Banking and Non-bank entities

non-Bank CHnw segment In line with our future ready transformation, the legacy Wealth businesses morphed into the non-bank CHNW Segment and comprises five licensed legal entities. These entities are unique in the solutions they offer but taken together offer personalized wealth solutions that help clients through their journey of wealth creation, preservation, protection, and transfer to the next generation to preserve legacy.

The five legal entities include:

• Stanbic IBTC Pension Managers Limited (SIPML) for the administration and management of pension assets

• Stanbic IBTC Asset Management Limited (SIAML) for the management of non-pension assets. Our Wealth and Investment team; experts who serve as advisors to high-net-worth individuals are situated within this subsidiary

• Stanbic IBTC Trustees Limited (SITL) for trusteeship, estate management and Institutional Trust functions

• Stanbic IBTC Insurance Brokers Limited (SIIBL) for insurance risks brokerage and advisory functions

• Stanbic IBTC Insurance Limited (SIIL) that offers Life insurance solutions only

Financial performance CHNW’s total income increased by 17% to ₦43.31 billion (H1 2021: ₦37.04 billion), due to growth in both net interest income and non-interest revenue.

Net interest income increased by 60% to ₦10.20 billion resulting from the growth in interest income by 49% to ₦10.37 billion (2021: ₦6.94 billion) as a result of the higher average yield on investments coupled with growth in loan book. Interest expense improved by 70% to ₦164 million from ₦548 million in 2021.

Non-interest revenue (NIR), earned mainly from fees and commission, increased by 8% to ₦33.11 billion in 2022 (2021: ₦30.64 billion) resulting from growth in income from life insurance activities, trading revenues and increase in AUM driven by higher net contribution and investment

income, increased transactional volumes as well as growth in fees from new loan bookings. Assets under Management (AuM) increased by 14% year-on-year to close the year at ₦5.4 trillion. The pension asset management business largely contributed to the growth. We continued to witness increasing adoption of digital channels. The number of transactions performed by customers on our digital channels grew to 5,976 million in H1 2022.

Provision for credit losses was a charge of ₦1.35 billion as against the ₦87million write back for H1 2021. This is as a result of increase in non-performing term loans and instalmental sales and finance leases, resulting in a credit loss ratio of 1.8% versus (0.13%) in H1 2021.

CHNW’s operating expenses increased by over 39% to ₦27.34 billion (H1 2021: ₦19.62 billion) following increase in pension administration expenses, marketing and premises expenses, as well as additional investment in Information Technology. Accordingly, cost-to-income ratio increased year- on-year to 63.1% (H1 2021: 53%).

All things considered, CHNW reported a profit of ₦7.44 billion in H1 2022, a reduction from the ₦10.72 billion profit in H1 2021 due to minimal growth in net fees and commission and decline in gross loans and advances.

CHNW’s gross loans declined by 4% YoY to close at ₦75.71 billion (FY 2021: ₦78.52 billion) mainly due to a decrease in the disbursements of installment sales and finance leases, as well as overdrafts which declined by 1% and 79% respectively compared to the prior period. CHNW’s asset quality deteriorated as non-performing loans in CHNW increased to ₦4.5 billion from ₦3.35 billion as at FY 2021 resulting in a higher non-performing loans ratio of 6.0% in H1 2022 (FY 2021: 4.3%). Customer deposits of the business

3332



25%

75%

19%

81%

Contribution to total income by sub-segment

H1 2021

Bank CHNW

Non-Bank CHNW

Bank CHNW

Non-Bank CHNW

H1 2022

Consumer and High Net Worth Clients (CHNW) continuedincreased by 4% to ₦316.32 billion from ₦304,784 billion as at FY 2021 comprising of a 2.6% and 4.8% growth in current and savings deposits respectively, expensive term deposits

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

H1 2022FY 2021H1 2021FY 2020H1 2020

₦’billion %

768.5

3,436.0

1,76

1,79

1,832

1,861

1,894

870.6 788.2 829.7 856.4

3,760.33,965.9

4,253.34,543.2

1650

1700

1750

1800

1850

1900

1950

Asset management

Pension management

Retirement saving accounts

Change % H1 2022 H1 2021 FY 2021


Non-interest revenue ₦’million 8 33,109 30,641 61,447

Credit impairment charges ₦’million >(100) (1,349) 87 (472)


Profit before tax ₦’million (16) 14,621 17,498 33,356

Profit after tax ₦’million 31 7,444 10,721 20,066

Gross loans and advances ₦’million (4) 75,711 74,103 78,519

Deposit liabilities ₦’million 4 316,319 313,279 304,784

Assets under management ₦’million 6 5,399,576 4,754,154 5,083,028

Retirement savings accounts Number 2 1,893,609 1,832,371 1,861,400

Cost to income ratio % - 63.1 53.0 56.7

Credit loss ratio % - 1.8 (0.13) 0.69

Other key business statistics

Business infrastructure

Branch network Number (5) 140 166 147

ATMs Number 5 803 810 764

performance highlightsalso grew by 3.8%. CHNW’s deposit mix, defined as the ratio of lower-priced deposit to total deposits, increased to 95% from 94% in FY 2021.

CAGR (H1 2020 – H1 2022):Asset management 3%Pension management 7%Retirement saving accounts 2%

3534




Change %




Gross loans and advances (4) 75,711 74,103 78,519

Mortgage loans 5 4,577 4,190 4,356

Instalment sale and finance leases (1) 1,541 1,479 1,553

Overdrafts (79) 1,101 8,360 5,351

Term loans 2 68,492 60,074 67,260

Credit impairment 38 (4,611) 2,541 (3,332)

12-month Expected Credit Loss (ECL) (1) (685) 713 (694)

Lifetime ECL not credit-impaired 30 (521) 251 (400)

Lifetime ECL credit-impaired 52 (3,405) 1,576 (2,238)

Net loans and advances (5) 71,099 76,643 75,187

loans and advances

Consumer and High Net Worth Clients (CHNW)Continued

Factors impacting the results Favourable• Improvement in business activities

leading to increased transactions volume thereby resulting in fees and commission growth.

Adverse• Increase in cost driven

activities such as maintenance and marketing expenses due to inflationary pressures.

• Continued growth in expensive deposit and decline in low-cost deposits increases cost of funds.

• Highly competitive environment continues to impact risk asset pricing.

Q2 2022 Q1 2022 H1 2022



Credit impairment charges ₦’million (979) (370) (1,349)


Profit before tax ₦’million 8,867 5,754 14,621



Assets under management ₦’million 5,399,576 5,252,017 5,399,576

Retirement savings accounts Number 1,893,609 1,872,033 1,893,609

Credit to income ratio % 56.3 70.5 63.1


Quarterly analysis of performance Breakdown of non-performing loans

Change %




Overdrafts (32) 167 171 245

Term loans 45 4,234 1,901 2,928

Instalment sale and finance leases 34 54 18 40

Mortgage loans (63) 53 59 143

Total non-performing loans 34 4,507 2,149 3,356

Transactional lending products• Pay-off’s on overdrafts and

mortgage loans.

• Non-performing loans reduced to ₦167 million from ₦245 million (FY 2021) due to CHNW’s loan recovery efforts.

Instalment sale and finance leases• Growth in products loan

book reflecting accelerated demand due to the improved economic conditions.

• Non-performing loans increased to ₦54 million.

Mortgage lending• Growth in product loan book

attributable to the current macro-economic environment.

• Loan book increased by 5% to close at ₦4.57 billion due to additional uptake of the mortgage loans.

• Consequently, the mortgage loan book’s non-performing loans improved to ₦53 million from ₦143 million in FY 2021.

Term loans• Decrease in pay downs on

Term loans.

• Non- performing loans grew by 45% compared to FY 2021.

Deposit breakdown

Change %




Current deposits 2.6 143,109 142,584 139,427

Savings deposits 4.8 157,557 152,120 150,288

Call deposits 5.7 802 2,622 759

Term deposits 3.8 14,850 15,954 14,310

Total customer deposits 4 316,319 313,279 304,784

Deposit liabilities

• Marginal Increase in current and savings accounts following the continued drive to raise cheap funds.

• Lower priced deposits accounted for 95% of total deposits which has led to increase in cost of funds.

• Marginal increase in call deposits.

3736



Business and Commercial Clients (BCC)

Overview The Business and Commercial Clients (BCC) was recently carved out of the Personal and Business Banking segment. BCC is a broad-based client solutions unit for small and medium sized businesses as well as large commercial businesses.

BCC focuses primarily on Business Banking clients and the segment is divided into Enterprise Banking and Commercial Banking for proper relationship management and transactional services. Aside from the relationship management team, BCC also has a team of specialist across the following areas: Trade finance, Oil and Gas, Agribusiness, Public Sector, Ecosystems and Enablement, Africa China Banking.

The Relationship Management team and the sector specialist provides bespoke business solutions that support client’s commerce needs through a range of physical and electronic / digital channels.

BCC is client focused and value driven such that products and solutions for clients in this segment are developed to be beneficial to both SME’s and Commercial businesses.

Financial performance Business and Commercial Clients reported a total income of ₦21.82 billion in H1 2022, an increase of 45% from prior year. The growth in the total income reported was supported by the increase in non-interest revenue and net interest income. Net interest income increased to by 53% to ₦16.21 billion. (H1 2021: ₦10.60 billion) due to growth in customer loans and higher yields. Interest expense however increased to ₦3.03 billion from ₦1.92 billion in H1 2021.

Non-interest revenue increased by 26% to ₦5.61 billion due to growth in fees and commission income following an improvement in transaction volume during the first half of the year. Accordingly, BCC reported a profit of ₦3.76 billion in H1 2022, an improvement from the ₦2.86 billion profit in H1 2021 due to increase in total income and reduced income tax. BCC gross loans grew by 15% year- to-date to close at ₦327.79 billion (FY 2021: ₦284,151 billion) mainly from additional disbursements of finance leases and term loans which grew by 27% and 13% respectively compared to prior period. Mortgages and Overdraft declined due to pay off’s and monthly repayments.

BCC’s asset quality deteriorated as non-performing loans in BCC increased by 63% to ₦13.22 billion from ₦8.12 billion as at FY 2021 resulting in a higher non-performing loans ratio of 4.0% in H1 2022 (FY 2021: 2.9%). Customer deposits of the business declined by 4% to ₦318.95 billion from ₦333.42 billion as at FY 2021 following a decline in current and savings deposits by 5% and 64% accordingly. Expensive term deposits also decreased 4% in line with our sustained strategy to drive down cost of funds. Accordingly, BCC’s deposit mix, defined as the ratio of lower-priced deposit to total deposits, decreased to 80.5% from 81.7% in FY 2021.

Change % H1 2022 H1 2021 FY 2021


Non-interest revenue ₦’million 26 5,611 4,470 8,982

Credit impairment charges ₦’million >(100) (2,054) 711 572


Profit before tax ₦’million >100 4,141 1,876 5,999

Profit after tax ₦’million 31 3,760 2,860 6,924

Gross loans and advances ₦’million 15 327,793 254,166 284,151

Deposit liabilities ₦’million (4) 318,946 301,786 333,419

Cost-to-income % 71.6 92.3 83.5




performance highlights

3938



Quarterly analysis of performance

Q2 2022

Q1 2022

H1 2022



Credit impairment charges ₦’million (1,720) (334) (2,054)


(Loss)/profit before tax ₦’million 1,037 3,104 4,141





Business and Commercial Clients (BCC)Continued

Factors impacting the results Favourable• Growth in loan book and

the attendant impact in interest income.

• Increase in fees from new loan bookings as well as financial advisory services, reflective of the improved business activities.

Adverse• Strong competition for good

quality credits with continued pressure on yields.

Breakdown of non-performing loans

Change %




Overdrafts 5 4,613 5,062 4,383

Term loans >100 8,388 3,039 3,505

Instalmental sale and finance leases (5) 222 121 233

Total 63 13,223 8,221 8,121

Deposit liabilities

Breakdown of deposits from customers

Change %




Current deposits (5) 256,217 258,206 271,043

Savings deposits (64) 456 402 1,255

Call deposits 16 20,640 10,107 17,786

Term deposits (4) 41,633 33,071 43,335

Total deposits (4) 318,946 301,786 333,419

Comments • Decline in current and savings account deposits.

• Deposit mix therefore contracted as low-cost deposit to total deposit moved to 80.5% from 81.7% in FY 2021.

loans and advances

Breakdown of customer loans and advances

Change %




Gross loans and advances 15 327,793 254,166 284,151

Mortgage loans (30) 300 684 425

Instalment sale and finance leases 27 43,641 27,272 34,238

Overdrafts/Card debtors 16 49,919 30,930 42,879

Term loans 13 233,932 195,280 206,609

Credit impairment 23 (14,480) 11,163 (11,745)

12-month ECL 19 (4,423) 3,328 (3,707)

Lifetime ECL not credit-impaired (31) (553) 756 (803)

Lifetime ECL credit-impaired 31 (9,504) 7,079 (7,234)

Net loans and advances 15 313,312 265,329 272,407

4140



03Income statement analysis

Overview of Group incomeNet interest income and margin analysisNon-interest revenueCredit impairment chargesOperating expensesTaxation

444749525356

43


InCOMe stAteMent AnAlysIs42 43

Overview of Group income

Drivers of group income

Gross revenue CAGR (H1 2018 – H1 2022): 4%

0

20000

40000

60000

80000

100000

120000

140000

160000

H1 2022H1 2021H1 2020H1 2019H1 2018

₦’million

114,207 117,374126,570

92,680

133,704

Interest based revenue and non-interest-based revenue CAGR (H1 2018 – H1 2022): Interest based: 3% Non-interest-based : 5%

0

10000

20000

30000

40000

50000

60000

70000

80000

H1 2022H1 2021H1 2020H1 2019H1 2018

₦’million

59,924

54,283

60,78456,590

55,130

71,440

44,229

48,451

68,24865,456


Non-interest-based revenue

Gross revenue

total income and profitability

0

20000

40000

60000

80000

100000

120000

H1 2022H1 2021H1 2020H1 2019H1 2018

₦’million %

93,997

43,084

94,162

36,245

107,345

45,204

78,788

22,543

113,310

30,669

0

5

10

15

20

25

30

35

40

45

45.8%

38.5%

42%

28.6%27.1%

Income growth vs. cost growth

-40

-30

-20

-10

0

10

20

30

40

50

H1 2022H1 2021H1 2020H1 2019H1 2018

%

16

28

03

14

(3)

(27)

14

44

23

Total income

Profit after tax

Profit after tax / total income

total income contribution by business unit

CHNW

CIB

BCC38%

19%

43%

Total income growth

Total cost growth

Total incomeH1 2022

CHNW total income growth

CIBtotal income growth

BCC total income growth

Total incomeH1 2021

78,788

21,488

6,278

6,756

37,035

113,310

4544


InCOMe stAteMent AnAlysIs

Overview of Group incomeContinued

Profit after taxH1 2022

CHNW profit after tax growth

CIBprofit after tax growth

BCCprofit after tax growth

Profit after taxH1 2021

30,66922,543

90010,503 (3,277)

Contribution to profit after tax

Income statement summary

Change %



Net interest income 53 50,353 32,879

Non-interest income 37 62,957 45,909

Net impairment write-back/(loss) on financial assets >(100) (5,467) 1,284

Operating expenses 23 (67,865) (55,365)

Profit before tax 62 39,978 24,707

Profit after tax 36 30,669 22,543

Net interest income and margin analysis

net interest income and net interest marginCAGR (H1 2018 – H1 2022): (6%)

0

10000

20000

30000

40000

50000

60000

H1 2022H1 2021H1 2020H1 2019H1 2018

₦’million

40,169 39,310 37,549 32,879 50,3530

1

2

3

4

5

6

7

8

%

2.8%3.2%

6.8%

5.9%

4.9%

5%

2.6%3.1%

2.7%

3.5%

Composition of interest income

0

10

20

30

40

50

60

70

80

90

100

H1 2022H1 2021H1 2020H1 2019H1 2018

%

51%

46%

3%

52%

45%

3%

59%

39%

2%

77%

22%

1%

76%

24%

1%

Net interest income

Net interest margin after impairment charges

Net interest margin before impairment charges

Loans and advances

Investment securities

Placements

Breakdown of net interest income Change %



Interest income on investment securities 68 16,202 9,640

Interest income on advances to banks 2 385 378

Interest revenue on loans and advances to customers 51 51,661 34,211

Overdrafts 27 3,774 2,977

Term loans 52 45,020 29,600

Home loans 1 359 355

Vehicle and asset finance 84 2,348 1,279

Interest income (A) 54 68,248 44,229

Interest expense (B) 58 17,895 11,350

Savings accounts (10) 512 567

Current accounts 45 989 682

Call deposits >100 748 70

Term deposits >100 7,361 1,958

Inter-bank deposits (4) 2,472 2,585

Borrowed funds 6 5,810 5,485

Lease liabilities - 3 3

Net interest income (A-B) 53 50,353 32,879

4746



Net interest income and margin analysiscontinued

CHNW

BCC

CIB

32%

48%

20%

CHNW

BCC

CIB

32%

48%

20%

net interest income by business unit

Factors impacting net interest income

H1 2021

H1 2022

Favourable• Growth in net interest income

largely by supported the increase in loans to customers.

• Increase in MPR from 11.5% to 14%.

Adverse• Growth in Interest expense.

• Competitive pressure on loan yields constrained growth in interest income from loans.

Net interest income by business unitChange

%H1 2022

₦'millionH1 2021

₦’million

BCC 53 16,212 10,597

Corporate and Investment Banking 51 23,937 15,888

CHNW 60 10,204 6,394

Net interest income 53 50,353 32,879

Non-interest revenue (NIR)

non-interest revenue CAGR (H1 2018 – H1 2022): 4%

0

10

20

30

40

50

60

70

80

H1 2022H1 2021H1 2020H1 2019H1 2018

₦’million

53.83 54.85 69.80 45.91 62.96

0

10

20

30

40

50

60

70

80

90

100

%

58%57%

58%65%

56%

Composition of non-interest revenue

-20

0

20

40

60

80

100

H1 2022H1 2021H1 2020H1 2019H1 2018

%

68%

30%

2%

66%

32%

2%

50%

49%

1%

90%

12%

1%

72%

26%

-2%


% of total income

Net fees and commissions income

Trading revenue

Other revenue

4948



Non-interest revenue (NIR)continuedBreakdown of non-interest revenue Change

%H1 2022

₦’millionH1 2021

₦’million

Net fee and commission revenue 10 45,563 41,256

Account transaction fees (8) 2,367 2,582

Card based commission (26) 976 1,319

Brokerage and financial advisory fees 39 5,805 4,163

Asset management fees 4 28,282 27,176

Custody transaction fees (6) 1,037 1,102

Electronic banking 51 2,443 1,615

Foreign currency service fees 18 4,003 3,384

Documentation and administration fees 49 2,524 1,696

Others (10) 761 845

Fee and commission expense 0.3 (2,635) (2,626)

Income from life insurance activities 62 136 84

Insurance premium received >100 1,166 215

Gross premium written >100 7,698 804

Unearned premium (10) (315) (351)

Change in insurance contract liabilities >100 (6,217) (238)

Insurance premium revenue ceded to reinsurers >100 403 61

Reinsurance expense >100 205 43

Commission paid to brokers for reinsurance >100 348 83

Commission earned from reinsurance >100 (91) (14)

Unexpired risk premium on reinsurance 16 (59) (51)

Insurance benefits and claims paid >100 627 70

Unexpired risk premium on reinsurance >100 645 112

Commission earned from reinsurance (57) (18) (42)

Trading revenue >100 16,320 5,473

Commodities - - -

Equities - - (3)

Fixed income and currencies >100 16,320 5,476

Other revenue >(100) 938 (904)

Dividend income (6) 356 378

Gains on disposal of property and equipment 1 435 429

Gain/loss on disposal of financial investment >100 147 (1,711)

Total non-interest revenue 37 62,957 45,909

Non-interest income by business unit Change%

H1 2022 ₦'million

H1 2021₦’million

CIB >100 24,237 10,798

BCC 26 5,611 4,470

CHNW 8 33,109 30,641

Non-interest revenue 37 62,957 45,909

Factors impacting non-interest revenueFavourable• Growth in Assets under

Management (AuM) leading to increased AuM fees.

• Increase in transactions consummated via the electronic banking channels led to a growth in transaction fees earned via the channels. This speaks to our drive to get clients on-boarded on all electronic/digital channels.

• Growth in trading activities resulting in more than 100% growth in trading income

• Growth in documentation and administrative fees earned from new loan bookings.

Adverse

• Reduced card transactions and account transactions outside the digital channels led to a decline in account transaction fees and card-based transaction fee.

• Muted foreign portfolio inflows constrained growth in assets under custody and therefore caused the contraction in custody transaction fees

5150



-8000

-6000

-4000

-2000

0

2000

4000

6000

8000

H1 2022H1 2021H1 2020H1 2019H1 2018

₦’million

(3.0)

(2.0)

(1.0)

0

1

2

3

%

(5,625)

(778)

(2.7)

(0.3)

2.2

(0.1)

(787)

6,328

5,081

1.1

Impairment charges on financial assets vs. credit loss ratio

Credit impairment charges

• Net impairment charge was due to the impact of expected credit loss (ECL) charges on new loans booked in the first half of the year.

Impairment charge / (reversal) on loans and advances

Credit loss ratio

Net impairment charge / (write-back) by client segmentChange

%2022

₦'million2021

₦’million

Corporate and Investment Banking >(100) 2,064 (486)

Business and Commercial Clients >(100) 2,054 (711)

Consumer and High Net Worth clients >(100) 1,349 (87)

Credit impairment charges >(100) 5,467 (1,284)

Net impairment charge/ (reversal)H1 2022


₦'million

12 month expected credit loss 1,053 424

Lifetime expected credit loss-not credit impaired 169 358

Lifetime expected credit loss-credit impaired 4,231 1,452

Recoveries (372) (3,021)

Net expected credit losses raised and released for loan and advances 5,081 (787)

Net expected credit losses raised and released for financial investments (50) (153)

Net expected credit losses raised and released on off balance sheet exposures 325 (343)

Net expected credit losses raised and released for Loan and advances to Banks 6 (1)

Net expected credit losses raised and released on other assets 105 -

Net impairment charge / (reversal) on financial instruments 5,467 (1,284)

Factors impacting credit impairment charges

Operating expenses

Operating expenses and cost-to-income ratio

0

10000

20000

30000

40000

50000

60000

70000

80000

H1 2022H1 2021H1 2020H1 2019H1 2018

₦’million

0

10

20

30

40

50

60

70

80

90

100

%

70.3%51.9% 53.2%

45.2%

59.9%

48,775 50,069 48,535

55,365

67,865

Composition of operating costs

H1 2022H1 2021H1 2020H1 2019H1 2018

%

0

10

20

30

40

50

60

70

80

90

100

44%

5%

52%

40%

6%

54%

41%

7%

52%

36%

6%

57%

36%

5%

58%

Operating expenses

Cost-to-income ratio

Staff costs

Depreciation

Other operating costs

5352



Breakdown of operating expenses

Change %H1 2022


₦’million

Staff costs 22 24,680 20,200

Other operating expenses: 23 43,185 35,165

Information technology 59 5,726 3,608

Communication expenses >100 1,055 365

Premises and maintenance 37 2,059 1,506

Depreciation expense 8 3,612 3,354

Amortisation of intangible assets 1 382 380

Deposit insurance premium 14 2,757 2,427

AMCON expenses 12 14,602 13,017

Other insurance premium 39 1,452 1,044

Auditors remuneration (7) 206 221

Professional fees >100 1,313 591

Administration and membership fees (2) 1,085 1,103

Training expenses >100 380 134

Security expenses (2) 906 926

Travel and entertainment >100 498 135

Stationery and printing 70 725 426

Marketing and advertising >100 2,056 1,195

Commission paid >100 (14) 19

Pension administration expense 51 381 253

Penalties and fines (81) 53 274

Donations (96) 49 1,280

Operational losses/(gain) (84) 74 459

Directors fees 10 435 394

Impairment /(Recovery) of other financial assets 53 435 284

Bank Charges 39 387 279

Indirect tax (VAT) 38 1,194 868

Others >100 1,377 623

Total operating expenses 23 67,865 55,365

Factors impacting non-interest revenue

Staff cost and headcount• Annual salary review resulting

in increased staff costs.

• Increase in long term incentive provisions due to year-on-year share price increase.

Other operating expenses• Increase in AMCON levy due to

increase in balance sheet size.

• Increase in NDIC premium arising from the increase in the value of total qualifying deposits.

• Increased information technology, marketing, premises and maintenance expenses,communication expenses and tax following accelerated activities during the period.

Operating cost by business unit

H1 2021H1 2022

40%

37%

35%

40%

25%23%

BCC

CIB

CHNW

BCC

CIB

CHNW

Operating expenses by business unitChange

%H1 2022

₦'millionH1 2021

₦’million

Corporate and Investment Banking 14 24,894 21,839

Business and Commercial Clients 12 15,628 13,902

Consumer and High Net Worth Clients 39 27,343 19,624

Operating expenses 23 67,865 55,365

Operating expensescontinued

5554



Taxation

₦’million %

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

H1 2022H1 2021H1 2020H1 2019H1 2018

7,646 8,405 7,202 2,164 9,309

0

5

10

15

20

25

15.1%

18.8%

13.7%

8.8%

23.3%

taxation charge and effective tax rate

Taxation

Effective tax rate

Breakdown of taxationChange

%H1 202

₦'millionH1 2021

₦’million

Current tax >100 9,249 1,651

Deferred tax >(100) 286 (5,633)

Taxation per statement of profit or loss >(100) 9,535 (3,982)

57


56



04

Balance sheet analysis

Overview of Group consolidated assetsLoans and advancesLoans and advances performanceAsset qualityDeposits and current accountsFunding and liquidity

606265687072

59


BAlAnCe sHeet AnAlysIs58 59

Overview of Group consolidated assets

Asset composition ₦’million

Intangibleassets, propertyand equipment

Other assetsLoans and advancesto customers

Financialinvestments

Pledged assetsTrading and derivative assets

Cash and loans to bank

Total assets0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

3,148,856

810,519

219,978 135,891

726,104

1,062,846

144,20449,314

Asset mix

0

10

20

30

40

50

60

70

80

90

100

H1 2022FY 2021H1 2021FY 2020H1 2020

%

37%

10%

8%

19%

8%

26%

9%

25%

25%

8%

22%

7%

27%

31%

6%

1% 1% 1%

24%

8%

23%

34%

5%

2%

26%

5%

23%16%

7%

5% 4% 6%

34%

5%1%

Breakdown of total assets

0

500

1000

1500

2000

2500

3000

3500

FY 2021H1 2022

₦’billion

810.5

170.4185.4

726.1

1,062.8

146.946.7

669.2

223.598.7

636.6

921.0

146.946.7

Cash and loans to banks

Pledged and derivative assets

Trading assets

Financial investments

Loans and advances to customers

Other assets

Intangible assets, property and equipment

Cash and loans to banks

Pledged and derivative assets

Trading assets

Financial investments

Loans and advances to customers

Other assets

Intangible assets, property and equipment

Return on assets

0

500

1000

1500

2000

2500

3000

3500

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.04.5%

2.0%

4.2%

1.8%2.1%

H1 2020 FY 2020 H1 2021 FY 2021 H1 2022

3,022.3

2,486.3

2,427.42,742.8 3,148.9

The Group’s total assets increased by 15% to ₦3.15 trillion in H1 2022 due to increase in cash and cash equivalent, trading assets, financial investments as well as loans and advances.

Comments The Group’s return on average assets reduced slightly to 2% (annualized) from 2.1% achieved in FY 2021, as profitability is increasing at a lower rate compared to assets.

Total Asset

Return on assets

6160


BAlAnCe sHeet AnAlysIs

Loans and advances

Gross loans and advancesCAGR (H1 2020 – H1 2022): 16%

0

200

400

600

800

1000

1200

H1 2022FY 2021H1 2021FY 2020H1 2020

₦’billion

603.1655.3

790.6946.3

1,093.0

Composition of gross loans and advances

6.9% Overdrafts

88.2% Term loans

4.4% Instalment sale and finance leases

0.4% Mortgage

Gross loans and advances


Change %




Gross loans and advances 16 1,092,974 790,615 946,259

Mortgage lending 2 4,877 4,874 4,781

Vehicle and asset finance 35 48,416 30,059 35,791

Overdrafts >100 75,205 50,847 1,270

Term loans 7 964,475 704,835 904,417

Credit impairments 19 (30,128) (31,020) (25,215)

12-month ECL 17 (9,404) (7,103) (8,025)

Lifetime ECL not credit-impaired (12) (1,126) (1,869) (1,283)

Lifetime ECL credit-impaired 23 (19,598) (22,048) (15,907)

Net loans and advances 14 1,069,166 767,817 937,140

88.2%

Breakdown of gross loans and advances by business unit

Consumer and High Net worth

₦’million


₦'million

Corporate and Investment

₦’millionTotal

₦’million

Overdrafts 4,103 49,919 21,183 75,205

Term loans 65,489 233,932 665,053 964,475

Vehicle and asset finance 1,541 43,641 3,234 48,416

Mortgage lending 4,577 300 - 4,877

Total loans and advances 75,711 327,793 689,470 1,092,974

Loans and advances by sectorChange

%H1 2022

₦'millionFY 2021

₦’million

Agriculture 25 46,466 37,157

Construction and real estate 35 79,260 58,744

Consumer loans 9 84,941 78,022

Electricity, gas and water supply >100 10,856 9,302

Financial intermediaries and insurance (22) 19,190 24,728

General commerce 23 104,569 85,140

Government (27) 54,442 74,788

Manufacturing 5 320,626 304,862

Oil and gas services 56 71,750 46,068

Downstream oil and gas 46 135,668 93,207

Upstream oil and gas 12 84,766 75,365

Transportation and communication 37 80,440 58,875

Gross loans and advances 16 1,092,974 946,259

6362



• Increased lending to the various sectors helped mitigate the effect of the decline in Manufacturing, Gas and Water supply, financial intermediaries’ and Government exposures.

Comments • Decline in some sectors due to pay downs.

H1 2022

FY 2021

Loans and advances continued

12%

29%10%

4% Agriculture

7% Construction and real estate

8% Consumer loans

1% Electricity, Gas and Water Supply

2% Financial intermediaries and insurance

10% General commerce

5% Government

29% Manufacturing

7% Oil and gas services

12% Downstream oil and gas

8% Upstream oil and gas

7% Transportation and communication

4% Agriculture


8% Consumer loans

1% Electricity, Gas and Water Supply

3% Financial intermediaries and insurance

9% General commerce

8% Government

32% Manufacturing



8% Upstream oil and gas


32%

9%10%

Loans and advances performance

non-performing loans

0

5

10

15

20

25

30

H1 2022FY 2021H1 2021FY 2020H1 2020

₦’billion

0

1

2

3

4

5

6

7

8

9

10

%

4.04%

4.89%

3.22%

%2.62%

2.15

29.5 26.5 25.5 20.3 28.7

npl and coverage ratio

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

H1 2022FY 2021H1 2021FY 2020H1 20200

10

20

30

40

50

60

70

80

90

100

%%

71.5%

82.9%

86.6%

78.2%

68.3%

4.89% 4.04% 2.1% 2.62%3.22%

Gross non-performing loans

NPL/total loans

NPL/total loan

Gross specific impairment coverage

Breakdown of non-performing loans by productChange

%H1 2022

₦'millionH1 2021

₦’millionFY 2021

₦’million

Overdrafts 32 6,112 5,233 4,628

Term loans 45 22,214 20,040 15,294

Instalment sales and finance leases 13 310 138 273

Home loans (63) 53 59 143

Total non-performing loans 41 28,688 25,471 20,338

6564



Breakdown of non-performing loans by business unit

Consumer and High Net worth

₦’million


₦’million

Corporate and Investment Banking Clients

₦’millionTotal

₦’million

Overdrafts 167 5,945 - 6,112

Term loans 4,234 8,892 9,087 22,214

Instalment sales and finance leases 54 256 - 310

Mortgage lending 53 - - 53

Total non-performing loans 4,507 15,093 9,087 28,688

Non-performing loans by sectorChange

%H1 2022

₦'millionFY 2021₦’million

Agriculture 9 4,480 4,127

Construction and real estate 3 9,088 8,861

Consumer loans 44 4,824 3,356

General commerce >100 2,908 1,409

Manufacturing (33) 86 128

Oil and gas services >100 6,807 1,036

Downstream oil and gas >100 457 202

Transportation and communication (97) 38 1,219

Total non-performing loans 41 28,688 20,338

Loans and advances performancecontinued

H1 2022

non-performing loans by sector

16% Agriculture


16% Consumer loans

10% General commerce

0% Manufacturing




20% Agriculture


16% Consumer loans

7% General commerce

1% Manufacturing




• Increase in non-performing loans occurred majorly due to loan classification in the consumer loans, oil and gas services, downstream oil and gas and general commerce sector.

Comments

• Gross specific impairment coverage ratio closed at 68.3% (FY 2021: 78.2%).

• Foreign currency loans accounted for 32% of NPLs (FY 2021: 22%).

32%

16%24%

16%

20%

44%

FY 2021

16%

6766



Asset quality

1Other assets presented in the table above comprise financial assets only. The following items have been excluded: prepayment, indirect / withholding tax receivable, and accrued income.

Total Loans and

advances to customers ₦’million

Balance sheet impairments for

performing loans ₦’million

Stage 1 and stage 2 Stage 3

Neither past due nor specifically impaired

Not specifically impaired

Specifically impaired loans

Performing Non-performing loans Non-performing loans

Notes

Normal monitoring ₦’million

Close monitoring ₦’million

Early Arrears ₦’million Stage 3 Stage 3 Purchased/Originated as credit impaired

Total ₦’million

Securities and expected recoveries on

specifically impaired

loans ₦’million

Net after securities

and expected recoveries on

specifically impaired

loans ₦’million

Balance sheet impairments

for non-performing specifically

impaired loans ₦'million

Gross specific impairment

coverage %

Total non-performing

loans ₦'million

Non-performing loans

%

June 2021 Stage 1 Stage 2 Stage 1 Stage 2 Stage 1 Stage 2Sub-standard

₦’millionDoubtful ₦’million

Loss ₦’million

Sub-standard ₦’million

Doubtful ₦’million

Loss ₦’million

Consumer and High net worth Clients (CHnw) 75,711 1,095 64,741 966 - 31 6,272 1,974 963 547 1,846 - - - 4,507 1,102 3,405 3,405 76 4,507 6.0

Mortgage loans 4,577 34 4,004 32 - 168 212 109 - 17 35 - - - 53 4 49 49 93 53 1.15

Instalment sale and finance leases

1,541 9 1,430 19 - - 19 20 11 18 24 - - - 54 30 24 24 45 54 3.50

Card debtors 1,101 57 627 61 - 1 135 114 38 44 81 - - - 163 41 122 122 75 163 14.79

Other loans and advances 68,492 1,431 58,680 1,147 - 103 2,765 1,559 917 1,376 1,945 - - - 4,238 1,028 3,210 3,210 76 4,238 6.19

Business and Commercial Clients (BCC) 327,793 4,501 303,308 505 - 2,855 12,547 2,145 3,177 1,222 3,722 - - - 15,093 5,589 9,504 9,504 63 15,093 4.6

Mortgage loans 300 7 300 - - - - - - - - - - - - - - - - - -

Instalment sale and finance leases 43,641 815 42,020 73 - 1,106 30 157 146 31 78 - - - 256 132 124 124 48 256 0.59

Card debtors 1 1 1 - - - - - - - - - - - - - - - - - -

Other loans and advances 283,850 3,811 260,987 863 - 1,708 4,621 833 7,326 3,443 4,068 - - - 14,837 5,457 9,380 9,380 63 14,837 5.23

wholesale Clients (wC) 689,470 4,362 676,485 1,293 - - 2,605 - - - 9,087 - - - 9,087 2,398 6,689 6,689 74 9,087 1.32

Corporate loans 689,470 4,362 676,485 1,293 - - 2,605 - - - 9,087 - - - 9,087 2,398 6,689 6,689 74 9,087 1.32

Gross loans and advances 1,092,974 9,958 1,044,534 2,765 - 2,886 21,424 4,118 4,140 1,769 14,655 - - - 28,688 9,090 19,598 19,598 68 28,688 2.62

Less: Total expected credit loss for loans and advances at amortised cost

12-month ECL (9,404)

Lifetime ECL not credit-impaired (1,126)

Lifetime ECL credit-impaired (19,598)

Purchased/originated credit impaired -

net loans and advances 12 1,062,846

Add the following other banking activities exposures:

Cash and cash equivalents 7 804,199

Derivatives 10.6 34,529

Financial investments (excluding equity)

11 723,142

Loans and advances to banks 12 6,320

Trading assets 9.1 185,449

Pledged assets 8 135,891

Other financial assets1 119,145

total on-balance sheet exposure 3,071,521

Off-balance sheet exposure:

Letters of credit 185,744 113 185,744 - - - - - - - - - - - - - - - - - -

Guarantees 161,339 987 161,339 - - - - - - - - - - - - - - - - - -

Loan commitments 119,732 251 119,732 - - - - - - - - - - - - - - - - - -

total exposure to credit risk 3,538,335

Expected credit loss for off balance sheet exposures

12-month ECL (1,108)

Lifetime ECL not credit impaired -

Lifetime ECL credit impaired -

total exposure to credit risk on loans and advances at amortised cost 3,537,227

6968



Deposits and current accounts

Customer deposits (H1 2020 – H1 2022): 12%

700

800

H1 2022FY 2021H1 2021FY 2020H1 2020

₦’billion

0

10

20

30

40

50

60

70

80

90

%

66%

769.3 819.9 958.4 1,126.5 1,190.1

73.3%

82.8%80.4%

68.6%

Deposit mix

0

10

20

30

40

50

60

70

80

90

100

H1 2022FY 2021H1 2021FY 2020H1 2020

%

64%

6%

17%

14%

64%

5%

18%

12%

57%

8%

19%

53%

10%

24%

55%

15%

%

%

16%13%

13%

17%

Customer deposits

CASA mix

Current accounts

Call deposits

Savings accounts

Term deposits

Breakdown of total deposits

YtD Change %




Deposits from banks 16 501,842 392,556 431,862

Other deposits from banks 16 501,842 392,556 431,862

Deposits from customers 6 1,190,016 940,364 1,126,535

Current accounts 11 657,611 536,420 591,963

Call deposits 60 174,010 72,950 109,013

Savings accounts 5 158,940 153,315 151,543

Term deposits (27) 199,455 177,679 274,016

Total deposits 9 1,691,858 1,332,920 1,558,397

• Increase in customer deposits by 6% driven by growth across the deposit lines except term deposit.

Comments • Growth in savings account and current account has led to an improved CASA ratio of 68.6% from 66.0% in FY 2021.

Deposit breakdown by business unit

Change %




Consumer and High Net worth Clients 4 317,246 313,279 304,784


Savings deposits 5 158,484 152,120 150,288

Call deposits 6 802 2,622 759

Term deposits 4 14,851 15,954 14,310

Business and Commercial Clients (4) 318,946 301,786 333,419

Current deposits (5) 256,217 258,206 271,043

Savings deposits (64) 456 402 1,255

Call deposits 16 20,640 10,107 17,786

Term deposits (4) 41,633 33,071 43,335

Corporate and Investment Banking 13 553,824 324,505 488,332


Call deposits 69 152,568 60,221 90,468

Term deposits (34) 142,971 128,654 216,371

Total customer deposits 6 1,190,016 939,570 1,126,535

7170



Funding and liquidity

Balance sheet funding

0

2743

LiabilitiesAssets

₦’billion

810.52

726.10

170.42185.45

1,209.70

46.66

261.78

1,190.02

501.84

215.26

591.19

378.00

Equity

Other liabilities

Other borrowings

Deposits from banks

Deposits from customers

Trading and derivative liabilities

Funding mix

FY 2021H1 2022

38%

41%

12% Equity

38% Deposits from customers

16% Deposits from banks

7% Trading liabilities

20% Other liabilities

7% Borrowings

20%

16%

12%

14% Equity

41% Deposits from customers

16% Deposits from banks

4% Trading liabilities

19% Other liabilities

7% Borrowings

41%16%

19%

14%

Equity

Other liabilities

Other borrowings

Deposits from banks

Deposits from customers

Trading and derivative liabilities

liquidity market overview Framework and governanceThe nature of banking and trading activities results in a continuous exposure to liquidity risk. Liquidity problems can have an adverse impact on a Group’s earnings and capital and, in extreme circumstances, may even lead to the collapse of a Group which is otherwise solvent.

The group's liquidity risk management framework is designed to measure and manage the liquidity position at various levels of consolidation such that payment obligations can be met at all times, under both normal and considerably stressed conditions. Under the delegated authority of the board of directors, the Asset and Liability Committee (ALCO) sets liquidity risk policies in accordance with regulatory requirements, international best practice and SBG stated risk appetite.

Tolerance limits, appetite thresholds and monitoring items are prudently set and reflect the Group's conservative appetite for liquidity risk. ALCO is charged with ensuring ongoing compliance with liquidity risk standards and policies.

The Group must, at all times, comply with the more stringent of Standard Bank imposed tolerance limits or regulatory limits.

Liquidity and funding managementA sound and robust liquidity process is required to measure, monitor and manage liquidity exposures. The Group has incorporated the following liquidity principles as part of a cohesive liquidity management process:

• Structural liquidity mismatch management

• Long-term funding ratio

• Maintaining minimum levels of liquid and marketable assets

• Depositor restrictions

• Local currency loan to deposit ratio

• Foreign currency loan to deposit ratio

• Interbank reliance limit

• Intra-day liquidity management

• Collateral management

• Daily cash flow management

• Liquidity stress and scenario testing

• Funding plans

• Liquidity contingency planning

The cumulative impact of these principles is monitored, at least monthly by ALCO through a process which is underpinned by a system of extensive controls. The latter includes the application of purpose-built technology, documented processes and procedures, independent oversight and regular independent reviews and evaluations of the effectiveness of the system.

H1 2022 FY 2021

Group ₦’million

Bank ₦’million

Group ₦’million

Bank ₦’million

Specified liquid assets

Cash 30,460 30,458 14,115 14,115

Balance with CBN (net DR/CR balance, and excluding CRR) 1,637 1,637 22,701 22,701

Net balance held with banks within Nigeria 18,596 - 10,055 -

Treasury Bills 284,148 274,028 246,694 229,055

CBN Registered Certificates 517,614 517,614 497,110 497,110

Net Interbank Placement with other Banks 5,000 5,000 9,998 9,998

Federal Government of Nigeria bonds 87,732 71,383 10,268 499

Stabilisation Securities - - - -

Total assets (A) 945,187 900,120 810,942 773,478

Current liabilities

Adjusted deposit liabilities 779,126 799,222 769,726 783,833

Net Inter bank Placements held for other Banks - - - -

Total liabilities (B) 779,126 799,222 769,726 783,833

Liquidity ratio A/B*100 121.31% 112.62% 105.35% 98.68%

Liquidity ratio (Bank) H1 2022 FY 2021

Minimum 103.72% 91.80%

Average 112.21% 107.01%

Maximum 130.81% 118.23%

liquidity ratio computation

7372



Funding and liquiditycontinuedThe group ensures that the banking entity (Stanbic IBTC Bank PLC) is within the regulatory liquidity ratio of 30% on a daily basis. The minimum, average and maximum liquidity ratios presented in the table above are derived from daily liquidity ratio computations. Structural liquidity mismatch management The mismatch principle measures the Group's liquidity by assessing the mismatch between its inflow and outflow of funds within different time bands on a maturity ladder. The structural liquidity mismatch is based on behaviourally adjusted cash flows which factors a probability of maturity into the various time bands. As expected, cash flows vary significantly from the contractual position, behavioural profiling is applied to assets, liabilities and off-balance

sheet items with an indeterminable maturity or draw down period.

A net mismatch figure is obtained by subtracting liabilities and netting off-balance sheet positions from assets in each time band. The Group’s liquidity position is assessed by means of the net cumulative mismatch position, while its liquidity mismatch performance is an aggregation of the net liquidity position in each successive time band expressed as a percentage of total funding related to deposits.

Maintaining minimum levels of liquid and marketable assetsMinimum levels of prudential liquid assets are held in accordance with all prudential requirements as specified by the regulatory authorities. The group needs to hold additional unencumbered

marketable assets, in excess of any minimum prudential liquid asset requirement, to cater for volatile depositor withdrawals, draw downs under committed facilities, collateral calls, etc.

The following criteria apply to readily marketable securities:

• Prices must be quoted by a range of counter parties.

• The asset class must be regularly traded.

• The asset may be sold or repurchased in a liquid market, for payment in cash; and settlement must be according to a prescribed, rather than a negotiated, timetable.

Depositor concentrationTo ensure that the Group does not place undue reliance on any single entity as a funding source, restrictions are imposed on the short dated (0 – 3 months term) deposits accepted from any entity.

These include:

• The sum of 0 – 3 month deposits and standby facilities provided by any single deposit counter party must not, at any time, exceed 10%

of total funding related liabilities to the public.

• The aggregate of 0 – 3 month deposits and standby facilities from the 10 largest single deposit counter parties must not, at any time, exceed 20% of total funding related liabilities to the public.

Concentration risk limits are used to ensure that funding diversification is maintained across products, sectors, and counter parties.

Primary sources of funding are in the form of deposits across a spectrum of retail and wholesale clients. As mitigants, the Group maintains marketable securities in excess of regulatory requirements in order to create a buffer for occasional breaches of concentration limits.

Bank unencumbered surplus liquidityChange

%H1 2022

₦'millionFY 2021

₦’million

Marketable assets 22 803,751 659,664

Short-term foreign currency placements - 7,204 -

Total unencumbered marketable assets 23 810,955 659,664

Other readily accessible liquidity 80 373,361 207,220

Total unencumbered surplus liquidity 37 1,184,316 866,884

Depositor concentrationH1 2022

%FY 2021

%

Single depositor 2 2

Top 10 depositors 11 11

Loan to deposit limit A limit is put in place, restricting the local currency loan to deposit ratio to a maximum specified level, which is reviewed periodically. Similarly, in order to restrict the extent of foreign currency lending from the foreign currency deposit base, a foreign currency loan to deposit limit, which is also referred to as own resource lending, is observed. As mitigants, the Group maintains high levels of unencumbered marketable and liquid assets in excess of regulatory benchmark. Intra-day liquidity managementThe Group manages its exposures in respect of payment and settlement systems. Counter parties may view the failure to settle payments when expected as a sign of financial weakness and in turn delay payments to the Group. This can also disrupt the functioning of payment and settlement systems. At a minimum, the following operational elements are included in the Group’s intra-day liquidity management:

• Capacity to measure expected daily gross liquidity inflows and outflows, including anticipated timing where possible

• Capacity to monitor its intra-day liquidity positions, including available credit and collateral

• Sufficient intra-day funding to meet its objectives

• Ability to manage and mobilise collateral as required

• Robust capacity to manage the timing of its intra day outflows

• Readiness to deal with unexpected disruptions to its intra-day liquidity flows

Daily cash flow management The Group generates a daily report to monitor significant cash flows. Maturities and withdrawals are forecast at least 3-months in advance and management is alerted to large outflows. The report, which is made available to the funding team, ALM and market risk also summarises material daily new deposit as well as the interbank and top depositor reliance (by value and product). The daily cash flow management report forms an integral part of the ongoing liquidity management process and is a crucial tool to pro actively anticipate and plan for large cash outflows. Interbank reliance Interbank funding traditionally is seen as the most volatile and least stable source of funding, easily influenced by market sentiment and prone to flight under stress situations. Consequently, to ensure prudent liquidity management is enforced, the group restricts the local currency interbank funding as a proportion of the local currency funding base to a maximum of 15% of the total currency funding base.

Liquidity stress testing and scenario testing Anticipated on- and off-balance sheet cash flows are subjected to a variety of the Group specific and systemic stress scenarios in order to evaluate the impact of unlikely but plausible events on liquidity positions. Scenarios are based on both historical events, such as past emerging markets crises, past local financial markets crisis and hypothetical events, such as an entity specific crisis. The results obtained from stress testing provide meaningful input when defining target liquidity risk positions.

The Group maintains high levels of unencumbered marketable and liquid assets in excess of regulatory benchmark.

7574



05Capital Management

7879

Return on ordinary equityRisk–weighted assets

77


CApItAl MAnAGeMent7676 7777

Return on ordinary equity

Average shareholders’ fund and return on equity

₦’million

0

50

100

150

200

250

300

350

400

H1 2022FY 2021H1 2021FY 2020H1 2020

313.2 333.7

354.7369.5 368.8

0

5

10

15

20

25

30

35

40

%

28.3%

15.7%

24.3%

12.1%14.7%

Shareholders' fund (average)

Return on average equity

Risk - weighted assets

total assets and risk weighted assets

0

500

1000

1500

2000

2500

3000

3500

H1 2022FY 2021H1 2021FY 2020H1 2020

₦’billion %

42.8%

54.4%

60.1% 59.3%

57.6%

40.000000

43.428571

46.857143

50.285714

53.714286

57.142857

60.571429

64.000000

1,294

3,022

1,3511,460

1,6261,815

2,486 2,4272,743

3,149

Capital adequacy ratio

0

5

10

15

20

25

30

H1 2022FY 2021H1 2021FY 2020H1 2020

%

23.0% 23.1%22.0%

19.8%18.6%

26.1%24.7%

23.1%21.1%

19.7%

10% 10% 10% 10%11%

0

5

10

15

20

25

30

Tier 1 capital adequacy

Total capital adequacy

Statutory minimum

Comments

The group held adequate capital to support its business in H1 2022 with capital adequacy ratios well above the statutory minimum.

The group’s total capital adequacy ratio closed the period at 19.7% (Bank: 15.0%), while the tier 1 capital adequacy ratio stood at 18.6% (Bank: 14.0%).

Capital adequacy computation

Group H1 2022

₦’million

Bank H1 2022

₦’million

Group FY 2021

₦’million

Bank FY 2021

₦’million

Tier I capital 338,202 221,609 321,917 207,305

Tier II capital 19,513 17,072 21,522 19,633

Total qualifying capital 357,715 238,681 343,439 226,938

Credit risk 1,439,399 1,332,684 1,224,036 1,122,528

Operational risk 348,878 237,015 348,878 237,015

Market risk 26,946 17,067 52,924 46,398

Risk weighted assets 1,815,223 1,586,766 1,625,838 1,405,941

Capital adequacy

Tier I 18.6% 14.0% 19.8% 14.7%

Tier II 1.1% 1.1% 1.3% 1.4%

Total 19.7% 15.0% 21.1% 16.1%

H1 2020 FY 2020 H1 2021 FY 2021 H1 2022

Total assets 3,022 2,486 2,427 2,743 3,149

Risk weighted assets 1,294 1,351 1,460 1,626 1,815

% Of risk weighted assets to total assets 42.8% 54.4% 60.1% 59.3% 57.6%

7978


CApItAl MAnAGeMent

06Market and shareholder information

8283

Market capitalisation and price-to-book ratioEquity and range analysis

81


MARket AnD sHAReHOlDeR InFORMAtIOn

Market capitalisation and price-to-book ratio

Market capitalisation

0

100

200

300

400

500

600

H1 2022FY 2021H1 2021FY 2020H1 2020

₦’billion

317.8

489.2 521.5466.5

434.7

net asset value per share and price-to-book

0

400

800

1200

1600

2000

2400

2800

3200

3600

H1 2022FY 2021H1 2021FY 2020H1 2020

Kobo

3,1423,341

3,0472,840 2,852

1.3 1.3 1.31.21

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

Times

Market capitalisation Net asset value per share

Price-to-book

Comments The major stock market indices lost points year-to-date. The Nigerian Exchange Limited (NGX) All Share Index (ASI) appreciated by 21% while Banking Index dropped by 2%, respectively.

Similarly, Stanbic IBTC’s share price depreciated by 7% to close at ₦33.55 as at 30 June 2022 in line with the bearish market. The Group’s market capitalization closed at ₦434.7 billion in H1 2022 and ranked 11th most capitalized stock amongst the 155 listed equities on the Nigerian Exchange Limited in H1 2022.

Change % H1 2022 FY 2021

Number of shares at the end of the period thousands - 12,956,997 12,956,997

Net asset value ₦’million 0.4 369,493 368,016

Net asset value per share kobo 0.4 2,852 2,840

Share price at the end of the year kobo (7) 3,355 3,600

Market capitalisation at end of the year ₦’billion (7) 435 466

Price-to-book at end of the year times (7) 1.2 1.3

Period end Dividend type Total dividend declared* ₦

Dividend per share Kobo

2021 Interim: 3,836,172,701 100

Final: 7,576,439,936 200

2020 Interim: 1,318,592,879 40

Final: 11,866,653,152 360

2019 Interim: 2,197,589,117 100

Final: 4,355,729,540 200

2018 Interim: 2,767,915,163 100

Final: 3,827,994,326 150

2017 Interim: 1,494,304,738 60

Final: 1,712,614,735 50

*Amount is less of withholding tax

Equity and range analysis

the shareholding pattern of the Group as at 30 June 2022

significant shareholding of 5% and above

Share range No of shareholders % Shareholders No of holding % Holding

1-1,000 39,127 41.68% 23,070,083 0.18%

1001-5,000 35,616 37.94% 82,279,515 0.64%

5,001-10,000 9,092 9.68% 63,252,361 0.49%

10,001-50,000 7,703 8.21% 159,894,436 1.23%

50,001-100,000 1,131 1.20% 79,020,541 0.61%

100,001-500,000 901 0.96% 178,839,020 1.38%

500,001-1,000,000 131 0.14% 89,196,672 0.69%

1,000,001-5,000,000 104 0.11% 218,570,852 1.69%

5,000,001-10,000,000 15 0.02% 103,693,853 0.80%

10,000,001-50,000,000 38 0.04% 787,105,190 6.07%

50,000,001-100,000,000 13 0.01% 946,413,230 7.30%

100,000,001 - 12,956,997,163 8 0.01% 10,225,661,410 78.92%

Grand Total 93,879 100.0% 12,956,997,163 100.0%

Shareholder

No. of shares held 30 June 2022

Percentage shareholding

No. of shares held 31 December 2021

Percentage shareholding

Stanbic Africa Holdings Limited 8,747,863,865 67.51% 8,747,863,865 67.51%

8382


MARket AnD sHAReHOlDeR InFORMAtIOn

07Other information

8687

Financial and other definitionsContact details

85


OtHeR InFORMAtIOn

Financial and other definitions

Term Definition

Return on average equity (ROE) % Profit after tax as a percentage of annual average ordinary shareholders’ funds

Basic earnings per ordinary share (EPS)Earnings attributable to ordinary shareholders divided by the weighted average number of ordinary shares in issue

CAGR (%) Compound annual growth rate

Cost-to-income ratio (%) Operating expenses as a percentage of total income

Credit loss ratio (%)Total impairment charges on loans and advances per the income statement as a percentage of gross loans and advances

Dividend cover (times) Earnings per share divided by dividend per share

Dividend per share (kobo)Total dividends to ordinary shareholders including dividends and scrip distributions declared per share in respect of the period

Gross specific impairment coverage Balance sheet impairments for non-performing specifically impaired loans as a percentage of specifically impaired loans

Net asset value (₦’million) Equity attributable to ordinary shareholders

Net asset value per share (kobo)Net asset value divided by the number of ordinary shares in issue at the end of the period

Net interest margin (%) Net interest income as a percentage of average of total assets less derivative assets

Non-interest revenue to total income (%) Non-interest revenue as a percentage of total income

Non-performing loans ratio (%) Total non-performing loans as a percentage of gross loans and advances

Price-to-book ratio (times) Market capitalisation divided by net asset value

Profit attributable to ordinary shareholdersProfit for the period attributable to ordinary shareholders, calculated as profit for the period less minority interests

Profit for the period (₦’million)Income statement profit attributable to ordinary shareholders and minorities shareholders for the period

Provisions for non-performing loans Provisions for specific identified credit losses (₦’million)

Provision of performing loans (₦’million) Provisions for incurred credit losses inherent in the performing loan book.

Shares in issue (number)Number of ordinary shares in issue as listed on the floor of the Nigerian Exchange Limited (NGX)

Total capital adequacy ratio (%) Total regulatory capital as a percentage of total risk-weighted assets

Turnover in shares traded (%)Number of shares traded during the period as a percentage of the weighted average number of shares

Weighted average number of sharesThe weighted average number of ordinary shares in issue during the period as recorded on the NGX

Contact details

Remilekun Ishola Head, Investor RelationsT: +234 1 4227844E: [email protected]

Kunle AdedejiChief Financial OfficerT: +234 1 4228767 E: [email protected]

Chidi OkezieCompany Secretary T: +234 1 4228695 E: [email protected]

Registered addressIBTC Place, PO Box 71707,

Walter Carrington crescent,

Victoria Island, Lagos, Nigeria

E: [email protected]

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Email: [email protected]

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OtHeR InFORMAtIOn

Stanbic IBTC Holdings PLCRC: 1018051

Analysis of Financial Results - thevault.exchange

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