GCR Affirms Stanbic IBTC Bank AAA/ A1+ Ratings, Outlook Stable
GCR Ratings (GCR) has affirmed Stanbic IBTC Bank Limited’s (Stanbic IBTC Bank or the bank) national scale long and short-term issuer ratings of AAA(NG) and A1+(NG), respectively, with a stable outlook.
According to its latest rating action, GCR said Stanbic IBTC Bank’s ratings continue to reflect the strengths and weaknesses of Stanbic IBTC Holdings Plc, given the bank’s position as the core operating entity within the group, accounting for 96.3% and 79.1% of total assets and revenue, respectively, as of 31 December 2025.
While the ratings have been assigned exclusively to Stanbic IBTC Bank, the analytical assessments are based on the broader business and financial profile of the group, GCR said.
Ratings analysts said the overall ratings benefit from a sound competitive position, good asset quality, a stable funding structure, an adequate liquidity position and improved capitalisation.
The ratings are also bolstered by the robust financial and technical support from the ultimate parent, Standard Bank Group, one of the largest banking groups in Africa by balance sheet size and earnings.
Stanbic IBTC Holdings is one of the largest financial services groups in Nigeria, with a strong presence across major segments including commercial banking, investment banking, asset management, pension management, custodian services, insurance, fintech and stockbroking.
Specifically, Stanbic IBTC Bank is one of top tier two banks in Nigeria, and has maintained a strong growth trajectory, with the total assets increasing by 24.0% to NGN8.3 trillion (USD5.8 billion) as of 31 December 2025, representing c.4% market share.
The group also maintains strong portfolio of non-bank subsidiaries, including the largest pension and non-pension fund managers in Nigeria. This continues to support earnings and product diversification as well as cross-selling opportunities across the franchise.
Operating revenue and profitability remain robust, underpinned by stable earnings contribution from both banking and non-bank operations as well as ongoing operating efficiency initiatives.
As a result, the group’s return on average equity (ROAE) and return on adjusted assets (ROAA) remain strong at 44.8% and 3.6% respectively as of 31 December 2025, (31 December 2024: 40.9% and 2.5% respectively) and compare favourably with peers.
Capitalisation improved during the review period, driven by good earnings retention and additional equity injection to fully comply with the new capital requirement.
As such, the GCR core capital ratio strengthened to 16.9% in December 2025 (December 2024: 14.7%) and further improved to 22.8% as of 31 March 2026, driven by a reduction in risk-weighted assets. Additionally, the bank’s regulatory capital adequacy ratio has been consistently maintained above the regulatory minimum of 10% for its licence category.
Looking ahead, rating analysts said they expect the GCR core capital ratio to remain around 18.0% – 20.0% over the next 12-18 months, underpinned by sustained earnings retention and cautious loan book growth.
Stanbic IBTC Bank’s risk position remains stable, with asset quality metrics that are better than industry average. As of 31 March 2026, non-performing loans (NPL) and credit losses ratios registered at 3.1% and 0.5%, respectively, below the industry average of c.8% and 3.5%.
Furthermore, loan loss reserve coverage of Stage 3 loans has averaged 115.2% over the past five years and this implies that future earnings is protected from unexpected losses that could stem from low provisioning.
However, obligor concentration remains high, with the top twenty obligors accounting for 45.6% of gross loans in December 2025, up from 44.3% in 2024.
Foreign currency (FCY) loans to gross loans registered at 40.1% in December 2025, an increase from 37.0% in 2024 and this remains within the bank’s internal limit. Looking ahead, we expect asset quality metrics to remain at similar levels.
The group’s funding and liquidity is positive to the ratings, underpinned by a stable funding base and a liquid balance sheet. The group is largely funded by customer deposits, which have averaged 60.0% of the funding base for the past five years (2021-2025).
As of March 2026, customer deposits declined by 6.4% to NGN4.1 trillion, driven by deliberate efforts to reduce reliance on expensive deposits in order to support lower funding costs.
Consequently, the proportion of current and savings accounts (CASA) deposits to deposits pool increased to 71.5% as of 31 March 2026 from 62.6% in 2025 while the cost of funds was lower at 3.7% from 4.4%.
With GCR liquid assets coverage of customer deposits and wholesale funding improving to 75.5% and 6.4x, respectively as of 31 March 2026, rating analysts affirmed Stanbic IBTC liqudity remains sound.
“We expect the funding and liquidity to remain strong over the next 12-18 months”.
Stanbic IBTC Bank’s national scale Issuer ratings benefit from parental support. Although the group contributes less than 10% to Standard Bank Group’s assets and revenue, there is evidence of support from and assimilation with the parent. We believe Standard Bank Group has the capacity to support the group and bank.
The stable outlook reflects the expectation that the group’s financial profile will remain sound, with asset quality metrics contained and below the industry average.
“We expect the GCR core capital ratio to range between 18.0% – 20.0%”, GCR said. It added that funding and liquidity position is expected to remain stable, predicated on the good deposit mobilisation capacity as well as other funding options. Fitch Affirms Guaranty Trust Holding Company at ‘B’; Outlook Stable
