Stanbic IBTC’s corporate banking profit hits N392bn on trading income surge

Stanbic IBTC Holdings Plc’s corporate and investment banking business remained its biggest earnings contributor in the nine months to September 2026, but a sharp decline in net interest income highlights the changing drivers of growth at the financial services group.

The segment generated N516.71 billion in total income in the period, up 26.5 percent from N408.54 billion a year earlier, as trading and other non-interest revenue more than offset weaker interest earnings, according to the group’s unaudited interim financial statements.

The performance underscores the growing importance of treasury, foreign exchange, and other financial-market activities to Stanbic IBTC’s earnings, even as its traditional lending and deposit-taking operations face pressure on interest income.

Net interest income from corporate and investment banking fell 31.2 percent to N223.37 billion from N324.79 billion in the corresponding period of 2025. However, non-interest revenue surged to N293.34 billion from N83.75 billion, reflecting the segment’s stronger contribution from activities outside its traditional interest-based business.

The shift helped lift the segment’s profit before tax by 32.1 percent to N392.07 billion from N296.74 billion, making it the largest contributor to the group’s total profit before tax of N531.88 billion.

The corporate and investment banking division serves multinational, regional, and domestic companies, governments, parastatals, and institutional clients. Its activities span global markets, transactional banking, lending, trade finance, risk management, and investment banking.

Banking segments show uneven growth

Stanbic IBTC’s other banking divisions delivered mixed results, with business and commercial banking recording higher income and profit growth, while personal and private banking experienced a decline in profitability.

Business and commercial banking generated N109.91 billion in total income, up 18.1 percent from N93.05 billion in the first nine months of 2025. Its profit before tax rose 78.9 percent to N30.53 billion from N17.07 billion.

Credit impairment charges also declined to N5.81 billion from N14.17 billion, supporting the improvement in profitability. The lower charges indicate reduced impairment pressure in the period, although they do not by themselves establish a sustained improvement in the underlying quality of the loan book.

Personal and private banking recorded total income of N56 billion, up 18.9 percent from N47.12 billion. However, profit before tax declined 7.4 percent to N10.37 billion from N11.20 billion, as operating expenses increased to N45.54 billion from N36.41 billion.

Net interest income in the segment rose 21 percent to N45.39 billion, while non-interest revenue increased to N10.61 billion from N9.60 billion. The increase in expenses outpaced income growth, weighing on profitability.

Insurance and asset management remained another source of growth, generating N153.72 billion in total income, up 36.3 percent from N112.77 billion in the corresponding period of 2025.

Profit before tax rose 43.7 percent to N98.91 billion from N68.83 billion, while net interest income increased to N24.35 billion from N9.60 billion.

Group earnings rise as trading revenue rebounds

At the group level, Stanbic IBTC’s total income increased 24.8 percent to ₦817.77 billion in the nine months to September 2026 from ₦655.16 billion a year earlier.

The growth was driven by a sharp increase in non-interest revenue, which more than doubled to N437.99 billion from N208.70 billion. Trading revenue rose to N210.13 billion from N23.86 billion, while net fee and commission revenue increased 26.5 percent to N218.30 billion from N172.59 billion.

In contrast, net interest income fell 14.9 percent to N379.79 billion from N446.47 billion, as interest income declined to N545.35 billion from N576.18 billion and interest expense increased to N165.57 billion from N129.72 billion.

Profit before tax increased 35.0 percent to N531.88 billion from N393.84 billion, while profit for the period rose 33.0 percent to N370.36 billion from N278.48 billion. Profit attributable to the parent’s equity holders climbed to N366.26 billion from N275.29 billion.

Operating expenses rose 14.3 percent to N285.39 billion from N249.69 billion, slower than the increase in total income, supporting improved operating leverage. However, the group’s tax expense also increased to N161.51 billion from N115.36 billion.

Lending expands as customer deposits grow

Stanbic IBTC’s customer lending continued to expand during the period. Net loans and advances to customers increased to N2.61 trillion at September 2026 from N2.38 trillion at December 2025, while gross customer loans rose to N2.69 trillion from N2.46 trillion.

Corporate and investment banking accounted for N1.87 trillion of gross customer loans, compared with N578.22 billion for business and commercial banking and N250.22 billion for personal and private banking.

Customer deposits increased to N4.57 trillion from N4.37 trillion at the end of 2025, while total deposits and current accounts, including bank deposits, rose to N5.37 trillion from N4.78 trillion.

The expansion in customer lending and deposits provides a base for future interest income, although the decline in net interest income during the nine-month period shows that balance-sheet growth has yet to translate into stronger aggregate interest earnings.

Net loans and advances across the group, including interbank lending, stood at N3.04 trillion, down from N3.84 trillion at December 2025, largely reflecting a reduction in loans and advances to banks.

Credit impairment charges for the group were N507 million, compared with N11.64 billion in the same period of 2025. This supported the improvement in reported earnings, though the balance sheet still carried N83.30 billion in credit impairment allowances against gross loans and advances.

Capital strengthens, but cash flows remain under pressure

The group’s total assets rose to N9.60 trillion at September 2026 from N8.62 trillion at December 2025. Shareholders’ equity increased to N1.42 trillion from N1.11 trillion, reflecting earnings accumulated during the period.

Stanbic IBTC paid N63.61 billion in dividends to equity holders during the first nine months of 2026, compared with N41.48 billion a year earlier. Total dividends paid, including payments to non-controlling interests, amounted to N67.35 billion.

However, net cash flows from operating activities remained negative at N533.22 billion, compared with a negative N515.96 billion in the corresponding period of 2025. The group ended September with cash and cash equivalents of N1.16 trillion, down from N1.21 trillion a year earlier.

Chinwe Michael

Chinwe Michael is a Nigerian business journalist and media professional with over 4 years of experience covering companies, financial markets, banking, fintech, economic policy, financial inclusion, and corporate affairs. She currently leads the Companies & Markets desk at BusinessDay, where she drives coverage of Nigeria’s corporate and capital markets, translates complex financial data into accessible stories, and mentors younger journalists. Prior to that, she was the head of the financial inclusion/fintech desk. With a background in banking and finance and extensive experience in media and communications, Michael has developed expertise in financial journalism, economic analysis, investigative reporting and market intelligence. Her work examines how monetary policy, corporate performance, capital flows, technology, and regulatory decisions affect businesses, investors, and households. She was selected from about 3,000 applicants as one of 20 journalists for Cohort 4 of the MTN Media Innovation Programme, gaining exposure to new approaches to journalism, technology, and media innovation. Her international journalism experience and engagement with professionals across Russia, Dubai, Saudi Arabia, and others in different sectors have further broadened her understanding of global communication and development.