Business Continuity: Stanbic IBTC conducts stress tests, says group in comfortable position
Stanbic IBTC Holdings Plc said the results of its stress tests on the impact of COVID-19 on business and foreign currency volatility shows that its capital, liquidity position is above regulator’s limits.
The group stated this as it addressed stakeholders on the impact of the pandemic on its operation in the business management continuity plan submitted to the Nigerian Stock Exchange.
Banks are expected to maintain a liquidity ratio of 30% and expected to hold minimum of ₦50 billion for international banking license.
Stanbic Holdings explained that its banking arm is excluded from Fitch’s Rating Watch Negative list of Nigerian banks.
MarketForces reported that the requirement for business continuity plan which is now in demand by regulators is for companies to assess impacts of the coronavirus on the business.
Stanbic said: “We wish to emphasize that stress tests were conducted to measure the impact of the pandemic as well as foreign currency volatility on the Group.
“Our results show that our capital and liquidity positions remain well above regulatory limits”.
The management assured stakeholders of long-term stability of the Group, notwithstanding the impact of the COVID-19 pandemic across the Country.
Following the lockdown, group said it has implemented a number of measures in order to ensure that its business operations remain stable.
It explained that from a business continuity perspective, it has continued to leverage technology to enhance how customers carry out their daily transactions uninhibited.
The group stated that as a responsible corporate citizen and in keeping with global health protocols on social distancing, it had activated remote working for the majority of its workforce, ahead of the current restriction of movement.
“We shall continue to monitor developments closely as they unfold, guided by our commitment to ensure the continued sustainability of the Stanbic IBTC Group.
“As well as delivering long term value to our shareholders. This is being reviewed on an ongoing basis, the group stated”, it said.
The Holdings recall that Fitch, a globally-renowned credit rating agency, recently retained the National Long term Ratings of ‘AAA(nga)’ and ‘F1+(nga)’ of Stanbic IBTC and its banking subsidiary, Stanbic IBTC Bank PLC.
It said Stanbic IBTC Bank Plc is excluded from Fitch’s Rating Watch Negative list of Nigerian banks, even in the midst of the coronavirus pandemic’s impact on businesses.
The group said the Fitch ‘AAA(nga)’ rating, signifies the highest score in its National Rating scale for Nigeria and it is given to issuers with the lowest expectations of default risk, compared to other issuers.
Furthermore, issuers or obligations that have the strongest capacity for timely payment of financial commitments relative to other issuers in the same country are rated F1+(nga).
“We remain hopeful that our country is on the path to recovery; and encourage you to please stay safe by avoiding unnecessary social contacts, ensuring continuous washing of hands and adhering to other basic rules of personal hygiene”, the group pleaded.
Business Continuity: Stanbic IBTC conducts stress tests, says group in comfortable position.