Increase in assets under management and execution of good deals, including an undisclosed landmark transaction by the investment banking business of Stanbic IBTC has seen the Wealth Management arm of the bank make N9.7 billion in non-interest income in the first six months 2014. This is beside an additional N1.01 billion in net interest income.
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The earnings by the bank’s wealth management business unit were revealed by Demola Sogunle, Chief Executive, Stanbic IBTC Pension Managers (SIPM) in a presentation to investors. He also revealed that SIPM now has N1.3 trillion of assets and retirement savings accounts (RSAs) under management.
He disclosed that SIPM has seen both an increase in the number of customers and size of contributions, noting that the growth in assets under management was muted by a slow growth in the stock market.
However, the units’ contribution was one of the highpoint of Stanbic IBTC’s impressive half year performance which defied a general trend of negative or marginal growth from other banks in Nigeria amidst a tougher operating environment.
The bank’s half year results presented to investors show a 13% increase in gross earnings to N61.5 billion, 28% growth in net interest income to N28 billion and 13% growth in non-interest income to N27 billion. The bank also announced a 49% growth in profit before tax to N19.6 billion and 56% growth in profit after tax to N15.9 billion.
It announced a N1.10 interim dividend and plans to raise N30 billion in debt capital.
Shares in Stanbic IBTC have gained 37.2% this year.
