Banking

Examining Stanbic IBTC vis-à-vis Banking Industry Compliance and Corporate Governance Practices

Published

7 years ago

24/07/2019

At a recent function in Abuja, the Managing Director/CEO of the Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim, delivered a lecture where he revealed that there has been a consistent decline, over the past three years, in the recorded rate of successful fraud incidences, thefts and forgeries in the banking industry. Specifically, Ibrahim said such cases had declined by almost half, 48.12%, of the rate it was in 2015.

In response to how the industry was able to achieve such impressive reductions, Ibrahim, while putting in perspective the key reason for frauds to help buttress his response, explained that poor corporate governance practices in terms of regulatory and supervisory oversight and compliance allow frauds and forgeries to thrive. So all that needed to be done was to ensure a stronger corporate governance practice. He said the reduction is indicative of the strict adherence to sound corporate governance practices by banks, which include compliance with regulations.

Indeed, experts at a recent workshop organized by the National Institute of Compliance (NIC) agreed that compliance is at the heart of sound banking practices and sustainable banking and that the risk of banking industry failure is remoter now than it was some years back due to a higher level of compliance. The nature of the banking industry, with its intermediation functions, is such that failure can have very dire consequences for businesses and the economy. Thus, banks have a responsibility to ensure a stable industry and this can only be achieved by sound corporate governance practices.

In the 90s and early 2000s, regulatory and supervisory oversight was weak and compliance by banks to regulations was mainly in the breach. Then, the industry was an all comers’ affair, mostly populated by charlatans who see the industry as mainly a meal ticket. Banks were being opened at a dizzying pace then, with sometimes three or four opened in a month. Before the recapitalization exercise of 2005, there were close to 200 banks in the country. There was widespread corruption in the industry at the time, which led to billions of naira of depositors’ money and investors’ funds lost or misappropriated. But following the recapitalization exercise and especially after the global financial crisis of 2008, corporate governance became a major issue leading to the introduction of a raft of corporate governance codes.

For a bank like Stanbic IBTC, regulatory compliance comes like second nature. The brand’s penchant for regulatory compliance was validated in 2015 at the maiden edition of the Corporate Affairs Commission’s Corporate Citizens Awards. Stanbic IBTC Bank came first for compliance among Nigerian banks and was awarded the Most Extensive Compliance award. According to CAC, “over 800 companies were nominated for the awards, only 26 companies made the final list, out of which the nine winning companies emerged,” including Stanbic IBTC and three other banks.

Certainly, there is no better validation than a regulator attesting to a company’s good corporate citizenship. And it is no surprise that a bank like Stanbic IBTC was adjudged the first among equals in terms of compliance.

Many sometimes view the bank’s processes and policies as cumbersome because of the different layers of regulatory requirements it insists must be met before a transaction can be consummated. But then on the flip side is that Stanbic IBTC Bank is one of the most secure, transparent and trusted financial institutions in the country today.

These qualities continue to translate into very strong financial performances in its operations and a bullish outlook for the stock at the Nigerian Stock Exchange.

In its 2018 financial report, Stanbic IBTC Bank posted an impressive 54% growth in PAT. Balance sheet grew by 20% to N1.6 trillion, driven mainly by deposit growth of 7%. And most importantly, was able to improve its asset quality as ratio of non-performing loans to total loans improved to 3.9%.

Financial institutions, particularly Stanbic IBTC, fully appreciate and understand that their survival depend on how well they are able to manage the relationships amongst their stakeholders, which require them to establish and maintain harmony between parties whose interests sometimes conflict. It is the management of such relationships that corporate governance code embodies. It is this realisation that led banks to self-regulate when in 2003 the Code of Corporate Governance for Banks and Other Financial Institutions in Nigeria was established by the Bankers’ Committee and CIBN.

Stanbic IBTC’s strong corporate governance practices are critical to the financial institution’s continued growth trajectory. The seamlessness of its change of leadership last year was quite impressive and such practices will no doubt give it the desired stability to further increase its market share and to post impressive financial results, going forward.

With the 2003 code, the 2014 CBN code and a spate of regulations by the apex bank as situation demands, which makes for a stronger regulatory oversight, one can almost argue that the possibility of a banking industry failure is remoter than constant uninterrupted power supply in the country. Despite the cost of compliance, which can sometimes be huge and burdensome in terms of time and direct cost, and the risk of managements of banks becoming particularly focused on compliance at the expense of doing business, financial institutions remain resolute in ensuring a strong and viable industry. And this is beginning to produce dividends as shown by the recent NDIC figures and the industry’s financial scorecards.

Today, banks sometimes face the wrath of stakeholders as they strive to comply with regulatory directives. A case in point was the directive by the CBN that banks publish the names of delinquent debtors on its books, which did not go down well with some customers.

Another was the foreign exchange utilization position, mandated to be published weekly, and the various restrictions to dollar disbursements to bank customers. Treasury Single Account (TSA), which required all agencies of government to each maintain a single account with the CBN, leading to the withdrawal of trillions of naira from commercial banks, was another policy that banks would have gladly avoided but nonetheless diligently complied with. And most recently is the ‘appointment’ of banks by the Federal Inland Revenue Service as tax collecting agents, which pitched the banks directly against some of their customers and trade partners.

There is no doubt that there is a new compliance orientation in the banking industry. And as banks like Stanbic IBTC, Zenith Bank, Access Bank and UBA continue to lead the financial services industry towards improved compliance levels, it will not only check corruption in the banking industry and risk of possible collapse, it will, due to banks’ pivotal role in the economy, help sanitize business practices and thereby attract investors and boost the economy.

Banking

Children’s Day: Zenith Bank Renews Commitment to Raising Tomorrow’s Leaders

Published

17 hours ago

27/05/2026

Modupe Gbadeyanka

By Modupe Gbadeyanka

Zenith Bank is championing the narrative that children are the true leaders of tomorrow by deepening its investment in carefully curated initiatives that elevate kids across education, financial literacy, health, digital inclusion, and social protection, building a generation equipped to thrive and lead.

For Zenith Bank, much more than commemorating the annual Children’s Day marked every May 27, every child matters, and the bank’s footprint reflects a deliberate, pan-African strategy to nurture potential from the earliest age.

Zenith Bank has been the financial institution partner to Kiddies Corner on Inspiration 92.3FM Lagos for over three years, anchoring the Tuesday edition and the Zenith Financial Literacy Friday show. The programme blends spelling bee contests with financial literacy questions, creating awareness and onboarding children into the Zenith Children’s Account (ZECA). This partnership came alive at the Inspiration FM Children’s Day Carnival on Saturday, May 23, 2026, where Zenith Bank hosted over 1,000 children and their parents, celebrating ZECA winners with games, skits, and Zenith Bank-branded gifts.

The company’s Zenith Financial Literacy Week, held quarterly, takes this mission into select schools across all 36 states and the FCT. Students are trained on savings, budgeting, basic investments, and their retail products, with the top performer in each school awarded N50,000. Complementing this is the Bank’s nationwide Financial Literacy Program under the CBN-mandated Global Money Week, which in 2025 alone reached 3,622 students across 22 LGAs, deploying 137 bank employee volunteers as educators.

In alignment with the United Nations’ (UN) Sustainable Development Goal (SDG) 4 on Quality Education, Zenith Bank has donated state-of-the-art ICT centres and computer systems to schools and universities nationwide, including a Computer Centre to Bamaina Academy, Dutse, Jigawa State. Its transformative interventions include fully equipped libraries, vocational facilities, and large-scale school renovations, from Ojota Secondary School and Victoria Island Secondary School in Lagos to Hugallawa Primary School in Jigawa. Targeted financial support further breaks barriers with a N1 million cash donation to Louisville Girls High School, Ijebu-Itele, supporting girl-child education; infrastructure upgrades at Maryland Comprehensive Secondary School; a N1 million scholarship endowment for St. Francis Catholic Secondary School; and support for the North-East Children’s Fund to aid education in conflict-affected communities.

Through its Primary Healthcare Centre Initiative across all 774 LGAs, Zenith Bank educates parents on early childhood savings during routine visits, linking health and financial well-being. The “PAD-A-QUEEN” Initiative commemorates the International Day of the Girl Child, reaching 5,000 girls in 10 schools with sanitary pads, hygiene kits, and menstrual health education to keep girls in school and promote SDGs 3, 4, and 5.

The lender’s compassion extends to the most vulnerable. At Bethesda Home and School for the Blind, Idi Oro, Lagos, Zenith donated braille materials, food, and toiletries. For the 2026 International Day for Street Children, it partnered with Bosco Child Protection Centre on medical check-ups, food, clothing, and counselling. Annual Christmas Charity Visits to orphanages deliver cash, toys, and essential supplies, while support for the Smile and Shine Children Foundation’s Strive Conference empowers over 2,000 adolescents with life skills and leadership training.

“At Zenith Bank, we are deliberate about initiatives that elevate children because they are not just our future, they are our present responsibility. As Whitney Houston so poignantly sang, ‘I believe the children are the future, teach them well and let them lead the way.’ That is the philosophy driving our investments in education, financial literacy, health, and digital inclusion. From Kiddies Corner to ICT centres, from PHCs to orphanages, we are teaching them well, equipping them early, and giving them the tools to lead. Zenith Bank renews its commitment to every Nigerian child, to nurture their dreams, protect their dignity, and secure their tomorrow,” the chief executive of Zenith Bank, Ms Adaora Umeoji, commented.

Championing youth expression, the Zenith Annual Youth Parade, hosted by the Bank for 19 years, stands as a flagship Corporate Social Responsibility initiative. Bringing together thousands of children and teenagers in a vibrant showcase of unity and discipline, the parade has remained dedicated since its inception to the vital mission of supporting, nurturing, and empowering the Nigerian child, reinforcing the Bank’s belief that leadership is learned early through teamwork, confidence, and celebration of young Nigerian identity.

For Zenith Bank, Children’s Day is more than a date on the calendar. It is a daily pledge to empower, protect, and prepare Nigeria’s children for leadership. From classrooms to communities, the Bank’s initiatives are teaching them well and letting them lead the way because the future belongs to children who are equipped today.

Banking

Shareholders Authorise Abbey Mortgage Bank to Raise Fresh Funds

Published

1 day ago

26/05/2026

Aduragbemi Omiyale

By Aduragbemi Omiyale

The board of Abbey Mortgage Bank Plc has been given the approval to raise additional capital aimed at helping the company achieve its next phase, which is centred on delivering seamless and digitally driven banking experiences that eliminate the traditional barriers to premier financial services.

At the 34th Annual General Meeting (AGM) of the lender on Monday, investors authorised the raising of up to N100 billion through an offer by way of issuance of shares (whether by rights issue and/or public offer), global depository receipts, commercial papers, loans, convertibles or non-convertibles, medium term notes, bonds, and/or any other instruments either as a stand-alone or by way of programmes, in such tranches, series or proportions, at such coupon or interest rates, within such maturity periods, and on such terms and conditions; including through book building process or such other processes all of which shall be as determined by the directors, subject to obtaining the approvals of relevant regulatory authorities.

The directors were also allowed to raise fresh equity capital of up to N65.547 billion by way of private placement of 26,562,647,265 ordinary shares of 50 Kobo each at N2.43 per share, subject to regulatory approvals.

In addition, shareholders approved the increase in the company’s issued share capital from N5,076,923,077 divided into 10,153,846,154 of 50 Kobo each to N18,358,246,709.50 by the creation of up to 26,562,647,265 ordinary shares of 50 Kobo each, such new shares to rank pari passu in all respects with the existing ordinary shares in the capital of the bank.

Addressing investors at the meeting, the chief executive of Abbey Mortgage Bank, Mr Mobolaji Adewumi, said, “Shaping the future means building a resilient institution that is as agile as it is reliable, while ensuring that every stakeholder benefits meaningfully from our growth and expansion.”

The company’s leadership also highlighted its strategic progress and strong corporate governance culture that positions the institution to deliver broader financial services and enhanced customer experiences.

The meeting also provided an opportunity to appreciate shareholders for their continued confidence, loyalty, and support, which have remained instrumental to its growth journey over the years.

Banking

Spending Limit on GTBank Naira Card Now $20,000

Published

2 days ago

26/05/2026

Aduragbemi Omiyale

By Aduragbemi Omiyale

The international spending limit on the GTBank Naira card has now been increased to $20,000 per quarter, a notice from the financial institution disclosed.

In an email message to customers sighted by Business Post on Tuesday, the lender said the Dollar limit is applicable to POS and online transactions carried out with the debit card.

The increase in the spending limit on the GTBank Naira card for offshore transactions comes as Nigeria continue to experience stability in the foreign exchange (FX) market.

A few years ago, Nigerians were unable to use their Naira cards to conduct financial transactions online for operations outside the country. This frustrated many consumers, who could not buy things online from other jurisdictions.

However, after some forex reforms by the Central Bank of Nigeria (CBN) under the leadership of Governor Yemi Cardoso, these restrictions were removed.

“The Dollar limit on your GTBank Naira Card is now $20,000 quarterly,” the notice read.

The increase in the spending limit to $20,000 per quarter will give GTBank Naira cardholders an opportunity to make more transactions online with ease, as before now, it was pegged at $15,000.