Stanbic IBTC fixed income and currencies has cushioned the lender’s earnings as the central bank’s recent interest rate cuts are putting pressure on traditional lending margin.
Also, the Bank achieved solid progress across its four key growth drivers: client franchise, digital lending, infrastructure, and Africa China banking.
For the first nine months through September 2026, Stanbic IBTC’s profit after tax (PAT) spiked by 33 percent to N370.63 billion from N278.47 billion as at September 2025.
The growth in profit was largely driven by an exceptional item that is not expected to recur. Fixed income and currencies surged by 780.67 percent to N210.13 billion in September 2026 from N23.86 billion as at September 2-2025.
As the central bank has started to cut interest rates, Stanbic IBTC and peer rivals are using their fee-generating segment to bolster earnings.
Non-interest revenue surged by 109.87 percent N437.98 billion, propelled by improved trading activities and a 26.48 percent increase in fees and commissions compared to the prior year.
As the central bank cuts or keeps interest rates low to make borrowing cheaper for consumers and businesses, Stanbic IBTC lending margins are taking a hit.
Interest income dipped by 5.35 percent to N545.35 billion in the period under review from N576.18 billion as at September 2025.
Net interest income was down 14.93 percent to N379.78 billion in September 2026 from N446.46 billion as at September 2025.
On September 22, 2026, the Apex Bank reduced its Monetary Policy Rate (MPR) from 26.5 percent to 23 percent, cutting 350 basis points. It is the largest single reduction in the benchmark rate since 2006.
In line the Bank’s deliberate portfolio optimisation strategy, total loans and advances were down 21.09 percent to N3.38 trillion in September 2026 from N3.84 trillion as at September 2025.
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