Stanbic IBTC Nigeria Plans to Raise $150 Million for New LendingEmele Onu
Stanbic IBTC Holding Co., the Nigerian unit of South Africa’s Standard Bank Group Ltd., plans to raise $150 million in new capital this year, Chief Executive Officer Sola David-Borha said.
The bank plans to use the Tier 2 capital for investments in infrastructure and lending, David-Borha said on a conference call today from Lagos, the commercial capital, without giving further details.
“Loans and advances are planned to grow by 15 percent by end-2013, from 6 percent in 2012,” she said.
Nigerian banks are returning to profitability after Central Bank of Nigeria Governor Lamido Sanusi fired the CEOs of eight of the country’s 24 banks in 2009 and gave them a 620 billion-naira ($3.9 billion) bailout after lending to equity speculators and fuel importers pushed the industry near collapse. The government then set up the Asset Management Corp. of Nigeria to buy bad debts from the banks.
Stanbic’s net income for the three months through March rose to 3.6 billion naira from 2.5 billion naira a year earlier, it said April 19. Revenue climbed to 26.6 billion naira from 20.4 billion naira. The lender is seeking to boost its deposit base by 25 percent this year, David-Borha said.
The bank’s shares rose for a fifth day climbing by 0.8 percent to 13.36 naira at the close in Lagos. The stock has advanced 21 percent this year, compared with a 14 percent gain in the Bloomberg Nigerian Stock Exchange Banking 10 Index, which tracks the country’s largest lenders.