Banking
S&P Affirms Ratings on Stanbic IBTC Bank, Predicts Robust Earnings in 2018
By Dipo Olowookere
S&P Global Ratings has announced affirming its ‘B/B’ long- and short-term issuer credit ratings on Nigeria-based Stanbic IBTC Bank PLC with a stable outlook.
In a statement issued by the firm, it was disclosed that the ‘ngBBB/ngA-2’ long- and short-term Nigeria national scale ratings on the bank were also affirmed.
Stating further, S&P said its ratings on Stanbic IBTC reflect the creditworthiness of the entire Stanbic
IBTC group because it considers the lender to be the core component of the group.
In addition, it disclosed that Stanbic IBTC Bank is strategically important to the South Africa’s Standard Bank Group (SBG) Ltd and it therefore factored in one notch of group support above Stanbic IBTC’s unsupported group credit profile (GCP), which was assessed at ‘b-‘.
The rating agency noted that the ratings on Stanbic IBTC are capped by the foreign currency sovereign credit ratings on Nigeria as it does not rate Nigerian banks above the sovereign because of the likely direct and indirect influence of sovereign distress on their operations, including their ability to service foreign currency obligations.
Stanbic IBTC operates in the mid-tier of the competitive Nigerian banking sector, and its business position benefits from its affiliation to SBG, as well as its brand recognition and segment diversification. Its corporate and investment banking division accounted for 53.5% of group revenues in 2017. Its wealth management business accounted for 19% of group revenues in the same period. These two divisions were the main contributors to the group’s profitability, resulting in a strong return on equity (ROE) of 28.9% at year-end 2017.
S&P said it expects future profitability to compare well to top-tier Nigerian banks’ with an ROE at around 20%-22% over the next two years.
In contrast, Stanbic’s retail franchise profitability lags behind the other two segments owing to high impairment charges and a weak cost-to-income ratio.
That said, it remains central to the bank’s long-term strategy and focuses on noninterest income as opposed to pure loan growth. It does this by offering enhanced client services via a transactional platform, which will also help attract low cost deposits.
The bank’s funding cost improved slightly to 4.0% in the first quarter of 2018 from 4.6% in 2017. This compares well to some top-tier banks’ cost of funds despite a comparatively modest retail franchise. At the same time, the Stanbic IBTC group improved its cost-to-income ratio to 49%, from 55% in 2016, which better aligns with the best-performing banks in Nigeria.
“We expect Stanbic IBTC to report resilient earnings in 2018 despite muted loan growth, and we estimate our risk-adjusted capital (RAC) ratio will remain broadly stable in the 5.2%-5.7% range over the next 12-18 months compared with 5.1% at year-end 2017.
“We assume a convergence of the investor and exporter window rate toward the parallel rate of N360/$1 in 2018. We also expect falling yields on Treasury bills (T-bills) to put pressure on net interest margins in 2018 as the federal government issues fewer T-Bills.
The group’s strong earnings capacity will support its large capitalization buffer above its minimum regulatory capital of 10% through earnings retention. We estimate the group’s earnings buffer to be above 100 basis points (bps) in 2018, which compares adequately with the best performing Nigerian banks.
“We note that in the first quarter of 2018, the group’s capital adequacy ratio (CAR) has improved despite the IFRS 9 implementation. Stanbic IBTC group’s CAR continued to improve to 25.4% compared to 23.5% reported in 2017. The IFRS 9 adjustment was not material. In the first quarter of 2018, the group adjusted its retained earnings by N10.173 billion for credit impairments and N118 million for other classification and measurement requirements, as a result of IFRS 9 transition,” the rating firm said in the statement.
It said further that, “While we expect high impairment charges to somewhat weigh on the bank’s profitability, we forecast ROE to reduce from its 2017 peak to average 20%-22% over the next two years. While the group managed to record N1 billion in loan recoveries in Q1 2018, we still expect cost of risk to remain high, between 4.5%-5.0% in the next 12-18 months.
“We anticipate nonperforming loans (NPLs) will average 8% in 2018-2019. Our elevated projections are a consequence of high singleobligor concentration. The top-20 loans accounted for 48% of total loans at year-end 2017 while the top-20 NPLs represented over 74% of the bank’s total NPLs at the same date.
“Positively, the bank maintains good loan loss reserve coverage of NPLs, which should remain at about 100% in the next 12-18 months. This, combined with strong earnings capacity, mitigates our view of weaker asset quality indicators compared with peers.”
S&P said the bank’s funding structure has improved over time and mostly relies on customer deposits.
“We think Stanbic IBTC also benefits from its brand reputation and the expertise available within the broader SBG to drive its corporate and investment banking relationships. The group maintains a liquid balance sheet. It has proactively managed its foreign currency balance sheet and has access to parent support in case of need. The group reported a net stable funding ratio of 189% at year-end 2017 and exhibits one of the lowest levels of loan leverage among top peers in Nigeria. Broad liquid assets covered short-term wholesale funding about 5x at the same date,” it added.
By Modupe Gbadeyanka
The women-focused initiative by Sterling Bank, OneWoman, is already yielding positive results, especially in promoting financial inclusion and empowering female-led enterprises in Nigeria.
Business Post reports that the programme was created to support women through three key pillars of capital, capacity, and community.
In 2025, according to the Head of the OneWoman Initiative, Ms Ezinne Nwokafor, the initiative gave out N43.9 billion loans to 2,450 female entrepreneurs, trained 6,000 of them, served about 380,000 women across three sectors of career women, women in business and freshers, and their vision 2030 is to give out N500 billion loans to one million women across their three sectors.
She noted that a significant majority of Nigerian women remain excluded from formal credit, with only a small percentage able to access structured financing. Despite improvements in financial inclusion, women continue to face systemic barriers that limit their ability to secure funding.
Ms Nwokafor pointed out that women account for a substantial share of micro, small, and medium enterprises and contribute meaningfully to the economy, yet face a financing gap estimated at $42 billion annually, according to the International Finance Corporation.
She also referenced data showing that more than half of women-led businesses identify access to finance as a major constraint, while rejection rates for loan applications remain significantly higher for women than for men.
According to her, these challenges are often linked to structural issues such as gaps in asset ownership, social norms, and limited access to financial data and visibility.
“Sterling’s OneWoman initiative is positioned to bridge this gap by combining financial solutions, mentorship, capacity building, and community support for women across different stages of their journey,” she said at the Funding Her Future Breakfast Dialogue in Lagos.
The session brought together voices from across sectors for a focused and necessary conversation on how to unlock more inclusive and effective financing pathways for women-led businesses in Nigeria.
On his part, the chief executive of Sterling Bank, Mr Abubakar Suleiman, said, “Women-led businesses need the right support systems, the right networks, and the right ecosystem to grow with confidence and scale with resilience.”
By Modupe Gbadeyanka
Alpha Morgan Bank has reaffirmed its commitment to supporting institutions that drive intellectual growth and national development.
The lender gave this reassurance at the commissioning of the Redeemer’s University Business School by Pastor (Mrs) Folu Adeboye, the wife of the General Overseer of the Redeemed Christian Church of God (RCCG), Pastor Enoch Adeboye.
Speaking at the event, the Managing Director of Alpha Morgan Bank, Mr Ade Buraimo, said the company was proud to be associated with the school, noting its commitment to education and institutional development.
As part of its broader focus on knowledge sharing and thought leadership, Alpha Morgan Bank will host its Economic Review Webinar in May 2026, bringing together experts to share insights on key economic trends and opportunities.
The commissioning of the business school was witnessed by distinguished guests, including the Pro-Chancellor and Chairman of the Governing Council of Redeemers University, Professor Oluwatoyin Ogundipe; the Vice Chancellor, Professor Shadrach Olufemi Akindele; Mrs Bola Obasanjo; and other notable dignitaries.
By Adedapo Adesanya
Zenith Bank Plc has announced the successful completion of its acquisition of the entire issued share capital of Paramount Bank Kenya Limited (PBL), following the receipt of all necessary regulatory approvals in both Nigeria and Kenya.
The development marks a significant milestone in the bank’s regional expansion strategy, reinforcing its ambition to deepen its presence across Sub-Saharan Africa.
The acquisition provides Zenith Bank with a strategic entry into the East African market, positioning it to better support cross-border trade and serve its growing base of regional and international clients.
“This acquisition marks a significant step towards our long-term strategic growth agenda and a strong inroad into the East African markets. It further reinforces the Bank’s position as a leading financial institution in Sub-Saharan Africa and affirms the Bank’s mantra of following our customers’ businesses,” the lender said in a statement.
The development comes after Zenith Bank previously refuted recent media reports and online commentary in November 2025, claiming that the bank is in the process of acquiring Paramount Bank in Kenya as part of its expansion into the East African market.
The move also strengthens Zenith Bank’s competitive positioning within Africa’s banking landscape, as Nigerian tier-one banks continue to pursue regional expansion to unlock new growth opportunities. Others like Access Bank and GT Bank have expanded reach in the last few years.
It will be recalled that the management of Zenith Bank, led by Ms Adara Umeoji, at the Nigeria Exchange (NGX), assured shareholders during the recapitalisation exercise that proceeds from the rights issue and public offer would be allocated to the global expansion of Zenith Bank operations, alongside increased funding for the real sector and upgrading technology infrastructure.
According to her, “35 per cent of the proceeds will fund the bank’s global expansion strategy, increasing its footprint in Africa and other parts of the world. 45 per cent will be deployed as working capital to support the real sector of the economy, and 20 per cent will be used to enhance the bank’s IT infrastructure and digital capabilities.”
Last month, Zenith Bank also expanded its operations to the United Kingdom by opening its Manchester branch office. It also unveiled plans to secure a full listing on the London Stock Exchange, one of the world’s leading stock exchanges.
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