Fitch Ratings confirms Stanbic IBTC financial strength, stability
The creditworthiness of Stanbic IBTC Holdings and its subsidiaries has been affirmed by a global rating agency, Fitch Ratings.
The National Long-Term Ratings of the leading end-to-end financial institution in Nigeria has been affirmed at ‘AAA (nga)’ with a Stable Outlook, underscoring its resilience in a challenging operating environment.
The rating affirmation from Fitch Ratings provides confidence in Stanbic IBTC’s financial strength, resilience, and ability to weather the challenges in the Nigerian banking industry.
It highlights the unwavering support of its ultimate parent, Standard Bank Group, and solidifies Stanbic IBTC’s position as a leading player in the Nigerian financial market.
Despite the risks associated with the exchange rate disparity, the agency acknowledges Stanbic IBTC’s leading position as a domestic universal bank in Nigeria, comprising a significant portion of the bank’s consolidated assets.
Stanbic IBTC’s sound asset quality is evident in its impaired loans ratio, which stood at 2.5 per cent at the end of the first quarter of 2023, with total reserves coverage of bad loans at a robust 121 per cent.
The institution has demonstrated strong and consistent profitability, with an operating profit-to-risk-weighted assets ratio of 7.7 per cent in the first quarter of 2023, driven by a wider net interest margin and trading gains.
Its solid capitalisation, reflected in a CET1 ratio of 18.4 per cent, provides a substantial buffer over regulatory requirements under Basel III.
“We are delighted with Fitch Ratings’ affirmation of our ‘AAA(nga)’ ratings, which underscores our financial strength and stability in the Nigerian market.
“This rating affirms our commitment to maintaining a solid capital base, sound asset quality, and profitability. It also reinforces our stakeholders’ confidence in our ability to navigate challenging operating conditions.” The chief executive of Stanbic IBTC Holdings, Mr Demola Sogunle, said.
On his part, the chief executive of Stanbic IBTC Bank, Mr Wole Adeniyi, said, “Our diversified business model, sustained growth in net fees and commissions, and prudent risk management practices will continue to drive our profitability and solidify our position as a leading financial institution in Nigeria.”
