Stanbic IBTC Holdings (Stanbic IBTC), a Lagos-based financial services holding company tied to Nigerian billionaire and investment banker Atedo Peterside, achieved strong financial performance for the fiscal year 2023, topping $100 million in profit.
The group’s profit increased by 74% year on year to N140.62 billion ($108.9 million), boosted by rising domestic interest rates and positive foreign exchange movements. This surpasses the N80.81 billion ($62.5 million) profit generated in 2022, cementing Stanbic IBTC’s position as a powerhouse in Nigeria’s banking sector.
Interest income increased dramatically, rising from N152.7 billion ($118.07 million) in the previous year to N270.6 billion ($209.22 million), a stunning 77% rise. Fees and commissions revenue increased by 21 percent to N110.3 billion ($85.25 million), up from N91.1 billion ($70.41 million) in 2022.
Stanbic IBTC, a significant Nigerian financial services business with total assets of more than $4 billion as of December 31, 2023, is one of the top 17 most capitalized corporations on the Nigerian Exchange. The market capitalization is at N700 billion ($541.75 million).
Stanbic IBTC was founded in 1989 as an investment bank, with Atedo N.A. Peterside serving as its first CEO. Peterside, a significant person in Nigerian banking and the creator of Anap Business Jets and the Atedo N.A. Peterside Foundation, owns a 1.14 percent holding in Stanbic IBTC, or 133,611,115 ordinary shares.
The bank’s strong 2023 performance saw total assets increase to N5.146 trillion ($4.1 billion) from N3.029 trillion ($2.43 billion) on December 31, 2022. This 70% growth was fueled by a 69 percent increase in loans and a 108 percent increase in cash reserves.
As a result of the group’s strong financial performance, the board of directors suggested a dividend of N2.20 ($0.001712) per share, totaling N28.5 billion ($22.12 million), to be paid from retained earnings.
The dividend demonstrates the bank’s commitment to shareholder value and complies with CBN requirements. Stanbic IBTC’s exceptional 2023 performance demonstrates its resilience, creativity, and ongoing commitment to excellence in Nigeria’s banking sector. The bank is positioned as a leader, creating long-term growth and success in the ever-changing financial landscape.
Stanbic IBTC intends to increase its capital base from N109.3 billion ($84.53 million) to N200 billion ($154.61 million) in response to the Central Bank of Nigeria’s (CBN) revised capital requirements for banks in its category.
