Stanbic IBTC Bank retains its AAA national Fitch ratings
Stanbic IBTC Bank Plc and its holding company, Stanbic IBTC Holdings Plc, have retained their AAA national ratings by Fitch Ratings, the global leader in credit ratings.
The rating reaffirmed their strong fundamentals and stability, especially the ability to meet their financial commitments as they fall due.
The two institutions recorded AAA (nga) national long-term rating, which provides a relative measure of credit worthiness for rated institutions in Nigeria. The AAA national rating is assigned to an institution with the lowest relative risk.
In arriving at the rating for Stanbic IBTC, Fitch took account of the strong parental support from Standard Bank Group, to which Stanbic IBTC Holdings PLC belongs, as the group provides support in such areas as staff training, provision of information technology upgrades and best practice processes as well as strong corporate governance practices.
“Stanbic IBTC Holdings PLC’s (SIBTCH) National Ratings are based on potential support from its parent, South Africa’s Standard Bank Group Limited (SBG/Group; BB+/Stable), if required. Our view of institutional support considers SIBTCH’s strategic importance to SBG, high levels of integration between the parent and the subsidiary, as well as SBG’s majority shareholding in SIBTCH (53.2%) through Stanbic Africa Holdings Limited),” the agency stated.
Stanbic IBTC Holdings Plc and Stanbic IBTC Bank received similar ratings in 2016 and February 2017 after a thorough examination of its credit process and financial results. The bank’s diversified loan portfolio was reviewed, with its impact on various sectors of the economy taken into account. “One of SIBTCH’s main strengths is its diversified earnings. Non-interest income generation is high and underpinned by fees and commissions and trading income. Loan impairment charges are high, but manageable in the context of strong earnings. Costs are well controlled. As a result, profitability metrics are healthy,” Fitch added.
Chief Executive of Stanbic IBTC Holdings PLC, Yinka Sanni, said the ratings are a clear testament of the financial institution’s strength, strong leadership and the unyielding support of its parent company. He reiterated Stanbic IBTC’s commitment to the Nigerian market and pledged it will continue to provide support to all sectors of the economy in order to keep moving individuals and businesses forward.
“We are elated by this validation of our strength. This will help to boost our drive to build a strong end-to-end financial solutions institution that offers bespoke products and services to our clientele. Our commitment to supporting the attainment of Nigeria’s developmental aspirations remains resolute,” Sanni said.
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