By Michael Eboh
Stanbic IBTC Bank Plc has said that it plans to leverage on the strength of its capital and healthy liquidity position to grow its business in the year 2010, despite the challenges posed by the local economy and global economic landscape.

According to a statement by the bank, it expects to weather the turbulent financial environment through heavy investment in capacity building, human capital development, risk management, understanding and developing solutions to meet the needs and aspirations of its customers across the length and breadth of the country.

Mr. Chris Newson, Chief Executive Officer, Stanbic IBTC Bank said, “Stanbic IBTC maintained its signature capital strength and healthy liquidity position throughout the downturn, leaving us well_positioned for further growth.

“The difficult operating environment is expected to persist in 2010, but the Board is confident that with our skilled and passionate people and highly disciplined approach to risk management we can continue to grow.

As a diversified bank with strong parentage, we have continued to invest heavily in capacity building, particularly our footprint and our people.”

Newson further stated that the bank will continue to invest in its people in order to deepen its talent pool as this holds the key to understanding customer needs and providing solutions to meet those needs.

“Stanbic IBTC’s core business units are all committed to the principle that the customer needs to be at the centre of everything we do. We believe that our long term success will be entirely reliant on our ability to understand those customer needs and the environment they operate in, while working seamlessly as a team across business units to solve them,” he added.

The bank had declared a total dividend of N5.63 billion for its shareholders in the 2009 financial year,  translating to 30 kobo dividend per share.
The dividend was approved by its shareholders, at the bank’s 21st annual general meeting held in Abuja, recently.
In his address to shareholders, Chairman of the bank, Mr. Atedo Peterside, described 2009 as the year that witnessed the most turbulent developments in the Nigerian banking sector since the ongoing reforms commenced in mid_2004.

He, however, stated that Stanbic IBTC emerged from the turbulence relatively unscathed. “Our audited results for 2009 and the recent reaffirmation of our Fitch AAA rating significantly corroborate this statement.”

He reiterated Stanbic IBTC’s commitment to continuously entrench the highest standards of good corporate governance practices and to ensure that all its stakeholders are well served.

In the period under review, Stanbic IBTC posted gross earnings of N59.8 billion as against N61.2 billion in the corresponding period of 2008, while operating income increased by three per cent to N43.8 billion, compared to N42.5 billion in 2008. Profit before tax stood at N10.3 billion, while profit after tax was N8.1 billion. However, total net loans and advances went up by 17 per cent to N119.9 billion as against N102.6 billion in 2008.

The bank’s total deposits and current accounts, which represent 50% of the total liabilities and equity, appreciated by 78 per cent  to N169 billion as customers expressed confidence in Stanbic IBTC in a competitive market.  The group’s loan to deposit ratio of 78.7 per cent is within the regulatory guideline of 80 per cent and the 51.4 per cent liquidity ratio is significantly above the statutory minimum of 25 per cent.