Economy
Stanbic IBTC Sustains Strong, Diversified Funding Base in Q1 2021
By Dipo Olowookere
Despite the unfriendly business environment caused by the COVID-19 pandemic, Stanbic IBTC Holdings Plc has continued to stay strong as a result of the futuristic strategies put in place by the board and management.
In the first quarter of 2021, the financial group maintained an adequate level of capital, with the total capital adequacy ratio closing at 22.7 per cent, significantly higher than the 10 per cent minimum requirement of the Central Bank of Nigeria (CBN), the industry’s regulatory agency.
Also, its liquidity ratio was above the regulatory minimum requirement of 30 per cent, signifying Stanbic IBTC’s sound position to continue meeting its liquidity obligations in a timely manner.
In the period under review, the total assets increased by 3 per cent to N2.569 trillion from N2.486 trillion in the full year of 2020, while the customer deposits rose by 6 per cent to N867.0 billion in Q1 2021 from N819.9 billion in FY 2020, with the gross loans and advances up 16 per cent to N762.7 billion from N655.3 billion in December 2020 and the non-performing loans (NPLs) jumping by 3 per cent to N27.2 billion from N26.5 billion as of December 31, 2020.
Sadly, the gross earnings reduced by 26 per cent to N45.7 billion from N61.4 billion in the first quarter of last year just as the net interest income decreased by 14 per cent to N15.9 billion from N18.5 billion, with the non-interest revenue down by 29 per cent to N23.1 billion N32.6 billion in the same period of 2020 and the total operating income down by 24 per cent to N38.9 billion from N51.2 billion.
Further, the profit before tax reduced by 50 per cent to N12.1 billion from N24.4 billion, while the profit after tax went down by 45 per cent to N11.3 billion from N20.6 billion, with the cost to income ratio at 69.2 per cent as against 48.4 per cent in Q1 of 2020 and the annualised return on average equity at 11.6 per cent.
The CEO of Stanbic IBCT, Mr Demola Sogunle, while commenting on the results, blamed the decline in the company’s profitability on pressure on trading income as trading activities slowed down while rising operating expenses from regulatory induced charges did not help matters amid continued pressure on risk asset yields.
However, he emphasised that the decline was partly cushioned by the year-on-year improvement in net fee and commission revenue as well as an impairment write-back of N155 million in Q1 2021 compared to the charge of N1.97 billion in the prior year.
He explained that the impairment write-back was due to releases and after write-off recoveries achieved during the quarter.
“Again, the diversity of our earnings proved supportive during the period. Wealth’s profitability improved from the prior period and provided succour for the contraction in the profitability of the Corporate and Investment Banking and the Personal and Business Banking businesses,” he disclosed.
Mr Sogunle expressed optimism that the company will achieve “our full-year 2021 guidance,” especially with the commencement of the firm’s latest addition, Stanbic IBTC Insurance Limited, in the first quarter of the year.
By Adedapo Adesanya
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, has called on state-owned enterprises to increase standards of transparency, ethics, and performance as Nigeria pushes to build a $1 trillion economy.
Speaking at the MOFI Corporate Governance Forum in Abuja, the Minister described the newly introduced MOFI Scorecard as a vital benchmark for institutional health, designed to position state-owned enterprises for investment, growth, and long-term value creation.
According to Mr Edun, this scorecard is not just a document; it’s a test, adding that strong governance attracts capital, builds trust, and delivers real economic returns.
The two-day forum, themed Ensuring Value Creation in State-Owned Enterprises Through Better Corporate Governance, brought together CEOs, regulators, and development partners to examine how better oversight can unlock Nigeria’s public asset potential.
Referencing entities like NNPC Limited, Mr Edun noted that state-owned enterprises must be investor-ready as the government shifts from debt-heavy budgets to equity-based growth.
He also pointed to positive macro signals and falling food and fuel prices as early signs of a stabilising economy.
On his part, MOFI Chairman, Mr Shamsudeen Usman, confirmed that the scorecard will be enforced through independent assessments, including MOFI itself.
“We are not asking others to do what we haven’t already done,” he said.
Backed by the World Bank, the initiative marks a shift in how Nigeria manages public wealth, with governance now central to growth, resilience, and investor confidence.
The introduction of the governance scorecard is a testament to the Federal Government’s commitment to transforming Nigeria’s economy. As the country moves forward, one thing is clear: transparency, accountability, and growth will be the guiding principles for state-owned enterprises.
By Adedapo Adesanya
The market capitalisation of the NASD Over-the-Counter (OTC) Securities Exchange rose by 1.70 per cent or N32.36 billion on Thursday, April 10, closing at N1.925 trillion, in contrast to the N1.892 trillion quoted at the preceding session.
However, the NASD Unlisted Security Index (NSI) went up by 10.46 points or 0.32 per cent to 3,287.85 points from the 3,277.39 points it ended a day earlier.
The market capitalisation was higher yesterday after admitting additional shares of Infrastructure Credit Guarantee Company Plc (InfraCredit) to the platform after regulatory approval. The firm joined the NASD Exchange on March 6.
The company, backed by the Nigerian sovereign wealth fund, added 11.166 million units to bring its volume to 26.421 million.
At the trading session, FrieslandCampina Wamco Nigeria Plc gained N1.91 to close at N38.50 per unit versus N36.59 per unit, Mixta Real Estate Plc rose by 41 Kobo to N4.55 per share from the previous closing value of N4.14 per share, Lagos Building Infrastructure Company (LBIC) Plc grew by 17 Kobo to N2.63 per unit from N2.80 per unit, and Paintcom Investment Plc improved by 2 Kobo to N10.74 per share from N10.72 per share, while Geo-Fluids Plc declined by 22 Kobo to N2.00 per unit from N2.22 per unit.
The volume of transactions surged by 9,665.9 per cent to 18.1 million units from 185,449 units, the value of transactions soared by 7,174.3 per cent to N192.9 million from N192.9 million, and the number of deals rose by 81.8 per cent to 20 deals from 11 deals.
Impresit Bakolori Plc ended the day as the most active stock by volume (year-to-date) for trading 533.9 million units worth N520.9 million, trailed by Industrial and General Insurance (IGI) Plc with 71.2 million units valued at N24.2 million, and Geo Fluids Plc with 44.6 million units sold for N90.2 million.
FrieslandCampina Wamco Nigeria Plc also remained as the most active stock by value (year-to-date) with 14.5 million units valued at N559.2 million, followed by Impresit Bakolori Plc with 533.9 million units worth N520.9 million, and Afriland Properties Plc with 17.8 million units sold for N365.0 million.
By Adedapo Adesanya
The Naira witnessed a depreciation of 1.05 per cent or N16.97 against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Thursday, April 10, exchanging at N1,629.94/$1 compared with the previous day’s rate of N1,612.99/$1.
In the same official market, the Nigerian currency, however, traded flat against the Pound Sterling and the Euro during the session at N2,085.01/£1 and N1,805.64/€1, respectively.
As for the black market, the domestic currency depreciated against the greenback yesterday by N5 to sell for N1,620/$1, in contrast to the N1,615/$1 it was exchanged at midweek.
The Naira had stabilise on Wednesday in the spot market after President Donald Trump of the United States announced a 90-day pause on tariffs for more than 75 nations, including Nigeria, that did not retaliate to his sweeping duties announced a week ago.
However, China, which recently placed steeped retaliatory tariffs on US goods, did not get any relief, as Mr Trump hiked the total levy on Chinese goods to 125 per cent.
Market analysts raise worries about a secondary effect of a trade war between the US and China, and how it can have effected on other nations’ economies.
Even as the Central Bank of Nigeria (CBN) continued to prop up the local currency, in the last week, the Naira has exchanged between the N1,570 and N1,620 mark.
Meanwhile, the cryptocurrency market was mixed on Thursday after exchange-traded funds (ETFs) saw outflows even as prices surged after President Trump announced a 90-day pause in tariffs on most countries, excluding China.
The dwindling demand can be attributed to the macroeconomic uncertainty caused by the US-China trade tensions that has led to macro investors selling every asset, including crypto ETFs, for cash.
Litecoin (LTC) gained 1.9 per cent to trade at $75.88, Cardano (ADA) jumped by 1.4 per cent to $0.6321, Dogecoin (DOGE) appreciated by 0.3 per cent to $0.1575, and Solana (SOL) rose by 0.2 per cent to $116.94.
On the flip side, Ethereum (ETH) dropped 3.6 per cent to settle at $1,533.42, Bitcoin (BTC) shed 1.2 per cent to end at $81,017.23, Ripple (XRP) slumped by 0.2 per cent to $1.99, and Binance Coin (BNB) went south by 0.1 per cent to $579.45, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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