Standard Bank and its Nigerian subsidiary Stanbic Ibtc Holdings have been ceritified AAA byratings agency Fitch, The two institutions were given the same rating in 2016 and February this year
What does an AAA rating mean ?
AAA ratings denote the highest credit quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are assigned only in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events
Reasons behind the rating
Stanbic was given the rating due to its high non interest income generation from net fees and commissions. The earnings have served as a buffer against its impairments. The bank has also gotten support such as staff training, and corporate governance practices from its parent Standard Bank. Group. Fitch also s
Standard Bank Group of British South Africa was established on the 13th of October 1862. In 1883, the word British was dropped from its nomenclature to enable the bank operate outside areas controlled by the British. Standard Chartered originally owned the bank but divested from it in 1987. Industrial and Commercial Bank of China (ICBC) bought a 20% stake in the bank in 2008, but ownership remains dominantly South African.
Stanbic Ibtc Holdings is a subsidiary of the Standard Bank Group, a financial services group based in South Africa. Stanbic holdings came into being as a result of the 2007 merger between Stanbic bank Nigeria Limited and IBTC Chartered Bank Plc. Stanbic Ibtc Holdings is listed on the Nigerian Stock Exchange (NSE). Stanbic Ibtc shares closed at N42.00 in yesterday’s trading session on the NSE. Year to date, Stanbic Ibtc shares are up 180%.
Fitch was established on December 24 1914 by John Knowles Fitch in New York City. The company is one of the big three rating agencies in the world.