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Stanbic IBTC Grows Profit by 59% in Nine Months

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Stanbic IBTC Yinka Sanni Euromoney Awards

By Dipo Olowookere

A member of Standard Bank Group, Stanbic IBTC Holdings Plc, has announced its nine months unaudited group results for the period ended September 30, 2018.

In the financial statements released by the firm, it reported a profit after tax of N59.76 billion, representing an increase of 59 percent for the corresponding period in 2017.

This was as the profit before tax jumped by 54 percent to N70.38 billion from N45.65 billion exactly 12 months ago.

Highlights of the results showed that the gross earnings rose by 9 percent to N168.80 billion from N154.22 billion in the corresponding period of last year, while the net interest income went down to N58.44 billion from N62.95 billion.

However, the non-interest revenue went up by 24 percent to N79.97 billion from N64.28 billion, with the total income increasing to N138.42 billion from N127.23 billion.

For the cost to income ratio, it increased to 52.1 percent from 48.1 percent, while the annualised return on average equity grew by 39.0 percent, with the annualised return on average assets improving by 5.5 percent.

A look at the balance sheet showed that the total assets went up by 11 percent to N1.54 trillion from N1.39 trillion recorded in December 2017.

Also, the gross loans & advances to customers increased by 14 percent to N462.32 billion versus N403.85 billion in December 2017, while the non-performing loans decreased by 39 percent to N21.6 billion from N35.3 billion in December 2017.

The company also said the non-performing loans to total loans ratio dropped to 4.7 percent from 8.6 percent in December 2017, while the customer deposits slightly went down by 2 percent to N738.36 billion from N753.64 billion in December 2017, with the deposit mix improving to 57.0 percent from 49.2 percent in December 2017.

The company disclosed that its capital adequacy levels are significantly above the regulatory limit of 10 percent.

The Group’s total capital adequacy ratio closed the period at 24.5 percent (Bank: 21.4 percent) and Tier 1 capital adequacy ratio of 20.7 percent (Bank: 17.2 percent).

“We remain well positioned and sufficiently capitalized to support future growth ambitions. The Group’s liquidity ratio closed at 90.3 percent, while the bank’s liquidity ratio was at 77.7 percent at the end of September 2018. This ratio is significantly higher than the 30 percent regulatory minimum,” the firm said.

Speaking on the Group’s performance, Chief Executive of Stanbic IBTC Holdings, Mr Yinka Sanni, said, “Our business continued to thrive in the third quarter of 2018 amid industry-wide headwinds, bearish capital market aided by emerging market sell-off and attendant repatriation of foreign capital. Our performance shows steady growth in our balance sheet position, sustained improvement in revenue from fees and commissions and trading lines, though at a slower pace against a backdrop of reduced financial market volumes / trades and reduction in fee income rate particularly for our Wealth business due to the implementation of the multi-fund structure. Nonetheless, we have seen significant improvement in our risk asset portfolio with gross loans and advances up by 14% year-to-date while non-performing loans (“NPL”) portfolio decreased by 39%, thereby improving our NPL ratio to 4.7% from 8.6% in December 2017.

“The decrease in non-performing loans is on account of the declassification of some loans following positive outcome on recovery and rehabilitation efforts. This is coupled with strategic decision to write-off some delinquent loans. The 2% decrease in total customer deposits is due to the competitive yield environment and continued drive to reduce cost of funds which resulted in a 25% decrease in expensive term deposits”.

“We are focused on delivering end-to-end financial solutions to our customers through our enhanced digital platforms as significant investment is being made to achieve this stride. Volume of transactions carried out on our digital platform continues to increase and we are encouraged by the robust transactional volumes from the various platforms. The drop in our net interest income is due to lower yield on government securities compared to the same period in 2017 but the sustained growth in loans and advances will douse the impact on net interest income line in the near term. We remain on track to achieve our guidance by the end of the year. Our focus for the rest of the year is to maintain the momentum in improving the quality of the asset book and to further grow our non-interest revenue line.”

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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Banking

UBA, NiDCOM to Unlock Diaspora Capital for Nigeria’s Growth

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UBA NiDCOM Unlock Diaspora Capital

By Modupe Gbadeyanka

A partnership aimed to unlock diaspora capital for Nigeria’s growth has been deepened by the United Bank for Africa (UBA) Plc and the Nigerians in Diaspora Commission (NiDCOM).

The chief executive of UBA, Mr Oliver Alawuba, underscored the diaspora’s critical role as a powerful economic force and a generation of builders shaping new narratives for the continent.

He also reiterated the financial institution’s readiness to leverage its global network and innovative financial solutions to support diaspora engagement, urging Nigerians abroad to tap into opportunities within Africa’s economic landscape.

“You are not limited here; you have opportunities on the continent, and we want you to make good use of them. That is where banking, and we at UBA, become the connecting point that you need to access the opportunities back home.

“Whether you like it or not, the returns are high in Africa, and we are here to help you navigate that space,” the UBA chief said on Monday when he hosted key representatives of NiDCOM led by its chairman, Mrs Abike Dabiri, at the bank’s office in the United Kingdom.

UBA recently launched a Diaspora Banking platform to provide a seamless, integrated platform for Africans in the diaspora to bank, invest, and manage their financial obligations back home, thus connecting global Africans with investment and wealth opportunities.

The lender introduced the platform, with leading ecosystem partners representing a major step in redefining diaspora banking beyond remittances toward structured wealth creation and long-term investment.

“With UBA, you have a financial partner that is with you, that understands what you are going through, and that can support you to make sure you realise your aspirations, both here and in the country,” Mr Alawuba noted.

In her remarks, Mrs Dabiri-Erewa praised UBA for being a trusted financial partner over the years, especially with the recent launch of its diaspora platform.

“Many of you here are the real game-changers. “For years, it has been wonderful engaging Nigerians all over the world. When I started, it felt like we only heard the bad stories, not the good ones. What we have tried to do internationally is to tell and celebrate the good stories. We have Nigerians doing well all over the world, and they are in this room. We must continue to celebrate you,” she stated.

While remarking that the meeting demonstrates a significant step in aligning public and private sector efforts to deepen diaspora inclusion and accelerate Nigeria’s development agenda, she pledged closer collaboration in driving policies and initiatives that encourage Nigerians abroad to actively participate in the country’s economic growth.

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Ecobank’s Enhanced Ellevate Initiative Excites Women Entrepreneurs

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Ellevate by Ecobank

By Modupe Gbadeyanka

The launch of the Enhanced Ecobank Ellevate Proposition (Ellevate 2.0) in Lagos has been welcomed by women entrepreneurs.

Ecobank Nigeria, a subsidiary of the pan‑African financial services group Ecobank Group, unveiled the upgraded programme at an event themed Her Voice. Her Power. Her Growth. The initiative was designed to support women‑owned businesses.

The gathering featured inspiring conversations and practical insights from accomplished women in business and professional leadership.

In her keynote address titled The True Woman Power: Strength Rooted in Identity, Resilience and Purpose, the founder of Gatimo Limited and Creative Director of Ruff ‘n’ Tumble, Mrs Adenike Ogunlesi, praised Ecobank for its longstanding support for women entrepreneurs.

“When I was seeking a loan facility many years ago to grow my business, Ecobank was the institution that supported me when others turned me down,” she shared, encouraging women to embrace self-awareness, resilience, and purpose as the drivers of long‑term success.

The panel session featured the chief executive of Strata Advisory, Ms Bode Abifarin; the chief executive of Village Farms Commerce and Exchange, Ms Titilayo Adesoga; and the founder of Beaty Hut Africa, Ms Subuola Oyeleye, who each shared powerful reflections from their personal and professional journeys.

Drawing from her extensive leadership background, Ms Abifarin highlighted the need for women to own their transitions and step confidently into new seasons.

On her part, Ms Adesoga encouraged women to rise above limitations by taking ownership of their personal and business narratives, as Ms Oyeleye highlighted the importance of authenticity, innovation, and investing in quality, reinforcing that women can build globally competitive businesses from Nigeria.

In her welcome speech, the Head of Premier Banking and Wealth Management at Ecobank Nigeria, Ms Ayo Osolake, who represented the Managing Director/Regional Executive, Mr Bolaji Lawal, said, “Ellevate by Ecobank reflects our unwavering commitment to supporting women entrepreneurs, who remain key drivers of economic growth, innovation, and job creation.”

Ellevate Manager for Ecobank Nigeria, Ms Victoria Igun, said, “This enhanced proposition creates stronger pathways for women entrepreneurs and professionals to build sustainable businesses and translate ambition into lasting impact.”

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Zenith Bank Plans London Stock Exchange Listing in 2027

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Zenith Bank 2025 AGM

By Adedapo Adesanya 

Nigerian tier-1 lender, Zenith Bank Plc, plans to list on the London Stock Exchange in 2027 to broaden access to capital and strengthen client services.

“There are a lot of deals we have on the table to finance across the United Kingdom and other countries, for which we need to raise more capital,” a bank official said on Tuesday, as per Bloomberg, since Zenith didn’t disclose additional details of its plan.

The move will make Zenith Bank the second Nigerian lender to list on the United Kingdom’s major exchange, following Guaranty Trust Holding Company (GTCO) Plc.

Zenith Bank, which is Nigeria’s second-largest lender by market value, has opened a branch in Manchester today in addition to the operation it already has in London.

The Manchester branch has the capacity to create up to 30 new direct jobs, a boost for the economy of the UK’s North West region.

The chief executive of Zenith Bank, Ms Adaora Umeoji, said, “The United Kingdom remains a key global financial centre. The opening of Zenith Bank, Manchester, therefore, marks another important milestone in our international expansion strategy, enabling us to deepen relationships with our customers, support trade and investments, and connect businesses between Africa and the UK more effectively.”

Last year, the bank raised its capital above the N500 billion minimum requirement set by the Central Bank of Nigeria (CBN), and announced plans to expand in francophone West Africa.

Founded in 1990 by Mr Jim Ovia, Zenith Bank has grown into one of Africa’s most respected banking institutions, boasting a robust capital base and a remarkable history of year-on-year profitability.

Headquartered in Lagos, Nigeria, Zenith Bank operates over 500 branches and business offices across the 36 States of the Federation and the Federal Capital Territory (FCT).

The bank currently operates subsidiaries in several African countries, including Ghana, Sierra Leone, Gambia, and Cote d’Ivoire, while maintaining a presence in major international financial centres, including the United Kingdom, France, the UAE and China.

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