How Stanbic IBTC Bank PLC Leverages CBN Recapitalization to Set New Standards

By Godson Ikoro

The salutary impact of the on-going recapitalisation exercise of the Central Bank of Nigeria (CBN),
on Nigerian banks is a significant milestone in the history and development of the sector.
Stanbic IBTC Bank PLC Leverages on the impact of the exercise to set new standards in service delivery

You would recall that by shrewd calculus, permutation and differentiation, Governor of CBN, Olayemi Cardoso increased the capital base of different banks in the country, ranging from N500billion for banks that play in the international space; N200billion for National Banks; N50 billion for regional banks ; N50 billion for merchant banks; N20 billion for national non- interest banks and N10 billion for regional non interest bank.

For Stanbic IBTC Bank PLC., one of the leading financial institutions in the country, this exercise has brought numerous and varied benefits. True to its character, Stanbic IBTC Bank is among the first six Banks to meet CBN recapitalisation target.This was achieved following the conclusion of the Rights Issue of its parent Company- Stanbic IBTC Holdings. The bank met the requirements in July 2025 by raising N181.4 billion through an oversubscribed rights issue, which boosted its capital base significantly above the N200 billion minimum capital for national banks. This capital injection was achieved after the initial rights issue aimed to raise N148.7 billion.

By virtue of this , Stanbic IBTC Bank has become larger,stronger and expected to be smarter; sufficiently well- heeled to support the one trillion economy of Nigeria by 2030.

Succinctly put, the bank now has higher capital buffers to mitigate potential risks and stamina to withstand economic shocks.

Commenting on raising the capital base, Wole Adeniyi MD/CEO, said it has changed the strategic direction of the bank. He acknowledged the critical importance of the new Capital, stating that it will significantly, enhance the banks operational capabilities, allowing it to capture additional market opportunities and cater to its diverse clients.The bank can now raise the bar in its chosen segments.

Additionally,the Stanbic IBTC Holdings PLC as at March 2025, the bank had already increased its capital base from N 109.3 billion to N471 billion.

Given its pedigree as a member of the Standard Bank Group, Stanbic IBTC Holdings has already met the Hold-co structure target of N550billions, as approved by its shareholders for a holdco structure,roundly meeting the apex bank requirements to play both in national and international space.

The capital base of a bank simply refers to the bank’s net worth, which is the difference between its assets and liabilities. It represents the bank’s financial strength, stability, and ability to absorb/potential losses.

For a compliant, Stanbic IBTC Bank PLC, a new phase has emerged with obvious benefits and opportunities.

Henceforth,the bank will enjoy increased investor confidence. Given its international history and affiliation with standard bank group, as well as Nigerian investors, Stanbic IBTC, Rights Issues was overwhelmingly oversubscribed by over 21.9percent. And with over N550 billion strength of its parent, the bank has become stronger and more attractive to investors worldwide.The bank which is already a super brand in Nigeria and enjoys high investors and shareholders confidence, will leverage its international goodwill to support the nation’s economy.

The bank will also enjoy increased lending capacity, as it is able to lend more to individuals and businesses,with increased single obligor limit, thus promoting economic growth and development.
By way of explanation, the single obligor limit refers to the maximum amount of credit exposure that a bank can have to a single borrower or a group of connected borrowers. This limit usually set by regulatory bodies to prevent banks from taking on too much risk with a single entity, which could lead to significant losses if the borrower defaults. The single obligor limit of Stanbic IBTC Bank PLC has been increased exponentially.

The management of the bank remains top notch. Led by current MD/CEO, Mr Wole Adeniyi with over 30 years of experience in the financial services industry and Kunle Adedeji, Chief Executive Stanbic Holdings , Stanbic IBTC Bank will a bank to beat in the national Bank category in years ahead.
This is gleaned from its first quarter financial performance. Already the bank has reported a group profit after tax of N82.06billion in quarter 1 of 2025. This stellar performance represented an impressive 80 percent growth compared to same period in 2024. The bank’s total asset grew by 7 percent to N7.40 trillion as at March 2025. The second quarter report will even be better than the first.
Analysts believe that [he recapitalized Stanbic IBTC Bank will do more because it has a thorough-bred management.

Moreover, the Trade Finance award won by the bank from Cosmopolitan Daily, already underscores the banks expertise in facilitating international commerce and empowering domestic businesses to expand globally.

The consolidated Stanbic IBTC Bank will compete more effectively with peers whether in the local or international market spheres. The Bank also won the 2025 Customer Service of the year award at Industry Summit award. Although wearing the toga of customer- centric, innovative and excellent service delivery, the post recapitalisation effect on the bank will be infinity.

Likewise, a recapitalized Stanbic IBTC Bank is expected to do more savings promo to encourage and reward the savings culture among its customers.

In this regard, Emmanuel Aihevba, Country Head, Personal banking at Stanbic IBTC Bank, hinted that the combined draws of two months events as well as the first quarterly draw of Reward savings season4 promo celebrate customers dedication.
Reportedly, he said: “we are rewarding 148 savers with total of N23million to support their aspirations, ranging from education to entrepreneurship.At Stanbic IBTC , we are committed to appreciating our loyal customers by providing meaningful opportunities that enhance their financial well being.

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Additionally, Stanbic IBTC Bank known for its digital skills development,will commit more to equipping Nigerians with skills development.
This is what the Bank is trying to do with its FUZE Festival – a fusion of events that brings together various elements of urban culture like music, dance , fashion, technology all within the same space through talent showcases, exhibitions in a market space. The bank has set aside the sum N90million for grabs at its FUZE season 4.0

Similarly, the new Capital will increase and boost Stanbic IBTC Bank University Scholarship worth N160million to support the dreams and aspirations of over 200 Nigerian Youths over a duration of four academic years. Through its Youth Leadership series (YLS), Higher Institution Football League (HIFL), Together4A limb , Digital skills empowerment program,(DISEP) the impact is huge.

The scholarship is aimed at encouraging hard work and academic excellence among Nigerian undergraduates. The scholarship is open to Unified Tertiary Matriculation Examination candidates dating back to 2023/ 2024, 2024/2025:academic sessons.
In the words of Wole Adeniyi : education is the bedrock of development and investing in the next generation of leaders is crucial for Nigeria’s growth. Initiatives like this university programme are essential in empowering young minds to achieve their full potentials and contribute meaningfully to society. Kunle Adedeji,MDCEO,of Stanbic Holdings, agrees with Adeniyi by saying that Stanbic IBTC Bank PLC recognizes the importance of higher education in the life of every Nigerian youth. “Education remains the most powerful catalyst for transformation, both for individuals and for our nation. Through our scholarship programme, we are not simply funding tuition, we are investing in Nigeria’s future leaders,innovators and change makers who will shape the trajectory of our country for decades to come”. The impact of this scholarship scheme, a corporate social responsibility on the 200 candidates of 23/24 UTME who scored ovér 250 and validly selected at University Scholarship @Stanbic -IBTC.com can not be quantified.

It is also expected that Stanbic IBTC Bank PLC will increase its international money remittance and receival of foreign money transfers, via Western Union and MoneyGram, at branches with options for direct credit to account or cash pick up will be geared up. Just as it raises the bar in off- shore banking; managing funds in multiple currencies and stepping up its diaspora, specialized banking services; account denomination in multiple currencies, and ability to access funds across the globe with partnerships.
Standared Bank group will literally become unstoppable.

The bank already has a reputation for being the best paying bank in Nigeria, being stronger and larger will also rub off on the staff welfare as it records zero staff turnover.

Consequently, the recapitalisation exercise viewed from various prisms has brought numerous benefits for Stanbic IBTC Bank PLC and other banks in the industry.

With Increased financial stability, improved banking services, increased access to credit , Stanbic IBTC is optimally contributing to the growth, development and transformation of Nigerian economy.