Onome Amuge
Stanbic IBTC Holdings Plc, one of Nigeria’s largest diversified financial services groups, recorded a rebound in earnings in 2025, reflecting the resilience of its multi-pronged business model amid a still-challenging macroeconomic environment. Profit after tax rose 69 per cent to N380.8 billion, up from N225.3 billion in 2024, according to the group’s unaudited financial statements for the year ended December 31.
The lender’s performance was underpinned by a combination of robust interest income, solid non-interest revenue, and a strengthened capital base, which together allowed Stanbic to address high funding costs and interest rate volatility. Net interest income rose 42.5 per cent to N585 billion, compared with N410.5 billion the previous year. Analysts said the growth reflected both loan book expansion and repricing of assets in a wide interest rate environment, where banks with strong deposit franchises were able to widen spreads despite elevated system funding costs.
Non-interest income, comprising fees, trading income, and other non-funded revenue, grew more moderately but remained a significant contributor to the group’s performance. The segment increased 31 per cent to N310.7 billion, up from N236.4 billion in 2024.
Earnings per share rose to N23.68, translating to a price-to-earnings ratio of around 4.6 times at current market valuations. While the multiple is relatively high among Nigerian banks, analysts emphasise that it reflects the quality of the group’s balance sheet and its diversified earnings base rather than speculative price inflation.
On the balance sheet, Stanbic IBTC expanded total assets by 24.7 percent to N8.62 trillion, from N6.91 trillion a year earlier. Growth was driven primarily by lending activity and increased holdings in financial investments. Equity also strengthened markedly, rising 68 percent to N1.12 trillion, boosting the group’s equity-to-asset ratio to 13 percent from 9.7 percent in 2024.
The stronger capital position fed directly into returns, with the group delivering an impressive return on equity of roughly 42 percent, placing it among Nigeria’s most efficient large financial institutions. The relatively underleveraged balance sheet shows the bank has room to grow its loan portfolio further without putting immediate pressure on regulatory capital adequacy ratios.
The results also highlight the strategic advantage of operating across commercial banking, pensions, insurance, and investment banking, allowing the lender to offset volatility in one segment with performance in others, a model that mid-tier competitors may increasingly seek to emulate as Nigeria’s financial sector contends with both macroeconomic and regulatory pressures.
