AfriPulse
May 31 (THEWILL) — Stanbic-IBTC Group has consistently demonstrated a pattern of numerous regulatory violations over a five-year period, establishing itself as one of the most noncompliant entities with the regulations imposed by various financial services authorities in Nigeria.
In contrast to several of its competitors that are presenting a spotless record, Stanbic-IBTC has upheld a steady trend that incurs substantial expenses from shareholders’ funds to address regulatory violations, which vary from N5,000 to more than N170 million in a single instance.
A review of the financial statements for the specified periods indicated that the Group faced different annual penalties, with amounts varying from N119 million in 2025 to N593 million in 2024. The financial services Group documented penalties of N159 million for both 2022 and 2023, while it was penalised a total of N233 million in 2021.
In the most recent report for 2025 from the holding company, the trend of penalties commenced early in the year when the Securities and Exchange Commission (SEC) imposed a fine of N3.9 million on Stanbic IBTC Asset Management Limited on 21 January.
The asset management subsidiary was deemed culpable for not adhering to the Commission’s stipulations regarding the valuation method, as well as for erroneous disclosures in the 2023 Audited Financial Statements (AFS) of the Enhanced Short-Term Income Fund, which pertained to misleading asset allocation and incorrect total units of the fund.
Significant penalties throughout the year consist of N56 million twice, levied by the CBN in compliance with Section 68 of the Banks and Other Financial Institutions Act (BOFIA). This section formally authorises the CBN to establish regulations and guidelines for banks, specialised banks, and other financial institutions (OFIs) to tackle cybersecurity concerns in the provision of financial and banking services.
The CBN had in January 2025, also, imposed a fine of N2.7 million on Zest Payments Limited for failure to submit 2023 Audited Financial Statements (AFS) for 14 days as at 14 April 2024. This was in contravention of S. 26(1) of BOFIA 2020 which mandates the submission of financial institutions’ AFS not later than three months after the end of its financial year.
For 2024 which recorded the highest overall penalty, the report showed that the CBN imposed a fine of N176 million on Stanbic IBTC Bank Limited “for alleged non-compliance with complaints resolution directive to repay three customers.”
Stanbic IBTC Bank Limited also suffered a penalty of N44 million “for alleged infraction noted in the CBN Risk Asset Exam December 2020 and RBS June 2022,” and, again, N56 million, twice, in accordance with Section 68 of BOFIA.
A penalty of N540,000 was imposed by the Corporate Affairs Commission (CAC) on Stanbic IBTC Pension Managers Limited “for non-display of the Company’s RC Number on its signage at the Maiduguri Branch of Stanbic IBTC Pension Managers Limited.”
The SEC imposed a penalty of N50.1 million on another subsidiary, Stanbic IBTC Capital Limited, being the Lead Issuing House for the Issuer, Guaranty Trust Holding Company Plc (GTCO PLC). According to the report, the Issuer utilised its digital distribution channels (internet banking and mobile apps) to accept applications under its Public Offer of shares without obtaining a “No Objection” or approval from the Securities and Exchange Commission.
During the year also, the CBN penalised Stanbic IBTC Bank Limited the sum of N104 million for failing to detect and file Suspicious Transaction Report on some reviewed accounts and for failing to conduct Customer Due Diligence on existing business relationship when transactions of significant value take place or there is material change in the way that the account is operated.
Down to 2021, significant penalties were also recorded against the Group and its subsidiaries. These include a N69 million penalty by PenCom on Stanbic IBTC Pension Managers Limited for contravening the provisions of the Revised Registration Guidelines.
PenCom also imposed a sanction of N10 million on the same subsidiary as an administrative sanction for the publication of an unapproved advert by Stanbic IBTC Group. Similarly, NAICOM imposed a fine of N15 million on Stanbic IBTC Insurance Brokers Limited for alleged failure to avail an on-site inspector with the full representation of KYC/CDD documents conducted on customers.
The Nigeria Revenue Service (formerly Federal Inland Revenue Service) imposed a fine of N50,000 on Stanbic IBTC Insurance Limited for late filing and remittance of Value Added Tax (VAT).
SEC also imposed a sanction of N8.2 million on Stanbic IBTC Trustees Limited for misinformation of the income earned on the investment of Bond sinking funds on the year 2020 returns.
The report further revealed that the CBN imposed a fine of N44.8 million on Stanbic IBTC Bank PLC for failure to report export proceeds and Certificate of Capital Importations to CBN and NFIU and, also, N5 million for late rendition of daily return.
The recent development has raised alarm among industry stakeholders, who express discontent regarding the ongoing penalties levied against the Group and its subsidiaries, as though such actions have become a commonplace occurrence. They wonder why all the subsidiaries operate in a manner that attracts penalties as if they lack the capacity to do what is right.
In a previous interview, Mr. Boniface Okezie, the National President of the Progressive Shareholders Association, remarked that the regulatory authorities “constantly seek ways to generate revenue, particularly the CBN.” He voiced his apprehension regarding the repercussions of the fines on the companies’ balance sheets, which in turn affects the dividends received by shareholders.
“However, the banks and other subsidiaries should be careful in their operations because it is the shareholders’ funds that are being used to settle these avoidable penalties,” Okezie said at the time.
Mrs. Bisi Bakare, the National Co-ordinator of the Pragmatic Shareholders Association of Nigeria, has also urged the banks to enhance their professionalism in operations, stating that “the funds allocated for penalties represent a significant drain on the banks’ resources.”
Despite Stanbic IBTC Holdings Plc being deeply involved in unrestrained regulatory violations, it has approved increased compensation for its directors while reporting robust earnings. THEWILL reports that the Group authorised N804.5 million in directors’ remuneration for the fiscal year ended on December 31, 2026, in accordance with resolutions adopted during its 14th Annual General Meeting (AGM) held on May 25, 2026.
The approval comes amid a strong earnings performance by the financial services group, which reported a pretax profit of N551.7 billion for FY2025, representing a significant increase from N303.7 billion recorded in the previous year.
The newly approved remuneration is higher than the N681 million approved for FY2025, N653 million for FY2024, and N544.5 million approved for FY2023, reflecting a consistent upward adjustment over the last four years.
The Group also recorded a 69 percent year-on-year increase in profit after tax, which rose to N380.7 billion in FY2025 from N225.3 billion in FY2024. Shareholders equally approved a final dividend payout of N4 per share for FY2025, higher than the N3 per share declared in the previous year.
The improved payout was supported by stronger reserves, which increased from N390.3 billion in FY2023 to N552.6 billion in FY2024, then rose further to N858.4 billion in FY2025.
Investor sentiment toward the stock also remained positive on the Nigerian Exchange. Stanbic IBTC shares gained 73.61percent in 2025 to close at N100 per share, becoming the second Nigerian banking stock after Guaranty Trust Holding Company Plc to cross the N100 mark.
The stock extended its rally in 2026, rising more than 74 percent year-to-date to trade at N174.5 per share as of May 29, 2026.
At the AGM, shareholders also re-elected Mrs Sola David-Borha, Mr Ballama Manu, and Dr Kunle Adedeji as directors while approving the appointment of Mr Chukwuma Nwokocha to the board.
The Group’s total assets rose to N8.6 trillion in FY2025 from N6.9 trillion recorded a year earlier, while customer deposits increased to N4.3 trillion.
Author Profile
Sam Diala, THEWILL
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
Source: TheWillNigeria | Read the Full Story…
