Fitch Affirms Stanbic IBTC Holdings at ‘AAA (nga)’, Outlook Stable
Fitch Ratings has affirmed Stanbic IBTC Holdings PLC’s and Stanbic IBTC Bank Ltd.’s – its banking subsidiary – National Long-Term Ratings at ‘AAA(nga)’ with stable outlooks.
The National Ratings of Stanbic IBTC and Stanbic IBTC Bank are driven by potential support from their ultimate parent, South Africa-based Standard Bank Group Limited, according to today’s rating note.
Standard Bank Group Limited has a 68.46% shareholding in Stanbic IBTC, which, in turn, has a 99.9% shareholding in Stanbic IBTC Bank.
Fitch believes that SBG has a strong propensity to support Stanbic IBTC and Stanbic IBTC Bank, reflecting their leading corporate and investment banking (CIB) and insurance and asset management businesses in Nigeria, and their importance to SBG’s pan-African strategy.
“This is in addition to SBG’s controlling ownership, strong integration and shared branding. However, SBG’s ability to provide support is constrained by Nigerian country risk”.
Stanbic IBTC is a non-operating bank holding company; its standalone creditworthiness is aligned with that of the group, derived from Fitch’s consolidated risk assessment of the group, due to the absence of common equity double leverage, and high fungibility of capital and liquidity.
Stanbic IBTC Bank accounted for 96% of Stanbic IBTC’s total assets at end-2025, and therefore, its standalone creditworthiness aligns with Stanbic IBTC’s consolidated risk profile.
Fitch said the Nigerian naira has stabilised, the banking sector’s underlying profitability and foreign-currency (FC) liquidity have improved, and capital raisings have boosted Nigerian banks’ capitalisation.
However, inflation remains high, regulatory intervention is burdensome, and the expiry of forbearance has increased impaired loans ratios and prudential provisions.
Stanbic IBTC Bank has a moderate market share 4% of domestic banking system assets in 2025 but a strong franchise through its CIB and investment and asset management businesses.
Client relationships are fostered by being part of a large pan-African banking group. Revenue diversification is reasonable, with non-interest income accounting for 49% of operating income in 1Q26 from 34% in 2025.
Fitch said Nigerian sovereign exposure through securities and cash reserves at the central bank is large relative to common equity Tier 1 (CET1) capital settling at 3.7x in Q1 2026, oil and gas exposure is material, accounting for 31% of gross loans in 2025, and increasing and single-obligor credit concentration is also high.
The impaired loans ratio decreased to 3.1% in Q1 2026 from 3.4% in 2025, which is low by both domestic and international standards. Specific loan loss allowance coverage of impaired loans was 71%. Fitch expects the impaired loans ratio to decline slightly by the end of 2026.
Operating profits averaged 6.7% of risk-weighted assets (RWAs) over 2022-2025 (2025: 8.5%) and reached a record 12.8% (annualised) in 1Q26, supported by very high interest revenue stemming from high interest rates and a fast-growing deposit base, high non-interest income and low loan impairment charges.
Fitch expects profitability metrics to be maintained in 2026, supported by high interest rates. Stanbic IBTC’s CET1 ratio improved to 18.7% in Q1 2026 after a NGN147 billion rights issue in 2025 to comply with new paid-in capital requirements due at end-1Q26.
“We expect the CET1 ratio to decline in 2026, but to remain well above 10%”, Fitch said.
Stanbic IBTC’s gross loans/customer deposits ratio fell sharply to 63% at the end of 1Q 20226 from 100% in 2023, as annual deposit growth of 45% outpaced loan growth of 10% in both 2024 and 2025 and is now in line with peers. Liquidity coverage is comfortable in local currency and FC, Fitch said.
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