Stanbic IBTC Joins Zenith, Access as It Hits CBN’s Recapitalisation Target
- Another Nigerian bank has hit the N200 billion recapitalisation target set by the Central Bank of Nigeria (CBN)
- The bank disclosed that it achieved the feat after its parent company injected about N140 billion into it to scale the hurdle
- It said in a statement that the move comes after a successful conclusion of rights issues of the parent company, which raised N148.7 billion
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The number of Nigerian banks that have hit the recapitalisation target set by the Central Bank of Nigeria (CBN) has swollen to about five.
The development comes as Stanbic IBTC Bank disclosed that it has met the apex bank’s recapitalisation requirements after a successful conclusion of rights issues of the parent company, which raised N148.7 billion, with a 21.9% oversubscription rate to achieve N181.4 billion.
Stanbic IBTC Bank holds a national banking licence from the CBN and has a minimum recapitalisation target of N200 billion.
Source: Twitter
Five banks scale CBN’s hurdle
Stanbic IBTC Bank joins Access Bank, Zenith Bank, Ecobank, and Lotus Bank in scaling the CBN’s recapitalisation hurdle.
Stanbic IBTC Holdings, the parent company, disclosed that the strategic initiative not only ensures its bank subsidiary meets the recapitalisation target set by the CBN but also secures a robust financial footing towards sustained future growth.
The company said:
“The successful execution of this capital raise speaks volumes about the trust that existing shareholders have in the strategic direction and initiatives of Stanbic IBTC.”
The banking giant disclosed that the feat underscores its operational excellence and its commitment to maintaining transparency and accountability.
Stanbic IBTC gets N140 billion lifeline
Vanguard reported that the bank stated that the additional funding of N140 billion from the holding company enables it to strengthen its position in the banking industry.
Experts have said that the recent compliance is essential for the bank’s continued success and stability in a fluid environment.
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The acting chief executive of Stanbic IBTC Holdings Plc, Kunle Adedeji, said the participation of the company’s key stakeholders in the Rights Issue shows their strong confidence in the banking group’s vision and long-term goals.
Wole Adeniyi, Stanbic IBTC Bank CEO, said that in line with the CBN mandates, the financial institution is well-positioned to confront the challenges head-on.
The injection of N140 billion from IBTC Holdings Plc shows a significant commitment to growing the bank’s capacity.
Six banks face a funding gap
A previous report by Legit.ng stated that about six commercial banks are racing to meet a combined capital funding gap of N964.8 billion, as the deadline for banking recapitalisation set by the Central Bank of Nigeria (CBN) approaches.
A new finding and market data show that Fidelity Bank, FCMB, GTCO, UBA, First Holding Company, and Sterling Bank face varying funding gaps under the new regulatory ceilings.
In total, about seven banks have raised N1.3 trillion, representing 52.6% of the estimated capital of N2.5 trillion in the banking sector.
The banks that have yet to meet the new CBN threshold include Fidelity Bank, with a funding gap of N194.4 billion, UBA, with a gap of N144.8 billion, and First Bank, with a gap of N78.7 billion.
Source: Getty Images
Others are Sterling Bank with a N70 billion gap, GTBank, with a funding gap of N152.4 billion, and FCMB, with a funding gap of N90.7 billion.
Recapitalisation drives merger fever
Legit.ng earlier reported that the CBN recapitalisation target is set to significantly reshape the country's banking landscape, particularly impacting smaller banks.
The deadline for meeting the new capital requirements is March 31, 2026.
According to reports, two Nigerian banks, one with a regional licence and another with a national licence, have started merger talks, which may be finalised in the coming months.
Source: Legit.ng
