TUE FEB 03 2026-theGBJournal| Stanbic IBTC Holdings, the leading investment banking franchise in Nigeria, reported a pre-tax earnings of N556.49 billion in FY2025, representing an impressive 83.2% increase.
The profitability surge filtered down to the bottom line, with net profits rising 72.0% to N380.8 billion, the highest in the bank’s history.
This performance was primarily anchored by a robust expansion in net interest income, which grew by 42.6% to N585.01 billion, fueled by a high interest-rate environment and a 60% y/y increase in loans and advances to N3.84 trillion, despite rising funding costs (4.6% : +10bps) during the period.
The Group’s efficiency and return metrics remained amongst the top performers in the sector, helped by slight improvements in cost management as the Cost-to-Income Ratio improved to 36.6% (down from 37.5% in 2024), indicating that revenue growth significantly outpaced the rise in operating expenses.
Shareholder value creation reached new heights as well, as the Return on average Equity (ROAE) hit 46.7%, driven by an earnings per share (EPS) of N23.98.
These returns are particularly notable given the Group’s substantial capital base expansion during the period; total equity surged 67.8% to N1.12trn. This capital cushion, supported by a Total Capital Adequacy Ratio of 19.20%, which is above the regulatory requirements.
Beyond core lending, the Group’s diversified model proved its resilience through strong non-funded income streams.
Fee and commission income grew by 35.1% to N230.16 billion, reflecting increased digital banking adoption and transactional volumes. Asset quality remained a point of strength; despite the aggressive lending, the Non-Performing Loan (NPL) ratio was managed effectively, and impairment charges saw a significant reduction compared to the prior year.
Liquidity remains healthy with a Loans-to-Deposits Ratio of 63%, as customer deposits grew 45.2% to N4.37 trillion, providing a stable and low-cost funding base.
In light of these results, having already paid an interim dividend of N2.50 per
share, they are expected to declare a robust final dividend.
Coronation Research Stock Rating: HOLD
Price Target: N123.88
Price (03 February 2026): N118.00
Potential Upside (Downside): +5.00%
Ticker: STANBIC NL (Bloomberg)
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