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: +234-1- 4227000. +234-1- 4488900 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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2
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63-65
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. |
Page 2
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.
Page 5
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.
Page 6
STANBIC IBTC HOLDINGS PLC
Notes to the condensed consolidated interim financial statements for the period ended 30 September 2023
- 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. - Basis of preparation
-
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. - 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: - 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.
-
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. - 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:
- Insurance contracts, including reinsurance contracts, it issues;
- Reinsurance contracts it holds; and
- 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.
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Stanbic IBTC Bank plc published this content on 27 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2023 11:54:05 UTC.