In a statement on Wednesday signed by Chidi Okezie, the Company Secretary, the company praised Demola Sogunle for his contributions to the success of the group after 35 years of dedicated service.

The statement read: “After almost 35 years of dedicated service, Dr. Sogunle has made a significant impact on Stanbic IBTC as a Group, guiding the organisation through numerous challenges and achievements.

“The Board of Directors extends its profound gratitude for his unwavering commitment, visionary leadership, and significant contributions to the success of Stanbic IBTC Group over the years.”

Sogunle occupied various positions within the group, serving as the Chief Executive of Stanbic IBTC Pension Managers Limited from 2011 to 2015 before his appointment as Deputy Chief Executive of Stanbic IBTC Bank Limited in December 2015. In 2020, he became the CEO of Stanbic IBTC Holdings.

Stanbic IBTC commented on the appointment of Kunle Adedeji, stating that he is the current Chief Financial and Value Management Officer of the company and will continue in this role while serving as acting CEO.

According to Stanbic IBTC, Adedeji has over 25 years of experience working within the banking sector.

“Following the retirement of Dr. Demola Sogunle, the Board has received regulatory approval to appoint Dr. Kunle Adedeji as acting chief executive of the company, with effect from 1 November 2024. Dr. Adedeji brings a wealth of experience and a strong track record of leadership within our organisation,” the company said.

“Adedeji, who was appointed as an executive director in 2019, is a seasoned financial expert with over 25 years in the banking sector.”

Stanbic IBTC said Adedeji holds a master of business administration (MBA) in finance from the University of Lagos and a doctor of business administration (DBA) from the SBS Swiss Business School, Switzerland.

The unveiling, held today, showcased an initiative set to redefine the landscape of financial services in Nigeria and beyond.

Basil Omiyi CON, the Chairman of Stanbic IBTC Holdings PLC, set the tone for the event with a warm welcome address, noting that the bank received the regulatory approval to create a Fintech in the first quarter of this year, 2023.

He emphasized the company’s longstanding commitment to being the preferred end-to-end financial services provider for businesses and individuals in the region. 

“As you know, Stanbic IBTC Holdings PLC has always depended on partnerships and we appreciate you for joining us today. Stanbic IBTC’s motto always says that we want to be and we aim to be and stay that way, the preferred end-to-end financial services provider to businesses and persons in our country and region. That’s our goal.

Of course, as you know, we have subsidiaries that are aligned towards this, whether in banking, pension, insurance, asset management and so on. With the group of subsidiaries, it was very clear to us that Stanbic IBTC Holdings PLC needs a fintech. Because without a Fintech, orchestrating platforms could help in generating the next growth coming to the financial services sector for businesses, consumers, technology developers and without that, with our integrated financial services, we are probably one of those in the best position to exploit a Fintech for the benefit of the society itself. 

All the subsidiaries were aligned indeed towards the need to have one, and of course, we chose that this Fintech should be a solution-driven platform orchestrator. We then bring partners into that platform and together, we create a home grown solution, both for ourselves and for our partners in the platform, businesses deserve. That’s how the idea of Zest was born.”

Acknowledging the power of partnerships, Omiyi expressed gratitude to all stakeholders present, emphasizing the role of collaboration in achieving the goals.

The genesis of Zest was traced back to the collective vision of the Stanbic IBTC Holdings PLC management team. Dr. Demola Sogunle, the Chief Executive, shared insights into the group’s strategic focus, encapsulated in the acronym SUV – Scale, User experience, and Velocity. With an eye on digitization and global demands, the decision to establish Zest as a wholly-owned fintech subsidiary was made.

Zest emerges as a standalone fintech powerhouse, intricately woven into the fabric of Stanbic IBTC Holdings PLC’s future endeavors. At its core, Zest embodies the concept of platform orchestration, enabling diverse payment options, seamless business transactions, and the facilitation of embedded finance. 

Its mission extends beyond conventional payments, encompassing nano and micro insurance, pensions, consumer credit, investment opportunities, mutual funds, collective investment schemes, and other value-added services. In essence, Zest serves as a catalyst for true financial inclusion, empowering ordinary Nigerians with unprecedented access to a myriad of financial products and services.

“Zest is made to help us to orchestrate that especially in the areas of e-commerce, buy-now-pay-later, working capital solutions and value added services. With Zest, we see opportunities to unlock new networks of partnerships and deliver deliberate and intentionally better experiences in the areas of payments and customized solution delivery. 

We consistently improved based on feedback received from enagagents and interactions in the past few months.” Dr. Sogunle said.

Stanley Jacob, the Chief Executive of Zest, highlighted the platform’s design principles, elucidating the core foundations upon which it stands.

“Businesses not just in Nigeria, but all over the world are constantly looking out for ways and tools to grow and expand. They want to access digital solutions and platforms that can help them reach a new network of customers.” he said. “At Zest, we have been able to execute a true platform orchestration strategy and this strategy is hinged on four broad principles: 

Zest’s first principle — Multi-Railed Payment — ensures stability, security, and flexibility for businesses, enabling them to collect payments through various channels, including card payments, account-based payments, Quick Response codes, transfers, USSD, and more. 

Notably, Zest made history by becoming the first fintech to go live on AfriGo, a proof of its pioneering spirit.

The second principle — Human-Centered Design — prioritizes customer needs, fostering a seamless user experience. Zest simplifies onboarding processes, allowing businesses and consumers to make payments online effortlessly. Innovation, customer-centricity, and user experience form the cornerstone of Zest’s approach.

Business Growth Powered by e-Commerce was nailed as the third principle. Zest empowers businesses of all sizes, enabling them to showcase products and reach new customer networks. Through customizable stores and an e-commerce marketplace, the fintech provides a platform for businesses to thrive, whether online or offline.

Operational Excellence, which was the fourth principle emphasizes the platform operating within the highest standards of integrity and regulatory compliance. Zest adheres strictly to applicable card schemes and processing rules. Strong governance and global compliance underscore Zest’s commitment to operational excellence.

Business owners who have embraced Zest for their enterprises have praised its speed, accessibility, and accuracy. Transactions are executed swiftly, enabling businesses to operate seamlessly in the digital arena.

The launch of Zest marks a significant milestone, reaffirming Stanbic IBTC Holdings PLC’s goal in the financial services industry. As Zest begins its journey as a catalyst for financial empowerment, it promises a future where financial services are not just accessible but tailored to meet the unique needs of every individual and business. 

With Zest, Stanbic IBTC Holdings PLC has ushered in a new era of financial innovation and inclusivity, inviting everyone to join in the journey towards a more connected and empowered financial future.

The rating also extends to its subsidiary, Stanbic IBTC Bank PLC, highlighting its strong support from its ultimate parent, Standard Bank Group Limited (SBG) of South Africa, and underscores its resilience in a challenging operating environment.

Fitch Ratings, a globally recognized credit rating agency, considered Standard Bank Group’s controlling ownership of Stanbic IBTC, its strategic importance as the holding company for leading Corporate and Investment Banking (CIB) and Wealth businesses in Nigeria, and the integral role of Stanbic IBTC Bank in Standard Bank Group’s Nigerian operations.

The agency acknowledged the high level of integration, shared branding, and the modest contribution to net income as factors contributing to SBG’s propensity and ability to support both entities, as reflected in its ‘BB-‘ rating and Nigeria’s ‘B-‘ Country Ceiling.

Dr. Demola Sogunle, Chief Executive, Stanbic IBTC Holdings, expressed his satisfaction with the rating affirmation, stating, “We are delighted with Fitch Ratings’ affirmation of our ‘AAA(nga)’ ratings, which underscores our financial strength and stability in the Nigerian market.

This rating affirms our commitment to maintaining a solid capital base, sound asset quality, and profitability. It also reinforces our stakeholders’ confidence in our ability to navigate challenging operating conditions.”

Despite the risks associated with the exchange rate disparity, the agency acknowledges Stanbic IBTC’s leading position as a domestic universal bank in Nigeria, comprising a significant portion of the Bank’s consolidated assets.

Stanbic IBTC’s sound asset quality is evident in its impaired loans ratio, which stood at 2.5% at the end of the first quarter of 2023, with total reserves coverage of bad loans at a robust 121%.

The institution has demonstrated strong and consistent profitability, with an operating profit-to-risk-weighted assets ratio of 7.7% in the first quarter of 2023, driven by a wider net interest margin and trading gains. Its solid capitalization, reflected in a CET1 ratio of 18.4%, provides a substantial buffer over regulatory requirements under Basel III.

Mr. Wole Adeniyi, Chief Executive, Stanbic IBTC Bank also added, “Our diversified business model, sustained growth in net fees and commissions, and prudent risk management practices will continue to drive our profitability and solidify our position as a leading financial institution in Nigeria.”

Stanbic IBTC Bank has established an entrenched funding profile, although it maintains a higher loan-to-customer deposits ratio than peers due to its modest retail franchise and greater reliance on wholesale funding.

Nevertheless, the Bank’s funding profile remains stable, supported by its good brand recognition and a significant share of current and savings accounts (CASA) deposits. The institution also maintains sufficient liquidity buffers in local and foreign currency.

The rating affirmation from Fitch Ratings provides confidence in Stanbic IBTC’s financial strength, resilience, and ability to weather the challenges in the Nigerian banking industry.

It highlights the unwavering support of its ultimate parent,  Standard Bank Group, and solidifies Stanbic IBTC’s position as a leading player in the Nigerian financial market.

Financial highlights

Financial Position

• Total assets increased by 8% to ₦2.95 trillion (December 2021: ₦2.74 trillion)

• Gross loans and advances up 23% to ₦1.17 trillion (December 2021: ₦946.25 billion)

• Non-performing loan to total loan ratio of 2.6% (December 2021: 2.1%)

• Customer deposits increased by 1% to ₦1.14 trillion (December 2021: ₦1.13 trillion)

• Deposit mix improved to 73.1% (December 2021: 66.0%) of current-and savings-accounts deposits to total deposits

Income Statement

• Gross earnings of ₦207.4 billion, representing a 41% increase (9M 2021: ₦146.6 billion)

• Net interest income of ₦79.66 billion, up 48% (9M 2021: ₦54.0 billion)

• Non-interest revenue of ₦94.40 billion, up 36% (9M 2021: ₦69.25 billion)

• Total operating income of ₦174.06 billion, up 41% (9M 2021: ₦123.25 billion)

• Profit before tax of ₦68.95 billion, up 52% (9M 2021: ₦45.31 billion)

• Profit after tax of ₦55.19 billion, up 38% (9M 2021: ₦39.95 billion)

• Cost to income ratio of 56.1% (9M 2021: 64.3%)

• Return on average equity (annualised) 19.2%

• Return on average assets (annualised) 2.5%

Capital and Liquidity

The Group continued to maintain an adequate level of capital during the period. The Group’s total capital adequacy ratio closed at 19.2% (Bank: 14.9%) which is significantly higher than the 11% minimum regulatory requirement. The Group also maintained a strong and diversified funding base during the first nine months of 2022.

The Group’s liquidity ratio was above the 30% regulatory minimum requirement, indicating the Group’s commitment to meeting its liquidity obligations in a timely manner.

The Group also maintained its Fitch AAA (nga) rating, reflecting its stable financial outlook and strong credit worthiness.

Commenting on the results, Dr Demola Sogunle, Chief Executive Stanbic IBTC, said: 

“We continue to witness growth in our client franchise and key income lines. The Group’s profitability increased by 57% QoQ, largely attributable to impressive growth in net interest income and other revenue sources. This was supported by lower credit impairment charges and operating expenses when compared with the second quarter.

The uplift in net interest income resulted from increase in the volume and yield on risk assets as we sustained our loan growth performance.

In addition, trading revenue grew by 47% QoQ following the increase in trading activities during the third quarter.

Sustained focus on cost optimisation led to 8% QoQ decline in our operating expenses. As such, our cost-to income ratio improved to 56.1% from 59.9% in the first half of the year, and 64.3% in the prior year.

“We kicked-off the third quarter with the implementation of initiatives to deliver top notch services to our customers by leveraging digital technology.

“We entered into a partnership to enhance the Stanbic IBTC SME Banking platform by providing seamless payroll and salary management services to SME Banking customers.

The digital module of the solution is now embedded on Stanbic IBTC’s SME online platform and offers value added services such as free HR services to SME customers for the first three months, salary payment of remote employees while staying compliant to local laws, provision of financial data with detailed analytics, amongst others.

“We have also seen an increase in the uptake of our customer loyalty programme, PlusRewards which provides exclusive discount offers to Stanbic IBTC card holders at select merchant stores.

“Our Business clients can also sign up for the scheme as merchants and enjoy benefits such as free Stanbic IBTC point of sale (POS) devices, free marketing opportunities as well as access to Stanbic IBTC’s client base.

“Being a client-focused organisation, this will enable us to strengthen the relationship with our customers.

“As an Environmental Social and Governance (ESG) driven organisation, we do not relent in achieving our sustainability goals. 37 of our office locations currently run on solar powered energy solutions and we have recycled 6.6 tonnes of waste papers in return for tissue papers year-to-date as we continue to support the global reduction of carbon emissions.

“During the quarter, we disbursed credit facilities of over N504mn to support educational service providers in Nigeria and disbursed about N4.73bn credit facilities to 861 SME clients.

“We have also modified three additional office locations and 10 offsite ATM locations for accessibility to the physically challenged. Hence, 134 office locations and 97 offsite ATM locations have been modified so far.

“We remain committed towards growing our key metrics over the rest of the year and achieving our FY 2022 guidance.”

Bento Africa is a payroll and Human Resource Management (HRM) company with a mission to meet work wherever it happens, expand broader access to a wider range of financial services, and drive inclusion across the continent.

Speaking on the rationale behind the partnership, Wole Adeniyi, Chief Executive of Stanbic IBTC Bank, stated that the bank was committed to delivering more digitalized value-added services to businesses and SMEs. Every business we serve pays salaries and has employees – The provision of a world-class technology platform that enhances how they relate with our bank, drove this strategic partnership.

He said: “We are delighted to partner with Bento Africa, which currently serves over 1,000 businesses in Nigeria, Ghana, Kenya, and Rwanda, with plans to roll out to an additional 10 countries by the end of the year.

Bento Africa is modernizing the payroll and HRM market in Africa which has traditionally relied on laborious, manual processes to handle payroll. The start-up helps businesses of all sizes to automate the disbursement of salaries and other statutory remittances, including taxes and pensions with a single click.”

“Stanbic IBTC customers can access Bento’s services through our digital platforms, including payroll and HRM services, detailed financial data analytics, and seamless payment of employees in both the formal and informal sector, while staying compliant to local laws,” Wole said.

He went on to explain that the Bento platform is embedded in the Stanbic IBTC SME internet banking portal, where customers can access the website and get registered. “Customers can access the Bento platform by clicking the Bento digital icon on our SME internet banking, which will redirect them to the Bento web portal for registration,” he added.

The service will be free for Stanbic IBTC customers for the first three months and is a welcome development for businesses who spend hours each month manually processing payroll and calculating and submitting statutory remittances, which is not only laborious but often leads to errors and the problem of “ghost workers”. 

Speaking on behalf of the Bento team the founders, Ebun Okubanjo and Chidozie David Okonkwo said “we see this as the beginning of much deeper partnerships with established institutions and start-ups.

We are not surprised that Stanbic IBTC was the first to the table, as the bank and its history are grounded in innovation we have enjoyed working with them and are extremely excited about the future of salaries and benefits and what that will mean for the employer, the employee, and society as a whole.”

Both Stanbic IBTC and Bento Africa are of the opinion that the spirit of innovation that brought this partnership together will inevitably lead to more value-added services for Stanbic IBTC customers.

According to Dr. Babatunde Alayande, Head, PENCOM, South-West Office who spoke at a forum in Lagos, the company currently has 29 pension branches, and 180 banks, and attained the 4 million AUM in 2021.

Assets Under Management (AUM) is the total market value of the investments that a person or entity handles on behalf of investors

According to Alayande, the reviewed 2014 Pension Reform Act ushered in the contributory pension scheme that is fully funded and privately managed based on individual accounts for both the public and private sectors employees to ensure smartness under the new pension reform.

At the forum themed ‘Pension Smart: Equipping your Employees for a better future, he stated that the objective of the pension reformed act is to establish uniform rules, regulations, and standards for the habilitation, payments of retirement benefits for the public service of the federation, the FCT state, local government, and the private sector.

He said the act also made provision for the good operation of the scheme; to ensure that every person who worked received retirement benefits as when due; to assist individuals by ensuring they save to cater for their livelihood at old age and for the proper administration of the system.

“To be smarter, there are provisions in the 2014 Act that made it possible for pension laws in Nigeria to be reviewed periodically to accommodate various dynamics in the operating environment.

“The pension industry currently operates on the pension reform Act of 2014 to avert the confusion on whose authority it is to supervise and regulate pension matters in Nigeria.

The act established the pension commission as the sole regulator and supervisor of all pension matters in Nigeria.

He said the theme of the forum was very apt for pension to be smart to equip employees for the future, employers are expected to adhere to the pension act 2014 to ensure the remittance of pension contributions of employees into their employment account within 7days of salary payment.

With the N15 billion Series II offer scheduled to close on Friday, 10 June 2022, Stanbic IBTC Asset Management Limited, the Fund Manager and subsidiary of Stanbic IBTC Holdings PLC, has again called on interested investors to take advantage of the offer.

The Fund is designed to bridge the gap between the long-term funding needs of promoters of infrastructure projects and investors with long-term capital.

The Stanbic IBTC Infrastructure Fund, which is structured as a closed-ended collective investment scheme, seeks to provide competitive returns above the benchmark Federal Government of Nigeria bond yield of comparable tenor as the outstanding tenor of the Series II from time to time.

The Stanbic IBTC Infrastructure Fund Manager successfully closed its Series I offer in September 2021 and raised capital from a diverse group of investors, including Pension Fund Administrators, Asset Management Companies, Insurance Companies, and High Net-worth Individuals.

The proceeds of the Series I offer were deployed towards gas distribution value chain infrastructure and healthcare infrastructure.

“We encourage institutional investors to continue participating in the Stanbic IBTC Infrastructure Fund issuances as we proceed with the efforts to bridge the existing infrastructure asset gap through careful project selection that delivers positive social and economic multiplier effects” Dolu Olugbenjo, Chief Investment Officer, Stanbic IBTC Infrastructure Fund, said. He added that the fund aims to deliver competitive investment returns to investors within acceptable risk thresholds.

Dolu reiterated that the fund will be deployed to support infrastructure and infrastructure-related project opportunities in healthcare, transport, logistics, renewable energy, and power amongst others. Interested investors have been encouraged to go online and fill out the form and a representative will contact them within 72 hours.

Stanbic IBTC’s CSI is hinged on three core pillars: education, health, and economic empowerment, and aims to meaningfully contribute to enhancing the wellbeing of Nigerian communities, especially at the grassroots.

One of such is the Together4ALimb initiative, where the company provides support to enhance the quality of life of children with missing limbs.

Through the provision of prosthetics and educational trust funds worth millions of naira, Stanbic IBTC ensures these young people can live a normal and productive life like their counterparts.

The Organisation understands the need to make an impact in the lives of children living with missing limbs, either by birth or via accidents, and is determined to do so through its signature Together4ALimb initiative and CSI.

It is important to give these children hope for the future, and enable them see the endless possibilities for greatness in life, irrespective of societal prejudices they face owing to their circumstances,  which could pose a threat to the achievement of their dreams and aspirations.

The educational trust support provides a platform for  young people to access quality education needed to enable them maximize their potential and become whatever they want to be.

The signature CSI comes with an awareness drive, “Together4ALimb charity walk”, which is designed to draw attention to this health challenge and hopefully garner financial and government support for survivors. The annual Together4ALimb walk has recorded over 5,000 participants since inception.

Stanbic IBTC reiterates its commitment to empowering and creating better narratives for communities in Nigeria. In 2021, the Organisation took on several value-driven charitable initiatives such as  school renovations, orphanage, nursing homes and special needs centre visitations, , all targeted at empowering and enriching the lives of less privileged Nigerians.

A memorable CSI initiative taken on last year by the organization was a visit to the Ketu Special Children Centre, where the organisation presented medical and physiotherapy equipment to the facility. The donations made will go a long way to help improve the wellbeing of children living with cerebral palsy, a condition which causes other health issues like vision impairment, hearing and speech problems, and learning disabilities.

Other CSI initiatives taken on by Stanbic IBTC last year include the presentation of hospital equipment to Batagarawa Primary Health Care, Katsina; presentation of a CT Scan room and other medical facilities to Mother and Child Hospital, Kano State; the donation of medical items to Mother and Child Hospital, Ebonyi State; the commissioning of a borehole donated to the LEA Primary School FCT Abuja; renovation of the Antenatal Care Unit at General Hospital, Mushin, Lagos, as well as empowering young people via financial knowledge on the World Savings Day in various schools nationwide and mentoring sessions for students at Estate Senior Grammar School, Ilupeju, amongst others

Stanbic IBTC is focused on delivering relevant and impactful CSI projects in communities where development is most needed.

In 2022, Stanbic IBTC promises to deliver more social and economic initiatives to facilitate growth and improve the welfare of the Nigerian communities, especially those in rural areas.