Stanbic IBTC’s profit jumps 33 percent to N370bn, as trading income surges to N210bn

Stanbic IBTC Holdings Plc grew its profit after tax by 33 per cent to N370.4 billion in the nine months ended September 30, 2026, from N278.5 billion in the corresponding period of 2025, as a sharp increase in trading income and expansion in its balance sheet strengthened earnings.

The financial services group’s unaudited results showed that profit before tax rose to N531.9 billion from N393.8 billion, while total assets increased to N9.6 trillion as of September 30, against N8.6 trillion at the end of December 2025. The performance highlights the contribution of trading and other non-interest income to earnings growth amid Nigeria’s evolving interest rate and foreign exchange environment.

Earnings per share increased to N23.03 from N17.31, representing an improvement of approximately 33 per cent and signalling higher earnings attributable to ordinary shareholders.

A major driver of the performance was the expansion in non-interest revenue, which more than doubled to N438 billion from N209 billion a year earlier. Trading revenue accounted for N210 billion, compared with N23.9 billion in the corresponding period of 2025, reflecting a substantial increase in income from the group’s treasury and market operations.

The growth in trading income was particularly significant, accounting for a substantial portion of the increase in non-interest revenue. However, the extent to which this contribution can be sustained will be important to investors assessing the quality and consistency of the group’s earnings in subsequent quarters.

The group also strengthened its balance sheet, with deposits and current accounts rising to N5.37 trillion from N4.78 trillion at the end of December 2025. Customer deposits stood at N4.57 trillion, underscoring the importance of deposit mobilisation to the group’s funding base.

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Loans and advances to customers increased to N2.61 trillion, indicating continued lending activity to businesses and individuals. However, loans and advances to banks declined sharply to N428 billion from N1.46 trillion, pointing to a significant change in the composition of its assets.

Cash and bank balances rose to N1.95 trillion from N1.69 trillion, while trading assets increased to N1.31 trillion from N862 billion. These movements contributed to the expansion in total assets, although the relative contributions of customer lending, liquid assets and trading positions will remain relevant to investors evaluating the group’s risk exposure and future income prospects.

Shareholders’ funds also strengthened during the period. Equity attributable to ordinary shareholders increased to N1.42 trillion from N1.11 trillion at the end of December 2025, supported by the growth in retained earnings to N854.8 billion from N586.3 billion.

The group paid N63.6 billion in dividends during the nine-month period, providing returns to shareholders while retaining a larger earnings base to support its operations. Total equity, including non-controlling interests of N10.8 billion, stood at approximately N1.43 trillion.

Despite the strong profit performance, cash flow remains an area for investors to monitor. Net cash flow from operating activities was negative at N533.2 billion, compared with a negative N516 billion in the corresponding period of 2025.

The operating cash outflow occurred alongside the expansion of the group’s balance sheet and higher tax payments. While accounting profits reflect the group’s earnings performance, the movement in operating cash flow provides a separate measure of its cash generation and funding requirements.

The group also recorded N197.7 billion in net cash outflows from investing activities, including expenditure on property, equipment and intangible assets. Financing activities generated a net cash outflow of N240.9 billion, reflecting dividend payments and debt repayments.

For investors on the Nigerian Exchange, the latest results provide several indicators for assessing Stanbic IBTC’s performance: rising profitability, higher earnings per share, stronger shareholders’ equity and an expanding deposit base. At the same time, the growing contribution of trading income and negative operating cash flow raise questions about earnings sustainability and cash conversion that subsequent financial statements may help clarify.

The results were signed by Chairman Sola David-Borha, Chief Executive Chukwuma Nwokocha and Chief Financial Officer Kunle Adedeji.

As the group enters the final quarter of 2026, the sustainability of trading income, the pace of customer lending and deposit growth, and the conversion of reported earnings into operating cash flow will be important considerations for shareholders evaluating its full-year performance.