Banking
GCR Affirms AA-(NG) Rating on Stanbic IBTC Bank
By Dipo Olowookere
The national scale ratings of AA-(NG) and A1+(NG) in the long and short term respectively have been assigned to Stanbic IBTC Bank Plc by Global Credit Ratings (GCR).
According to a statement issued by the rating agency, Stanbic IBTC’s competitive position strengthened in FY17, underpinned by an improved market share of 3.9% (FY16: 3.1%) based on total industry assets.
A key rating strength is the implied financial and technical support from its ultimate parent, SBG (the largest banking group in Africa, in terms of balance sheet size and earnings).
Stanbic IBTC is a Tier 2 bank wholly owned by Stanbic IBTC Holdings PLC, which is a member of the Standard Bank Group.
Stanbic IBTC is considered adequately capitalised for its current risk level, with a relatively stable regulatory risk weighted capital adequacy ratio (CAR) of 20.5% at FY17 (FY16: 21.0%), well above the regulatory minimum of 10%.
Shareholders’ funds registered at N138.7bn at FY17, representing a four-year compounded annual growth rate (“CAGR”) of 16.9% over the review period.
Asset quality came under pressure in FY17 on the back of the challenging macro-economic environment constraining debt serviceability of obligors. As a result, the bank’s non-performing loans (NPL) rose by a notable 69.5% to N31.7 billion, translating to NPL ratio of 7.9% at FY17 (FY16: 5.0%), above CBN’s tolerable limit of 5%.
Notwithstanding this, specific provision coverage of NPLs improved to 65.9% (FY16: 59.9%).
According to management, intensified effort on recoveries as well as loan restructuring within troubled sectors (particularly communication, real estate and oil and gas) is expected to positively impact on asset quality going forward.
Stanbic IBTC maintains a conservative funding and liquidity profile, with a sizeable portion of its assets held in cash and highly liquid investment securities.
In this regard, the bank’s regulatory liquidity ratio was maintained above 72.1% throughout FY17, against the required minimum of 30%. Also, the bank’s liquid and trading assets to total short-term funding ratio of 68.9% compares favourably with peers’ average at FY17.
The bank reported an after tax profit of N28.8 billion in FY17, representing a notable 91.9% year-on-year growth. While net interest income was largely supported by improved investment yields, non-interest income was driven by increased earnings from the trading book (fixed-income and foreign exchange gains).
Overall, key profitability indicators strengthened, with returns on average equity and assets (ROaE and ROaA) improving to 23.3% and 2.6% (FY16: 14.7% and 1.6%) respectively.
At 1Q FY18, the bank posted a pre-tax profit of N16.6 billion, supporting a positive profitability trend expected over the rating horizon.
Maintaining strong financial metrics in terms of profitability, asset quality and capitalisation, and a further strengthening of the bank’s competitive position in the domestic market, would be favourably considered.
However, the ratings are sensitive to a sharp deterioration in key asset quality indicators, earnings, capital adequacy and liquidity, as well as a reduction in the assessment of shareholders’ support.
By Aduragbemi Omiyale
A collaboration to enable fast money transfers into Nigeria has been entered into between Flutterwave and Xoom, PayPal’s international digital money transfer service.
The partnership allows Xoom transfers to be converted by Flutterwave and settled locally in Naira, enabling quick transfers directly into recipients’ bank accounts at Access Bank, UBA, Zenith Bank, First Bank, GTBank, and additional participating banks across Nigeria.
The deal also enables Xoom’s global network with Flutterwave’s local payout infrastructure, allowing users globally to send funds directly into Nigerian bank accounts with improved speed and efficiency.
Nigeria is the leading remittance recipient in Sub-Saharan Africa, receiving over $20 billion in personal remittances in 2024. Despite this volume, receiving international payments has historically remained complex due to FX constraints and settlement delays. This collaboration helps address those challenges in a market of more than 232 million people, where the ICT sector is projected to contribute 21 per cent of GDP by 2027.
By combining Xoom’s expansive reach with Flutterwave’s local compliance and banking partnerships, the two companies are providing a more accessible financial corridor for the continent.
Xoom, a PayPal service, is a fast and secure international digital money transfer service that enables consumers to send money, pay bills, and reload phones for friends and family in approximately 160 markets globally.
As part of PayPal’s global payments ecosystem, Xoom leverages advanced fraud protection, compliance capabilities, and a trusted global network to help millions of customers move money quickly and securely across borders.
“We’re excited to have been chosen by Xoom for their Nigeria expansion. Millions of Nigerians rely on money from abroad to support everyday needs, whether it’s families receiving help from loved ones, freelancers getting paid for their work, or individuals earning income from the global economy. This helps make it easy and more reliable for people in Nigeria to receive funds and stay connected to opportunities beyond borders,” the chief executive of Flutterwave, Mr Olugbenga GB Agboola, stated.
By Aduragbemi Omiyale
An initiative known as Nigeria Lightning Rounds, designed to expand funding opportunities for Nigerian startups and small businesses by connecting founders with local and international investors, has been launched by ProvidusUnity Bank, in partnership with US-based global venture firm and accelerator, gener8tor.
Scheduled to be held on July 15, 2026, Nigeria Lightning Rounds will feature carefully selected startups engaging with targeted investors who have expressed interest in supporting Nigerian innovation.
Participating founders will have the opportunity to pitch their businesses through focused 15-minute virtual sessions facilitated by gener8tor and ProvidusUnity Bank’s networks.
The program will focus on high-growth sectors including fintech, healthtech, manufacturing, sustainability, and AI, but welcomes SMEs from all industries, with intending participants urged to apply via https://www.gener8tor.com/lightning-rounds/nigeria.
“We recognise that access to capital remains one of the biggest challenges facing entrepreneurs in Nigeria. Through our partnership with gener8tor, we are creating a platform that connects promising Nigerian founders with investors who can provide the support required to scale their businesses,” the Head of Business Development at ProvidusUnity Bank, Mr Ernest Elue, stated.
“The partnership reinforces ProvidusUnity Bank’s commitment to strengthening Nigeria’s entrepreneurial ecosystem by supporting innovation, enabling access to opportunities, and creating pathways for businesses with high-growth potential,” he added.
Also commenting, the Director of Lightning Rounds at gener8tor, Ms Elizabeth Larios, said, “gener8tor is thrilled to partner with ProvidusUnity Bank to extend the Lightning Rounds model into Nigeria.
“This collaboration reflects our commitment to building equitable ecosystems and driving capital to the most promising and underrepresented entrepreneurs.”
Lightning Rounds are a signature initiative of gener8tor’s investment platform, which has facilitated thousands of investor-startup meetings globally. The format is optimised to eliminate friction, reduce bias in early-stage fundraising, and help founders secure capital from investors aligned with their mission and stage. gener8tor’s previous Lightning Rounds for Nigerian Founders in 2025 featured 18 participating Investors and led to 50 investment meetings facilitated.
By Modupe Gbadeyanka
The verification of the depositors of the 46 microfinance banks, whose operating licenses were revoked by the Central Bank of Nigeria (CBN) over a week ago, has commenced.
The exercise, aimed at refunding those whose funds were trapped in the small lenders, is being conducted by the Nigeria Deposit Insurance Corporation (NDIC).
In a statement on Thursday, the agency said its staff members have been positioned at the offices of the affected banks across the country to attend to depositors.
It was disclosed that depositors of the defunct banks, who had their Bank Verification Numbers (BVNs) linked to their accounts in the failed banks, will be paid through their alternative accounts in existing banks.
However, depositors whose BVNs were not linked to their accounts in the failed banks have been encouraged to visit the affected banks’ offices with proof of account ownership, a passport photograph, verifiable means of identification (Driver’s Licence, Permanent Voter’s Card, International Passport or National ID Card) and BVN.
NDIC also stated that depositors can alternatively file their claims online through its website: www.ndic.gov.ng, to complete the Pre-Verification Claims Form by clicking on the Search Bar, and typing Pre-Verification Claims Form; opening the Form and filling in their details. They can also do so by clicking the link: https://ndic.gov.ng/ndic-pre-verification-claims-form/ or by visiting any of the NDIC offices closest to them to file their claims.
For further enquiries, the corporation can be reached on any of the following lines: 09037273810, 09038197064, 08104220807, 09064657140.
