Banking

Stanbic IBTC: Banking Industry Compliance, Corporate Governance Practices

Published

6 years ago

17/05/2019

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 is 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

Airtel Smartcash Enables Seamless Upgrade of Wallets from Tier 1 to 3

Published

3 days ago

18/04/2025

Aduragbemi Omiyale

By Aduragbemi Omiyale

The Payment Service Bank (PSB) of Airtel Nigeria, Smartcash, has enabled an easier system that allows customers to upgrade their wallets from Tier 1 to Tier 3 for a smooth, cashless, and stress-free holiday experience.

Upgrading from Tier 1 wallet provides higher transaction limits and access to more features and benefits as well as security.

The Smartcash PSB provides a reliable, cashless alternative that meets the financial needs of users wherever they are, including sending money to loved ones, paying at local markets and stores, or topping up airtime and data.

The Smartcash app now enables instant verification with customers’ NIN or BVN, secure facial recognition with a selfie, and simplified address confirmation.

“As the Easter season approaches, we recognize the financial pressure and logistical challenges that often come with holiday spending and mobility. That’s why we’re committed to ensuring that our users can carry out essential transactions from bank transfers to merchant payments quickly, safely, and conveniently.

“Our goal is to eliminate the stress of cash handling, long queues, and bank branch visits, so that Nigerians can truly focus on the spirit of the season connection, community, and celebration,” the chief executive of Smartcash PSB, Mr Tunde Kuponiyi, said.

Airtel Smartcash PSB, which launched as part of Airtel’s commitment to deepen financial inclusion, has rapidly expanded its network of agents and digital wallet users, bridging access between underserved communities and the financial system.

With services available through mobile phones and human agents across Nigeria, Smartcash offers a simple and accessible entry point into the digital economy particularly for small-scale traders, artisans, rural dwellers, and other players in the informal sector.

Banking

Access Holdings Grows Profit to N642.2bn in 2024, Customer Deposits at N22.525trn

Published

5 days ago

17/04/2025

Aduragbemi Omiyale

By Aduragbemi Omiyale

In the 2024 financial year, Access Holdings Plc excited its shareholders with a strong performance, driven by diversified income streams amid despite inflationary and macroeconomic challenges.

This resulted in a 19 per cent increase in profit before tax to N867.0 billion as the next profit went up to N642.2 billion.

Business Post observed that the company’s dynamic trading strategy spurred an 88 per cent year-on-year rise in gross earnings to N4.878 trillion from N2.594 trillion in 2023, with interest income growing by 110 per cent to N3.480 trillion and non-interest income jumping by 47.8 per cent to N1.397 trillion, supported by robust retail banking activities, and digital expansion.

In the year, total assets grew by 55.5 per cent to N41.498 trillion, and customer deposits rose by 47 per cent to N22.525 trillion, while shareholders’ funds also increased by 72 per cent to N3.760 trillion.

Last year, the group made a significant social and environmental impact across the continent, touching millions of lives and earning multiple industry accolades.

Through various corporate social investment initiatives in education, entrepreneurship, health, and the environment, it reached over 21 million individuals across Africa.

Its employee wellness programmes also covered 28,000 staff across operating entities. Access Bank, the flagship subsidiary, through its W-Initiative, disbursed loans to over a million women-led SMEs, advancing financial inclusion and gender empowerment.

The organisation’s efforts attracted prestigious recognition and awards, including three Euromoney Awards for Excellence (notably ‘Best Bank for ESG’); International Finance Award for ‘Most Innovative Bank for Community Development and Community Engagement’; and World Economic Magazine Award for ‘Most Sustainable Bank’.

In terms of economic sustainability, Access Bank recorded strong strides through its Economic, Social and Governance (ESG) programmes. It facilitated $437.42 million in DFI inflows to support MSMEs across Africa, disbursed 1.6 million digital loans to low-income individuals, and booked its first N1.4 billion diaspora mortgage loan.

The company also achieved a 13.4 per cent reduction in operational emissions, planted 57,302 trees, and enabled solar power adoption for 226 homes and businesses. Its headquarters was awarded the IFC EDGE (Excellence in Design for Greater Efficiencies) Green Building Certification for sustainable design and construction standards.

In addition, Access employees contributed 228,500 volunteer hours to various community development programmes, reinforcing the Group’s commitment to inclusive and purpose-driven impact.

The firm is focused on delivering sustainable returns to shareholders, while reinvesting in innovation, infrastructure, and cross-border expansion. Its banking subsidiary launched operations in Hong Kong, received regulatory approval in Malta, and successfully integrated its operations in Zambia and Tanzania, expanding its global footprint.

Access Bank posted significant gains across all performance metrics, with interest income growing by 110 per cent and fees and commissions rising by 81 per cent. International subsidiaries contributed 48.5 per cent to the banking segment’s PBT, demonstrating strong execution across key markets.

In 2024, Access Holdings also became the first institution to meet the Central Bank of Nigeria’s recapitalisation directive, raising N351 billion through a rights issue. The proceeds are being strategically deployed to strengthen digital infrastructure, enhance liquidity, and fuel long-term growth.

Looking ahead, Access Holdings remains committed to building a more inclusive, sustainable, and profitable future, delivering value not just to shareholders, but to society and the environment at large.

Banking

Stanbic IBTC Bank Tasks CEOs With ‘There Is More’ Campaign

Published

6 days ago

16/04/2025

Aduragbemi Omiyale

By Aduragbemi Omiyale

An initiative aimed to challenge business leaders and innovators to transcend current horizons has been introduced by Stanbic IBTC Bank through a thematic campaign known as There is Possible, Then There is More.

The idea is to a mindset of amplified possibility, sustained growth, and transformative partnerships, with Stanbic IBTC Bank positioned as a pivotal enabler.

With this campaign, Stanbic IBTC Bank is positioning itself as a trusted ally for Nigerian CEOs who want to do more, become more, and achieve more.

The Executive Director for Business and Commercial Banking at Stanbic IBTC Bank, Mr Remy Osuagwu, said, “As a bank, our mission is to not only meet the financing needs of Nigerian CEOs, but to inspire them to reach for more.

“We understand the challenges they face and the aspirations they hold, and we are equipped to support their ambitions, and extend them even further thereby, helping them to achieve exponential growth.”

He emphasised that, “This campaign is evidence of our commitment to being more than just a bank; we want to be the partner that propels our customers beyond their goals.

“We empower our clients with the tools and resources necessary for success by fostering collaboration and mutual growth and this proactive approach underscores our commitment to supporting business leaders and inspiring them to dream bigger and achieve greater heights in their respective industries.”

Business Post reports that the campaign officially debuted with a striking teaser, with An Open Letter to All CEOs on key digital platforms, digital out-of-home screens, and social media feeds. For days, the public speculated. This week, the letter was finally revealed—and with it, a most human and resonant message.

The Open Letter to CEOs is more than just an advertising creative campaign; it is a genuine call to action.

In it, Stanbic IBTC Bank acknowledges the resilience and achievements of Nigerian business owners even in the face of adversity. But it also dares to ask: What more could be achieved with the right support, partnership, and financial foresight?

Overall, Stanbic IBTC Bank’s vision reflects a deep understanding of the crucial role that financial institutions play in the broader economic ecosystem—one where banks serve as catalysts for growth and achievement.

From trade financing to investment advice, capacity development to transactional banking, Stanbic IBTC Bank offers a suite of solutions designed specifically to meet the evolving needs of today’s CEOs — from start-ups and SMEs to established corporations and multinationals.