STANBIC IBTC : QUARTER 3 - FINANCIAL STATEMENT FOR 2023

STANBIC IBTC HOLDINGS PLC

UNAUDITED CONSOLIDATED AND SEPARATE

INTERIM FINANCIAL STATEMENTS

30 September 2023

I.B.T.C. Place Walter Carrington Crescent / P.O. Box 71707 Victoria Island Lagos Nigeria

Telephone: [phone]. [phone] Facsimile: 234-1- 2806998 www.stanbicibtc.com

Stanbic IBTC Holdings PLC RC 1018051

Directors: Basil Omiyi CON (Chairman) Demola Sogunle (Chief Executive) Kunle Adedeji (Executive) F. Ajogwu (SAN) S. David-Borha N. Edozien I. L. Esiri B.J. Kruger* B. Manu S. Suleiman N. Uwaje

*South African

STANBIC IBTC HOLDINGS PLC

UNAUDITED CONSOLIDATED AND SEPARATE INTERIM FINANCIAL STATEMENTS

30 September 2023

Table of contents

Consolidated and separate interim statements of financial position

Consolidated and separate interim statements of profit or loss

Consolidated and separate interim statements of other comprehensive income Statement of changes in equity

Consolidated and separate statement of cash flows

Notes to the interim condensed consolidated financial statements

Risk management

Page

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STANBIC IBTC HOLDINGS PLC

Consolidated and separate interim statements of financial position as at 30 September 2023

		Group	Company
		30 Sept. 2023	31 Dec. 2022	30 Sept. 2023	31 Dec. 2022
	Note	N'million	N'million	N'million	N'million
Assets
Cash and Cash equivalent	6	1,249,167	664,450	15,115	50,294
Pledged assets	7	226,647	127,990	-	-
Trading assets	8	218,356	190,431	-	-
Derivative assets	9	424,678	42,134	-	-
Financial investments	10	521,495	582,019	8,679	27,710
Loans and advances	11	1,770,795	1,208,190	-	-
Loans and advances to banks	11	7,849	3,404	-	-
Loans and advances to customers	11	1,762,946	1,204,786	-	-
Other assets	12	172,924	132,390	18,895	13,199
Equity investment in group companies		-	-	95,351	94,751
Property and equipment	14	74,194	61,548	3,276	2,040
Right of Use Assets	16	4,348	3,609	142	4
Intangible asset	15	2,662	3,223	-	-
Deferred tax assets	13	8,791	13,042	-	-
Total assets		4,674,057	3,029,026	141,458	187,998
Equity and liabilities
Equity		471,055	407,670	112,540	122,965
Equity attributable to ordinary shareholders		462,473	399,662	112,540	122,965
Ordinary share capital	17	6,479	6,479	6,479	6,479
Ordinary share premium	17	102,780	102,780	102,780	102,780
.		353,214	290,403	3,281	13,706
Non-controlling interest		8,582	8,008	-	-
Liabilities		4,203,002	2,621,356	28,918	65,033
Trading liabilities	8	208,643	220,971	-	-
Derivative liabilities	9	313,497	26,099	-	-
Current tax liabilities		16,816	17,564	68	46
Deposits and current accounts	18	2,494,159	1,736,426	-	-
Deposits from banks	18	722,263	491,080	-	-
Deposits from customers	18	1,771,896	1,245,346	-	-
Other borrowings	19	285,617	187,957	-	-
Debt securities issued	20	123,442	71,878	-	-
Provisions	22	11,718	8,758	-	-
Other liabilities	21	748,284	351,703	28,850	64,987
Deferred tax liabilities		826	-	-	-
Total equity and liabilities		4,674,057	3,029,026	141,458	187,998
Demola Sogunle				Kunle Adedeji
Chief Executive				Chief Financial Officer
FRC/2013/CIBN/00000001034				FRC/2013/ICAN/00000001137
27 October 2023				27 October 2023

Basil Omiyi

Chairman FRC/2016/IODN/00000014093 27 October 2023

The accompanying notes form an integral part of these financial statements.

Page 1

STANBIC IBTC HOLDINGS PLC

Consolidated and separate interim statements of profit or loss for the period ended 30 September 2023

			Group			Company
		3 months	9 months	3 months	9 months	3 months	9 months	3 months	9 months
		30-Sep-23	30-Sep-23	30-Sep-22	30-Sep-22	30-Sep-2330-Sep-23	30-Sep-22	30-Sep-22
	Note	N'million	N'million	N'million	N'million	N'million	N'million	N'million	N'million
Net interest income
	47,819	120,503	29,307	79,661	134	171	35	104
Interest income	27.1	74,332	184,591	38,809	107,057	134	171	35	104
Interest expense	27.2	(26,513)	(64,088)	(9,502)	(27,396)	-	-	-	-
Non-interest revenue		43,343	141,961	31,439	94,395	6,451	41,248	22,380	56,263
Net fee and commission revenue	27.3	28,372	79,526	22,892	68,454	432	1,542	355	1,200
Fee and commission revenue	27.3	30,803	84,598	24,273	72,470	432	1,542	355	1,200
Fee and commission expense	27.3	(2,431)	(5,072)	(1,381)	(4,016)	-	-	-	-
Income from life insurance activities	27.4	(718)	(1,231)	721	857	-	-	-	-
Net insurance service result before reinsurance contracts held	27.4	509	1,516	-	-	-	-	-	-
Net expense from reinsurance contracts held	27.4	(76)	(449)	-	-	-	-	-	-
Net insurance finance expenses	27.4	(8)	(1,451)	-	-	-	-	-	-
Fair value adjustments	27.4	(1,143)	(847)	-	-	-	-	-	-
Insurance premium received	27.4	-	-	1,626	2,792	-	-	-	-
Insurance premium revenue ceded to reinsurers	27.4	-	-	(378)	(781)	-	-	-	-
Insurance benefits and claims paid	27.4	-	-	(527)	(1,154)	-	-	-	-
Trading revenue	27.5	15,018	59,741	8,566	24,886	-	-	-	-
Other revenue	27.6	671	3,925	(740)	198	6,019	39,706	22,025	55,063
Total income		91,162	262,464	60,746	174,056	6,585	41,419	22,415	56,367
Net impairment write-back/(loss) on financial assets	27.7	(3,977)	(9,956)	(1,993)	(7,460)	-	-	-	-
Income after credit impairment charges		87,185	252,508	58,753	166,596	6,585	41,419	22,415	56,367
Operating expenses		(40,712)	(123,050)	(29,785)	(97,650)	(1,593)	(6,459)	(1,801)	(4,229)
Staff costs		(16,473)	(45,986)	(12,590)	(37,270)	223	(2,174)	(667)	(1,720)
Other operating expenses	27.8	(24,239)	(77,064)	(17,195)	(60,380)	(1,816)	(4,285)	(1,134)	(2,509)
Profit before tax		46,473	129,458	28,968	68,946	4,992	34,960	20,614	52,138
Income tax	27.9	(5,161)	(20,209)	(4,452)	(13,761)	(11)	(36)	(2)	(7)
Profit for the period		41,312	109,249	24,516	55,185	4,981	34,924	20,612	52,131
Profit attributable to:
Non-controlling interests		726	2,332	779	2,054	-	-	-	-
Equity holders of the parent		40,586	106,917	23,737	53,131	4,981	34,924	20,612	52,131
Profit for the period		41,312	109,249	24,516	55,185	4,981	34,924	20,612	52,131
Earnings per share
Basic /diluted earnings per ordinary share (kobo)	28	313	825	183	410	38	270	159	402
The accompanying notes form an integral part of these financial statements.

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STANBIC IBTC HOLDINGS PLC

Consolidated and separate interim statements of other comprehensive income for the period ended 30 September 2023

		Group			Company
	3 months	9 months	3 months	9 months	3 months	9 months	3 months	9 months
	30-Sep-2330-Sep-23	30-Sep-2230-Sep-22	30-Sep-23	30-Sep-23	30-Sep-2230-Sep-22
Note	N'million	N'million	N'million	N'million	N'million	N'million	N'million	N'million
Profit for the period	41,312	109,249	24,516	55,185	4,981	34,924	20,612	52,131
Other comprehensive income
Items that will never be reclassified to profit or loss
Movement in fair value reserve (equity instruments):	(31)	9	632	631	-	-	-	-
Net change in fair value	(31)	9	632	631	-	-	-	-
Related income tax	-	-	-	-	-	-	-	-
Items that are or may be reclassified subsequently to profit or
loss:
Movement in debt instruments measured at fair value	(1,984)	1,185	(1,752)	(3,636)	-	-	-	-
through other comprehensive income (OCI)
Net change in fair value of financial assets at FVOCI	(2,615)	566	(2,120)	(3,664)	-	-	-	-
Realised fair value adjustments on financial assets at FVOCI	315	315	(1)	(127)	-	-	-
reclassified to income statement	-
Expected credit loss on debt financial assets at FVOCI	316	304	369	155	-	-	-	-
Income tax on other comprehensive income	-	-	-	-	-	-	-	-
Other comprehensive income for the period, net of tax	(2,015)	1,194	(1,120)	(3,005)	-	-	-	-
Total comprehensive income for the period	39,297	110,443	23,396	52,180	4,981	34,924	20,612	52,131
Total comprehensive income attributable to:
Non-controlling interests	654	2,284	936	2,005	-	-	-	-
Equity holders of the parent	38,643	108,159	22,460	50,175	4,981	34,924	20,612	52,131
	39,297	110,443	23,396	52,180	4,981	34,924	20,612	52,131

The accompanying notes form an integral part of these financial statements.

Page 3

STANBIC IBTC HOLDINGS PLC

Statement of changes in equity

for the period ended 30 September 2023

		Ordinary		Statutory	Fair value	Share-based		Other		Ordinary	Non-
		share	Share	credit risk	through OCI	payment	AGSMEIS	regulatory	Retained	shareholders'	controlling	Total
	Note	capital	premium	reserve	reserve	reserve	reserve	reserves	earnings	equity	interest	equity
Group		N'million	N'million	N'million	N'million	N'million	N'million	N'million	N'million	N'million	N'million	N'million
Balance at 1 January 2023		6,479	102,780	3,904	3,083	-	14,476	55,492	213,449	399,663	8,008	407,671
Total comprehensive income for the period		-	-	-	1,242	-		-	106,917	108,159	2,284	110,443
Profit for the period									106,917	106,917	2,332	109,249
Other comprehensive income after tax for the period		-	-	-	1,242	-	-	-	-	1,242	(48)	1,194
Net change in fair value on debt financial assets at FVOCI		-	-		614	-	-	-	-	614	(48)	566
Net change in fair value on equity financial assets at FVOCI		-	-	-	9	-	-	-	-	9	-	9
Realised fair value adjustments on financial assets at FVOCI		-	-	-	315	-	-	-	-	315	-	315
Expected credit loss on debt financial assets at FVOCI		-	-	-	304	-	-	-	-	304	-	304
Income tax on other comprehensive income		-	-	-	-	-	-	-	-	-	-	-
Transfer to statutory reserve		-	-	-	-	-	-	-	-	-	-	-
Statutory credit risk reserve		-	-	636	-	-	-	-	(636)	-	-	-
Transfer to AGSMIEIS		-	-	-	-	-	-	-	-	-	-	-
				-
Transactions with shareholders, recorded directly in equity		-	-	-	-	-	-	-	(45,349)	(45,349)	(1,710)	(47,059)
Equity-settledshare-based payment transactions		-	-	-	-	-	-	-	-	-	-	-
Increase in paid-up capital (bonus issue)	17.1	-	-	-	-	-	-	-	-	-	-	-
Dividends paid to equity holders	17.2	-	-	-	-	-	-	-	(45,349)	(45,349)	(1,710)	(47,059)
Balance at 30 September 2023		6,479	102,780	4,540	4,325	-	14,476	55,492	274,381	462,473	8,582	471,055
Balance 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 payment						(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 income/(loss) for the period		-	-	-	(2,956)	-		-	53,131	50,175	2,005	52,180
Profit for the period									53,131	53,131	2,054	55,185
Other comprehensive income after tax for the period		-	-	-	(2,956)	-	-	-	-	(2,956)	(49)	(3,005)
Net change in fair value on debt financial assets at FVOCI		-	-	-	(3,615)	-	-	-	-	(3,615)	(49)	(3 664)
Net change in fair value on equity financial assets at FVOCI		-	-	-	631	-	-	-	-	631	-	631
Realised fair value adjustments on financial assets at FVOCI		-	-	-	(127)	-	-	-	-	(127)	-	( 127)
Expected credit loss on debt financial assets at FVOCI		-	-	-	155	-	-	-	-	155	-	155
Income tax on other comprehensive income		-	-	-	-	-	-	-	-	-	-
Statutory credit risk reserve		-	-	1,755	-	-	-	-	(1,755)	-	-	-
Transfer to statutory reserves										-	-	-
Transfer to AGSMEIS reserves		-	-	-	-	-	1,479	-	(1,479)	-	-	-
Transactions with shareholders, recorded directly in equity		-	-	-	-	-	-	-	(45,350)	(45,350)	(3,519)	(48,869)
Equity-settledshare-based payment transactions		-	-	-	-	-	-	-	-	-	-	-
Increase in paid-up capital (scrip issue)	17.1	-	-	-	-	-	-	-	-	-	-	-
Dividends paid to equity holders	17.2	-	-	-	-	-	-	-	(45,350)	(45,350)	(3,519)	(48,869)
Balance at 30 September 2022		6,479	102,780	7,194	1,254	-	11,719	55,492	187,923	372,841	7,336	380,177

The accompanying notes form an integral part of these financial statements.

Page 4

STANBIC IBTC HOLDINGS PLC

Statement of changes in equity

for the period ended 30 September 2023

			Fair value	Share-based	Other		Ordinary
	Ordinary	Share	through OCI	payment	regulatory	Retained	shareholders'
	share capital	premium	reserve	reserve	reserves	earnings	equity
Company	N'million	N'million	N'million	N'million	N'million	N'million	N'million
Balance at 1 January 2023	6,479	102,780	-	-	-	13,706	122,965
Reclassification of share-based payment						-	-
Total comprehensive income for the period	-	-	-	-	-	34,924	34,924
Profit for the period	-	-	-	-	-	34,924	34,924
Transactions with shareholders, recorded directly in equity	-	-	-	-	-	(45,349)	(45,349)
Equity-settledshare-based payment transactions	-	-	-	-	-	-	-
Increase in paid-up capital (bonus issue)	-	-	-	-	-	-	-
Dividends paid to equity holders	-	-	-	-	-	(45,349)	(45,349)
Balance at 30 September 2023	6,479	102,780	-	-	-	3,281	112,540
Balance at 1 January 2022	6,479	102,780	-	19	-	8,342	117,620
Reclassification of share-based payment				(19)		19	-
Total comprehensive income/(loss) for the period	-	-	-	-	-	52,131	52,131
Profit for the period	-	-	-	-	-	52,131	52,131
Transactions with shareholders, recorded directly in equity	-	-	-	-	-	(45,350)	(45,350)
Equity-settledshare-based payment transactions	-	-	-	-	-	-	-
Transfer of vested portion of equity settled share based payment to	-	-	-	-	-	-	-
retained earnings
Increase in paid-up capital (scrip issue)	-	-	-	-	-	-	-
Dividends paid to equity holders	-	-	-	-	-	(45,350)	(45,350)
Balance at 30 September 2022	6,479	102,780	-	-	-	15,142	124,401

The accompanying notes form an integral part of these financial statements.

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STANBIC IBTC HOLDINGS PLC

Consolidated and separate statement of cash flows for the period ended 30 September 2023

	Note	Group			Company
					30-Sep-23	30-Sep-22		30-Sep-2330-Sep-22
					N million	N million		N million	N million
Net cash flows from operating activities					406,749	(44,440)	(6,657)	57,762
Cash flows used in operations					351,173	(105,514)	(45,538)	2,613
Profit before tax					129,458	68,946	34,960	52,138
Adjusted for:					(103,933)	(66,680)	(38,667)	(55,070)
Credit impairment charge on financial instruments					9,956	7,460	-	-
Amortisation of intangible assets	15.2				574	574	-	-
Depreciation of property and equipment	14.2				5,343	4,310	192	71
Amortisation of right of use assets	16				1,409	1,152	38	22
Dividends included in other revenue	27.6				(655)	(435)	(38,725)	(55,058)
Interest expense					64,088	27,396	-	-
Interest income					(184,591)	(107,057)	(171)	(104)
Loss/(profit) on sale of property and equipment					(57)	(80)	(1)	(1)
Increase in assets	23.1				(930,656)	(273,212)	(5,696)	(21,869)
Increase in deposits and other liabilities	23.2				1,256,304	165,432	(36,135)	27,414
Dividends received					590	392	38,725	55,058
Interest paid					(62,078)	(29,603)	-	-
Interest received					132,287	105,700	171	104
Direct taxation paid					(15,223)	(15,415)	(15)	(13)

Net cash flows used in investing activities

Capital expenditure on - property

• equipment, furniture and vehicles
• right of use
• intangible assets

Proceeds from sale of property, equipment, furniture and vehicles Additional investment in existing subsidiary

Sale of /(Investment in) financial investment securities, net

Net cash flows used in financing activities
Net increase/(decrease) in other borrowings
Net increase/(decrease) in debt securities issued
Cash dividends paid	17.2

(169,110)	7,866	16,827	(241)
(2,707)	(253)	-	-
(18,427)	(7,236)	(1,473)	(175)
(2,148)	(393)	(176)	-
(13)	(652)	-	-
3,202	180	45	16
-	-	(600)	-
(149,017)	16,220	19,031	(82)
102,165	5,362	(45,349)	(45,350)
97,660	27,510	-	-
51,564	26,721	-	-
(47,059)	(48,869)	(45,349)	(45,350)

Net increase in Cash and Cash equivalent		339,804	(31,212)	(35,179)	12,171
Effect of exchange rate changes on Cash and Cash		(113,367)	(4,914)	-	-
equivalent
Cash and cash equivalent at beginning of the period		611,267	216,232	50,294	53,236
Cash and cash equivalent at end of the Period	23.3	837,704	180,106	15,115	65,407

The accompanying notes form an integral part of these financial statements.

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STANBIC IBTC HOLDINGS PLC

Notes to the condensed consolidated interim financial statements for the period ended 30 September 2023

1. Reporting entity
   Stanbic IBTC Holdings PLC (the 'company') is a company domiciled in Nigeria. The address of the company is IBTC Place, Plot 1C Walter Carrington Crescent, Victoria Island, Lagos. The condensed consolidated interim financial statements as at and for the period ended 30 September 2023 comprise the company and its subsidiaries (together referred to as the 'group'). The group is primarily involved in the provision of banking and other financial services to corporate and individual customers.
2. Basis of preparation

1. Statement of compliance
   The condensed consolidated interim financial statements for the period ended 30 September 2023 have been prepared in accordance with IAS 34 Interim Financial Reporting. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the group since the last annual consolidated financial statements as at and for the year ended 31 December 2022.
   This condensed consolidated interim financial statements for the period ended 30 September 2023 does not include all the information required for full annual financial statements prepared in accordance with International Financial Reporting Standards (IFRS), and should be read in conjunction with the consolidated financial statements as at and for the year ended 31 December 2022.
   The consolidated and separate financial statements for the period ended 30 September 2023 was approved and authorised for issue by the Board of Directors on 27 October 2023.
   Changes to significant accounting policies are described in note 3.
   Securities Trading Policy
   In compliance with Rule 17.15 Disclosure of Dealings in Issuers' Shares, Rulebook of The Exchange 2015 (Issuers' Rule),Stanbic IBTC Holdings PLC maintains a Security Trading Policy (Policy) which guides Directors, Audit Committee members,employees and all individuals categorized as insiders in relation to their dealings in the Company's shares. The Policy undergoes periodic review by the Board and is updated accordingly. The Company has made specific inquiries of all its directors and other insiders and is not aware of any infringement of the Policy during the period.
2. Basis of measurement
   The condensed consolidated interim financial statements for the period ended 30 September 2023 have been prepared on the historical cost basis except for the following material items in the statement of financial position:
3. • derivative financial instruments are measured at fair value
   • financial instruments at fair value through profit or loss are measured at fair value
   • financial assets are measured at fair value through other comprehensive income
   • liabilities for cash-settledshare-based payment arrangements are measured at fair value
   • trading assets and liabilities are measured at fair value

The group applies accrual accounting for recognition of its income and expenses.

1. Functional and presentation currency
   The condensed consolidated interim financial statements are presented in Nigerian Naira, which is the company's functional and presentation currency. All financial information presented in Naira has been rounded to the nearest million, except when otherwise stated.
2. Use of estimates and judgement
   The preparation of the condensed consolidated interim financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.
   In preparing these condensed consolidated interim financial statements, significant judgements made by management in applying the group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 December 2022.

3 Statement of significant accounting policies

Except as described below, the accounting policies applied by the group in preparation of these condensed annual financial statements are consistent with those applied by the group in the preparation of its consolidated annual financial statements for the year ended 31 December 2022.

Page 7

STANBIC IBTC HOLDINGS PLC

Notes to the consolidated and separate financial statements

for the period ended 30 September 2023

3 Changes in accounting policies (continued)

The group has adopted IFRS 17 Insurance Contracts (see 3.1) from 01 January 2023. A number of other new standards are effective from 01 January 2023 such as Disclosure of Accounting Policies - Amendments to IAS 1, Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12), and IFRS Practice Statement 2 and Definition of Accounting Estimate - Amendments to IAS 8 , but they do not have a material effect on the group's financial statements.

3.1 IFRS 17 Insurance Contracts

This standard replaces IFRS 4 Insurance Contracts and establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts within the scope of the standard. The objective of IFRS 17 is to ensure that an entity provides relevant information that faithfully represents those contracts. This information gives a basis for users of financial statements to assess the effect that insurance contracts have on the entity's financial position, financial performance and cash flows.

Scope

The scope of IFRS 17 applies to contracts meeting the definition of:

1. Insurance contracts, including reinsurance contracts, it issues;
2. Reinsurance contracts it holds; and
3. Investment contracts with discretionary participation features it issues, provided the entity also issues insurance contracts.

Some contracts meet the definition of an insurance contract but have as their primary purpose the provision of services for a fixed fee. Such issued contracts are in the scope of the standard, unless an entity chooses to apply IFRS 15 Revenue from Contracts with Customers and provided the following conditions are met:

• the entity does not reflect an assessment of the risk associated with an individual customer in setting the price of the contract with that customer;
• the contract compensates the customer by providing a service, rather than by making cash payments to the customer; and
• the insurance risk transferred by the contract arises primarily from the customer's use of services rather than from uncertainty over the cost of those services.

Page 8