Stanbic IBTC Holdings (Stanbic IBTC), a Lagos-based financial services holding company linked to Nigerian businessman and investment banker Atedo Peterside, reported robust financial results for the 2023 fiscal year, exceeding $100 million in profit.
Buoyed by rising domestic interest rates and favorable foreign exchange movements, the group’s profit surged 74 percent year-on-year to N140.62 billion ($108.9 million). This eclipses the N80.81 billion ($62.5 million) profit recorded in 2022, solidifying Stanbic IBTC’s position as a powerhouse in the Nigerian banking sector.
Interest income grew significantly, climbing from N152.7 billion ($118.07 million) in the prior year to N270.6 billion ($209.22 million), a remarkable 77-percent increase. Income from fees and commissions also jumped, rising 21 percent to N110.3 billion ($85.25 million) from N91.1 billion ($70.41 million) in 2022.
Peterside’s backing and Stanbic IBTC’s financial growth
Stanbic IBTC, a leading Nigerian financial services group with total assets of over $4 billion as of Dec. 31, 2023, ranks among the top 17 most-capitalized companies on the Nigerian Exchange. Market capitalization stands at N700 billion ($541.75 million).
Founded in 1989 as an investment bank, Stanbic IBTC had Atedo N.A. Peterside as its first CEO. Peterside, a prominent figure in Nigerian banking and founder of Anap Business Jets and the Atedo N.A. Peterside Foundation, retains a 1.14-percent stake in Stanbic IBTC, representing 133,611,115 ordinary shares.
The bank’s robust 2023 performance saw total assets surge to N5.146 trillion ($4.1 billion) from N3.029 trillion ($2.43 billion) on Dec. 31, 2022. This 70-percent increase was driven by a 69-percent rise in loans and a 108-percent jump in cash reserves.
Stanbic IBTC proposes dividend payout
As a result of its impressive financial performance, the group’s board of directors proposed a dividend of N2.20 ($0.001712) per share, totaling N28.5 billion ($22.12 million), to be distributed from retained earnings.
The dividend reflects the bank’s commitment to shareholder value and complies with CBN regulations. Stanbic IBTC’s stellar 2023 performance underscores its resilience, innovation, and unwavering pursuit of excellence in Nigeria’s banking sector. The bank is positioned as a trailblazer, driving sustainable growth and success in the dynamic financial landscape.
In response to new capital requirements set by the Central Bank of Nigeria (CBN), Stanbic IBTC aims to bolster its capital base from the current N109.3 billion ($84.53 million) to N200 billion ($154.61 million), as required for banks within its category.
