2018 Annual Report - Stanbic IBTC Holdings PLC

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 251

Group Gross amount Gross amounts Net amounts of Financial Net amount
31 December 2017 of recognised of recognised financial assets instruments, Nmillion
Assets financial assets1 financial liabilities presented in the
Derivative assets offset in the financial
Pledged assets Nmillion statement of statement of collateral & cash
Loans and advances to customers financial position2 financial position
collateral3
Nmillion Nmillion Nmillion

10,840 - 10,840 (3,689) 7,151
10,768
11,865 - 10,768 (9,998) 770
33,473
- 11,865 (4,425) 7,440

- 33,473 (18,112) 15,361

Group Gross amount Gross amounts Net amounts of Financial Net amount
31 December 2017 of recognised of recognised financial liabilities instruments, Nmillion
Liabilities financial assets
Derivative liabilities financial offset in the presented in the financial
Trading liabilities liabilities1 statement of statement of collateral & cash
Deposits from customers Nmillion financial position2
Other liabilities financial position collateral3
Nmillion Nmillion Nmillion

1,851 - 1,851 (1,851) -
9,998
4,425 - 9,998 (9,998) -
21,121
37,395 - 4,425 (4,425) -

- 21,121 (1,838) 19,283

- 37,395 (18,112) 19,283

1Gross amounts are disclosed for recognised assets and liabilities that are either offset in the statement of financial position or subject to a master netting arrangement
or a similar agreement, irrespective of whether the offsetting criteria is met.
2The amounts that qualify for offset in accordance with the criteria per IFRS.
3Related amounts not offset in the statement of financial position that are subject to a master netting arrangement or similar agreement, including financial collateral
(whether recognised or unrecognised) and cash collateral.

The table below sets out the nature of agreement and the types of rights relating to items which do not qualify for offset but
that are subject to a master netting arrangement or similar agreement.

Derivative assets and liabilities Nature of agreement Related rights
Trading liabilities ISDAs
The agreement allows for set off in the event
Global master repurchase agreements of default

The agreement allows for set off in the event
of default

252 Stanbic IBTC Annual report for the year ended 31 December 2018

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
For the year ended 31 December 2018

30. Contingent liabilities and commitments

30.1 Contingent liabilities Group Company

31 Dec 2018 31 Dec 2017 31 Dec 2018 31 Dec 2017
Nmillion Nmillion Nmillion Nmillion

Letters of credit 83,199 118,054 --

Guarantees 63,282 35,323 --

146,481 153,377 --

Guarantees and letters of credit are given to third parties as security to support the performance of a customer to third parties. As
the group will only be required to meet these obligations in the event of the customer’s default, the cash requirements of these
instruments are expected to be considerably below their nominal amounts. The expected credit loss of N664 million on this has been
included in provisions (see note 25).

30.2 Capital commitments 1,322 789 14 26
Contracted capital expenditure 17,252 17,252 2,067 2,067
Capital expenditure authorised
but not yet contracted 18,574 18,041 2,081 2,093

The expenditure will be funded from the group’s internal resources.

30.3 Loan commitments Management believes that the ultimate 30.5 Update on the legal case
As at 31 December 2018, the group had resolution of any of the proceedings will between Stanbic IBTC Holdings PLC
irrevocable loan commitments amounting not have a significantly adverse effect on and the Financial Reporting Council
to N46.5 billion (Dec 2017: N56.1 billion) the group. Where the group envisages that
in respect of various loan contracts and there is a more than average chance that Stanbic IBTC Holdings’ appeal in relation
the expected credit loss on this amounts to a claim against it will succeed, adequate to this legal case focuses solely on the
N132.7 million (Dec 2017: Nil). provisions are raised in respect of such alleged illegality of certain agreements
claim. See note 25 for details of between SIBTC and Standard Bank of
30.4 Legal proceedings provisions raised. South Africa (“SBSA”) with regards to
In the ordinary course of business the the sale of Stanbic IBTC Bank’s Finacle
Group is exposed to various actual and banking software and SBSA subsequent

potential claims, lawsuits and other On 31 July 2017, the Lagos State High licensing of such software to Stanbic IBTC
proceedings that relate to alleged errors, Court awarded general damages of N50 Bank. The Court of Appeal in Appeal No.
omissions, breaches. The directors are billion jointly and severally against Stanbic CA/L/208/2016 delivered judgment on

satisfied, based on present information IBTC Bank PLC (the Bank) and another 8 November 2018 upholding the appeal

and the assessed probability of such defendant. The claimant in this legal filed by Stanbic IBTC Holdings PLC. In
existing claims crystallising that the group proceeding asserted that the Bank and its judgment, the Court of Appeal set
has adequate insurance cover and / or the other defendant acted maliciously by aside the initial judgment of the Federal

provisions in place to meet such claims. filing an erroneous report on the claimant’s High Court and held that the failure to
indebtedness to the Bank to a credit register the software agreement was not a
There were a total of 336 legal bureau. On 1 August 2017, the Bank has criminal offence and does not render the
proceedings outstanding as at 31 filed a Notice of Appeal and an application agreement illegal, null and void.
December 2018 (Dec. 2017: 297 cases). for an injunction against the enforcement
247 (Dec 2017: 198) of these were of the judgement pending the hearing and 30.6 Finacle Core Banking software
against the group with claims amounting to determination of the Appeal.
N151.9 billion ( Dec 2017: N159.6 billion), In 2012, SBSA purchased from Stanbic
while 95 other cases (Dec 2017: 99 cases) Management, after consideration of all IBTC Bank PLC its Finacle banking
were instituted by the group with claims information available, assessed that this software for a consideration of ZAR
amounting to N21.2 billion ( Dec 2017: appeal has a high likelihood of success in 189million, which sale was captured
N18.4 billion). Appeal and/or further legal proceedings in a Sale, Purchase and Assignment
and will be actively pursuing the same. Agreement (“SPA”) that was submitted
These claims against the group are Based on this assessment, management to the National Office for Technology
generally considered to have a low believes that the ultimate resolution will Acquisition and Promotion (“NOTAP”) in
likelihood of success and the group not have a significantly adverse effect on 2013. Subsequently, an affiliate software
is actively defending these claims. the financial position of the group. agreement was established with Stanbic
IBTC Bank which related to SBSA licensing

*Included in the claims above are foreign currency denominated claims converted at the Group's closing exchange rates.

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 253

back the purchased software to Stanbic pursuant to the SPA. The transactions and SIBTC is currently exploring various
IBTC Bank in consideration of an annual the options for payment involved in the options which are expected to result in a
license fee payment. SPA as well as the escrow accounts are separation of parts of its IT infrastructure
currently being reviewed by Management from those of SBSA. Any approvals
On 27 December 2013, NOTAP approved in conjunction with SBSA based on the that will be required from the Board,
and registered the Affiliate Software final judgment of the Court of Appeal shareholders, NOTAP and the CBN in
Licence with a total technology fee not declaring that the SPA was not illegal. relation to the option(s) adopted will be
exceeding US$10.3 million (N3.76 billion) obtained at the relevant time.
expiring on 31 May 2015 (Certificate Below is a consideration of the
No. NOTAP/AG/FI/1280/12/217). An accounting implications. 30.7 Obligations not recognised on
amount of US$ 9.6 million was remitted to transactions with pending regulatory
SBSA on account of such authorisation. The SPA agreement involved SBSA paying registration
Following the expiration of NOTAP’s ZAR 189million to SIBTC to acquire the In compliance with the rules of the
approval for this license, no additional Finacle V1 software in 2012. The proceeds Financial Reporting Council of Nigeria
accruals have been made in relation to of the sale have since that time been held (“FRC”), the group has not recognised in
the fees payable for the use of the in an interest bearing deposit account these financial statements its obligations
software, which situation was based on with SBSA. As at 31 December 2018, under some agreements where regulatory
the Bank’s inability to obtain NOTAP’s the balance in the account was ZAR 280 registration was yet to be received as at
further approval on the said affiliate million (made up of ZAR 189 million plus the end of the reporting period.
software agreement. ZAR 91 million accrued interest up to 31
December 2018). SIBTC is yet to fulfill The details of the affected transactions
The approval received from NOTAP for the full conditions of the SPA agreement, and the associated obligations are
the payment of US $10.3 million under which will result in the release of the as follows:
the affiliate software agreement (“ASA”) deposit in escrow.
is related to the software sold to SBSA

Type of agreement Transferor Filing Date Registration status Contingent liability

31 Dec 2018 31 Dec 2017
Nmillion Nmillion

Information Technology Agreement between Stanbic External Pending - 353
Pending
IBTC Bank PLC and Infosys Technologies Limited (Online

Procurement Request)

Finacle ITMS Integration Programme (Cash Management External - 46
Solution): Agreement with Infosys Technologies Limited
and Affiliate Software License Agreement Nucleus
Software Limited India.

Finacle Production Support agreement between Edge External April 2018 Pending 167 69
Verve Systems Limited and Stanbic IBTC Bank PLC Pending - 85

STANBIC-NG V3 Finacle Enhancement and External 64 22
Implementation agreement between EdgeVerve Systems
LIMITED and Stanbic IBTC Bank PLC, Nigeria. - 424
-5
Supplemental to the Master Agreement between Wizzit External October 2018 Pending 404 -
Technologies and Stanbic IBTC Bank PLC for April 2017 -
April 2020

Third amendment to the Master Software License External Pending
Agreement Dated July 9 2012 Pending
December 2018 Pending
Software License Agreement with SunTec Business External
Solutions FZE

Affiliate Service Request between Edgeverve systems External
and Stanbic IBTC Bank PLC for Dec 2018 - Nov 2020
(This agreement would enable Stanbic IBTC pay for
outstanding payments owed to Edgeverve from inception
to 2017)

Service Request between BizWiz consulting and Standard External December 2018 Pending 5-
Bank as at February 2018 December 2018 Pending 6-

Agreement Extension to the Compliance Validation External
Services as at 27 June 2011

254 Stanbic IBTC Annual report for the year ended 31 December 2018

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
For the year ended 31 December 2018

Third party funds under management and funds under administration
Members of the group provide discretionary and non-discretionary investment management services to institutional and private investors.

Commissions and fees earned in respect of trust and management activities performed are included in profit or loss.

Assets managed and funds administrated on behalf of third parties include:

Pension funds 31 Dec 2018 31 Dec 2017
Unit Trusts / Collective investments Nmillion Nmillion
Trusts and Estates
Assets held under custody – custodial services 2,688,953 2,312,872
532,621 400,928
31. Income statement information 29,578 32,164

31.1 Interest income 4,892,089 5,643,213
8,143,241 8,389,177
Interest on loans and advances to banks
Interest on loans and advances to customers Group Company
Interest on investments
31 Dec 2018 31 Dec 2017 31 Dec 2018 31 Dec 2017
Nmillion Nmillion Nmillion Nmillion

3,455 2,340 --

64,083 61,284 --

50,844 59,287 271 45

118,382 122,911 271 45

All interest income reported above relates to financial assets not carried at fair value through profit or loss. Interest income for the year ended 31 December 2018
includes N437 million relating to the unwinding of discount element of credit impairments.

Included in interest income is N880 million (2017: N438 million) earned from related party transactions. See note 36.3.

31.2 Interest expense Group Company

Savings accounts 31 Dec 2018 31 Dec 2017 31 Dec 2018 31 Dec 2017
Current accounts Nmillion Nmillion Nmillion Nmillion
Call deposits
Term deposits 1,611 1,150 --
Interbank deposits
Borrowed funds 3,796 4,694 --

2,254 1,525 --

20,208 21,679 --

3,431 4,450 --

8,873 5,826 - 1,095

40,173 39,324 - 1,095

All interest expense reported above relates to financial assets not carried at fair value through profit or loss.
Included in interest expense reported above is N1,284 million (2017: N2,715 million) from related party transactions. See note 36.3.

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 255

31.3 Net fee and commission revenue Group Company

Fee and commission revenue 31 Dec 2018 31 Dec 2017 31 Dec 2018 31 Dec 2017
Account transaction fees Nmillion Nmillion Nmillion Nmillion
Card based commission
Brokerage and financial advisory fees 71,219 59,430 2,171 1,491
Asset management fees
Custody transaction fees 3,530 3,606 --
Electronic banking
Foreign currency service fees 3,459 3,294 --
Documentation and administration fees
Other fee and commision revenue 6,624 5,417 --
Fee and commission expense
41,154 33,928 --

3,826 2,951 --

2,062 1,220 --

7,325 6,207 --

1,906 1,703 --

1,333 1,104 2,171 1,491

(1,374) (341) --

69,845 59,089 2,171 1,491

Other fee income for Group includes commission on sale of government securities, agency fee, account statement fee, funds transfer charges, salary processing and
administration charges, reference letter charges, and cash withdrawal charges.

Other fee and commission income for the Company of N2,164 million (2017: N1,477 million) represents fee income earned by the company from technical and
management service provided to subsidiaries.

31.4 Trading revenue 9,306 11,085 - -
Foreign exchange
Fixed income 23,878 18,849 - -
Interest rates
Equities (1,872) (786) - -

(1) 0 - -

31,311 29,148 - -

Included in trading revenue reported above is a trading revenue amount of N83million (trading loss 2017: N4,143million) from related party transactions.
See note 36.3 for details.

Trading revenue reported above includes trading income of N19,435 million (2017: trading loss of N10,838 million) relating to derivative transactions.
Included in trading income / loss from derivatives is N8,827 million (2017: N9,598 million) relating to unobservable valuation difference recognised during the period.
As at period end, unobservable valuation difference yet to be recognised amounted to N4,359 million (2017: N4,500 million) (see note 10.7).

256 Stanbic IBTC Annual report for the year ended 31 December 2018

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
For the year ended 31 December 2018

31.5 Other revenue Group Company

Dividend income (see (a) below) 31 Dec 2018 31 Dec 2017 31 Dec 2018 31 Dec 2017
Gains/loss on disposal of property and equipment Nmillion Nmillion Nmillion Nmillion
Others (see (b) below)
261 112 16,941 28,092
a) Dividend income was earned from the following investees:
Stanbic IBTC Pension Managers Limited 71 209 - 119
Stanbic IBTC Asset Management Limited
Stanbic IBTC Ventures Limited 1,116 624 80 175
Stanbic IBTC Capital Limited
Stanbic IBTC Stockbrokers Limited 1,448 945 17,021 28,386
Stanbic IBTC Insurance Limited
Stanbic IBTC Trustees Limited - - 8,823 20,912
Stanbic IBTC Bank PLC
Other equity investments - - 1,380 2,000

- - - 900

- - 1,185 800

- - 450 280

- - - 100

- - 103 100

- - 5,000 3,000

261 112 - -

261 112 16,941 28,092

b) I ncluded in others is gains from disposal of Treasury bills, investment administration charges, and distribution received from
liquidation of unquoted equity investments.

31.6 Credit impairment charges

Credit impairments raised/(released) in terms of IAS 39

Specific impairments - 28,235 - -

Portfolio impairments - (254) - -

Net expected credit losses raised and released for financial investments 191

Net expected credit losses raised and released for loans and advances (69)

Net expected credit losses raised and released on off balance sheet exposures (11)

Recoveries on loans and advances previously written off (3,051) (2,404) - -

Total credit impairment charge (2,940) 25,577 - -

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 257

Group Company

31.7 Staff costs 31 Dec 2018 31 Dec 2017 31 Dec 2018 31 Dec 2017
Short term – salaries and allowances Nmillion Nmillion Nmillion Nmillion
Staff cost: below-market loan adjustment
Equity-linked transactions (note 31.11) 40,504 33,177 1,311 170

54 180 8 24

2,469 2,925 343 396

43,027 36,282 1,662 590

Included in staff costs is N513 million (2017: N344 million) representing salaries and allowances paid to executive directors for the year. See note 32.

31.8 Other operating expenses 6,933 5,984 - -
Information technology 1,310 1,205 - -
Communication expenses 4,170 4,517 - -
Premises and maintenance 4,432 4,129 346 308
Depreciation expense - -
Amortisation of intangible assets 45 46 - -
Deposit insurance premium 4,212 2,482 - -
AMCON expenses (see (i) below) 7,836 5,034 - -
Other insurance premium 56 49
Auditors renumeration 929 858 4 6
Non-audit service fee (see (ii) below) 387 340 - -
Professional fees - -
Administration and membership fees 44 19 - -
Training expenses 1,181 850 - -
Security expenses 2,820 3,711 - -
Travel and entertainment 1,643 1,139 - -
Stationery and printing 1,676 1,484 - -
Marketing and advertising 1,897 1,773 - -
Pension administration expense 1,182 - -
Penalties and fines 586 2,982 175 142
Donations 3,336 215 - -
Operational losses 243 230
Directors fees 377 38 - -
Provision for legal costs, levies and fines 1,902 437 - -
Impairment (Recovery) of other financial assets - -
Motor vehicle maintenance expense 233 25 - -
Bank Charges 196 401 117 71
Indirect tax (VAT) 429 3,538 860 (114)
Others 300 3,068 1,801 692
(232) 764
1,556 1,496
1,831 828
950 1,199
1,595 49,744
52,574

(i) AMCON expenses

AMCON charges (0.5% of total assets on and off balance sheet items) is a statutory levy by the Asset Management Corporation of
Nigeria on all Commercial Banks operating in Nigeria.

258 Stanbic IBTC Annual report for the year ended 31 December 2018

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
For the year ended 31 December 2018

31 Income statement information (continued)

(ii) Non audit services

The details of services provided by the auditors (Messrs KPMG Professional Services) during the period, other than statutory audit of
financial statements, are as follows:

Group Company

31 Dec 2018 31 Dec 2017 31 Dec 2018 31 Dec 2017

Nmillion Nmillion Nmillion Nmillion

Advisory services – remuneration survey 14 1
IFRS 9 assurance service
Professional fees on Scrip dividend issue 19 - --
Audit of deposit insurance certification
Advisory services – general advice on compensation 2- 2-
Professional fees on review of ISA 810
Assurance services – ISAE 3000 review of controls at Stanbic IBTC Nominees Limited 43 3
CBN corporate governance and whistle blowing guidelines
Banking Industry Remuneration Survey exercise 3 1
Audit services – audit procedures on BA 610 reporting for SBSA
2 2

-4 --

14 -

1 1-

44 --

45 19 46

31.9 Transactions requiring regulatory approval

The rules of Financial Reporting Council of Nigeria require that transactions or agreements requiring registration by regulatory body
in Nigeria shall only be recognised in the financial statements to the extent that approval is obtained. For transactions recognised,
the relevant registration details are required to be disclosed.

The group obtained approval of National Office for Technology and Promotion (“NOTAP”) for some information technology project,
the cost of which have been recognised in these financial statements. Relevant details are disclosed as follows:

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 259

31.9 Transactions requiring regulatory approval (continued)

Amounts recognised in
financial statements

Transaction involved Registration Approved basis Certificate 31 Dec 2018 31 Dec 2017
certificate number and amount validity Nmillion Nmillion
(i) Software License Agreement with SunTec NOTAP/AG/ $14,776 01 January 2015 till
Business Solutions FZE FI/1280/19/108 Bulk remittance of 01 August 2018 5-
$1,269,292.66
(ii) Addendum to Affiliate Agreement between NOTAP/AG/ Bulk remittance of 03 March 2016 till 111 -
Nuclear Software Exports Limited and FI/1280/27/87 $1,269,292.66 02 March 2019
Stanbic IBTC Bank PLC 9-
NOTAP/AG/ $41,363 03 March 2016 till
(iii) Addendum to Affiliate Agreement between FI/1280/27/87 02 March 2019 15 18
Nuclear Software Exports Limited and $1,927,617
Stanbic IBTC Bank PLC NOTAP/AG/ 30 April 2017 till 702 1,125
FI/1280/26/123 $665,662 29 April 2020
(iv) S upplemental to the Master Agreement Bulk remittance of 242 220
between Wizzit Technologies and Stanbic NOTAP/AG/ $306,497 01 March 2018 till
IBTC Bank PLC as at May 2017 FI/1280/29/126 28 February 2021 - 101
$1,269,293
(v) Ammendment to the Microsoft Enterprise NOTAP/AG/ 01 January 2018 40 14
Volume Licensing agreement between FI/1280/28/143 till 31 December 1,124 1,478
Microsoft Ireland and Stanbic IBTC Bank 2018
PLC NOTAP/AG/
FI/1280/17/528 02 May 2017 to 02
(vi) Amendment to the Master Software November 2017
License Agreement between Edgverve NOTAP/AG/
Systems Limited India and Stanbic IBTC FI/1280/27/87 03 March 2016 till
Bank PLC 02 March 2019

(vii) Software License and Support
Agreement between Intellinx Limited
and Stanbic IBTC Bank PLC

(viii) Addendum to Affiliate Agreement
between Nuclear Software Exports
Limited and Stanbic IBTC Bank PLC

260 Stanbic IBTC Annual report for the year ended 31 December 2018

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
For the year ended 31 December 2018

31.10 Operating leases

The group leases a number of branch and office premises under operating leases. The lease period varies, and typically run for a period of
3 to 10 periods, with an option to renew the lease after that date. Lease payments are increased periodically (usually every three periods)
to reflect market rentals.

At period end, the future minimum lease payments under non-cancellable operating leases were payable as follows:

Group Company

31 Dec 2018 31 Dec 2017 31 Dec 2018 31 Dec 2017
Nmillion Nmillion Nmillion Nmillion

Less than one period 62 63 --
Between one and five periods
More than five periods 140 193 --

-- --

202 256 --

31.11 Share-based payment transactions

The group operates a number of share- based payment arrangements under which the entity receives services from employees as a
consideration for equity instrument of the group or cash settlement based on equity instrument of the group.

At 31 December 2018, the group had the following share-based arrangements.

(a) Share appreciation rights based on equity instrument of Stanbic IBTC Holdings PLC (Stanbic IBTC Equity Growth Scheme)
- cash settled

(b) Share options and appreciation rights based on equity instrument of Standard Bank Group (Parent company share incentive schemes)
- equity settled.

(c) Deferred bonus scheme.

The expenses and liabilities recognised in respect of the share based arrangements are as follows:

Expenses recognised in staff costs 31 Dec 2018 31 Dec 2017
Stanbic IBTC Equity Growth Scheme (credit)/charge Nmillion Nmillion
Parent company share incentive schemes**
Deferred bonus scheme (“DBS”) 301 1,520
47 (7)

2,121 1,412
2,469 2,925

Liabilities recognised in other liabilities 31 Dec 2018 31 Dec 2017
Stanbic IBTC Equity Growth Scheme Nmillion Nmillion
Deferred bonus scheme
1,539 1,265
2,746 1,043
4,285 2,308

**T he parent company share incentive scheme is equity settled. As such, a corresponding increase in equity has been recognised. See Statement of changes in equity
for further details.

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 261

a) Stanbic IBTC Equity Growth Scheme

On 1 March 2010 and 1 March 2011, the Group granted share appreciation rights to key management personnel that entitles
the employees to cash value determined based on the increase in share price of Stanbic IBTC Holdings PLC between grant
date and exercise date. The object and purpose of the scheme is to promote an identity of interest between the group and its senior
employees, to attract, retain and motivate skilled and competent personnel with high potential to influence the direction, growth and
profitability of the group by enhancing leadership commitment and drive to grow the group market value and position in support of
shareholder interests.

The provision in respect of liabilities under the scheme amounts to N1,539 million at 31 Dec 2018 (Dec 2017: N1,265 million).

The terms and conditions of the grants are as follows.

Vesting category Period % vesting Expiry
Type A 3, 4, 5 50, 75, 100 10 Years

Reconciliation Units 31 Dec 2017
Units outstanding at beginning of the period 31 Dec 2018
Granted 59,113,755
Forfeited 25,327,713 -
Exercised -
Lapsed - (186,916)
Units outstanding at end of the period (33,599,126)
(1,074,611)
- -
25,327,713
24,253,102

The fair value of share appreciation rights is determined using Black-Scholes formula. The inputs used in the measurement of their fair value
were as follows:

Weighted average fair value at grant date (N) – 31 Dec 2018 31 Dec 2017
Rights granted 1 March 2010
Weighted average fair value at grant date (N) – 15.30 15.30
Rights granted 1 March 2011
17.83 17.83
Expected life (periods) 1.80 3.19
36.69
Expected volatility (%) 12.12 37.46
1.28 13.88
Risk-free interest rate (%)
1.57
Dividend yield (%)

262 Stanbic IBTC Annual report for the year ended 31 December 2018

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
For the year ended 31 December 2018

31.11 Share-based payment transactions (continued)

b. P arent company share incentive schemes
Share options and appreciation rights
A number of employees of the group participate in the Standard Bank Group’s share schemes. Standard Bank Group (“SBG”) has
two equity-settled schemes, namely the Group Share Incentive Scheme and the Equity Growth Scheme. The Group Share Incentive
Scheme confers rights to employees to acquire ordinary shares at the value of the SBG share price at the date the option is granted.
The Equity Growth Scheme was implemented in 2005 and represents appreciation rights allocated to employees. The eventual value
of the right is effectively settled by the issue of shares equivalent in value to the value of the rights.

The two schemes have five different sub-types of vesting categories as illustrated by the table below:

Type A period % vesting Expiry
Type B 3, 4, 5 50, 75, 100 10 Years
Type C 5, 6, 7 50, 75, 100 10 Years
Type D 2, 3, 4 50, 75, 100 10 Years
Type E 2, 3, 4 33, 67, 100 10 Years
3, 4, 5 33, 67, 100 10 Years

A reconciliation of the movement of share options and appreciation rights is detailed as follows:
b(i) Group share incentive scheme – share options

Option price range Number of options
31 Dec 2018 31 Dec 2017
31 Dec 2018 31 Dec 2018
(ZAR) (Naira)

Options outstanding at beginning of the period 104.53 2,647 44,850 -
Transfers 62.39 - 92.00 1580-2329 15,625 65,900
Exercised (7,350) (21,050)
Lapsed
Options outstanding at the end of the period - -
53,125 44,850

The weighted average SBG share price for the period to 31 December 2018 period end was ZAR193.31 (N4,895) (December 2017: ZAR157.27 (N4,229)).

The following options granted to employees had not been exercised at 31 December 2018:

Option price range Weighted average price

Number of ordinary shares (ZAR) (Naira) (ZAR) (Naira) Option expiry period
15,625
37,500 104.53 1,633,281 92.00 2,329.44 period to 31 December 2018
53,125
98-103.03 2,581-2,714 102.18 2,587.20 period to 31 December 2021

The following options granted to employees had not been exercised at 31 December 2017:

Option price range Weighted average price

Number of ordinary shares (ZAR) (Naira) (ZAR) (Naira) Option expiry period
6,100
1,250 92.00 561,200 92.00 2,423.28 year to 31 December 2018
37,500
44,850 62.39 77,988 62.39 1,643.35 year to 31 December 2019

98-103.03 2,581 - 2,714 101.62 2,676.67 year to 31 December 2021

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 263

31.11 Share-based payment transactions (continued) Appreciation right price range Number of rights
b(ii) Equity Growth Scheme - Appreciation rights 31 Dec. 2018 31 Dec. 2017
31 Dec. 2018 31 Dec. 2018
Rights outstanding at beginning of the period
Transfers (ZAR) (Naira)
Excercised
Lapsed 36,026 -
Rights outstanding at end of the period - 113,230
- 77,204)
-
-
36,026 36,026

The following rights granted to employees had not been exercised at 31 December 2018:

Number of rights Price range Weighted average price
(ZAR)
15,005 156.96 (Naira) (ZAR) (Naira) Expiry period
21,021 122.24 3,974 period to 31 December 2025
36,026 3,095 156.96 3,974 period to 31 December 2026

122.24 3,095 Expiry period
period to 31 December 2025
The following rights granted to employees had not been exercised at 31 December 2017: period to 31 December 2026

Number of rights Price range Weighted average price
(ZAR)
15,005 156.96 (Naira) (ZAR) (Naira)
21,021 122.24 4,134
36,026 3,220 156.96 4,134

122.24 3,220

(c) Deferred bonus scheme (“DBS”) alignment of shareholder and management final payment of the deferred bonus is
interests by creating a closer linkage calculated with reference to the Standard
It is essential for the group to retain between risk and reward, and also Bank Group share price at payment date.
key skills over the longer term. This is facilitates retention of key employees. To enhance the retention component of
done particularly through share-based the scheme, additional increments on the
incentive plans. The purpose of these All employees, who are awarded short- deferred bonus become payable at vesting
plans is to align the interests of the term incentives over a certain threshold, and one period thereafter. Variables on
group, its subsidiaries and employees, are subject to a mandatory deferral of a thresholds and additional increments in the
as well as to attract and retain skilled, percentage of their cash incentive into DBS are subject to annual review by the
competent people. the DBS. Vesting of the deferred bonus remuneration committee, and may differ
occurs after three periods, conditional on from one performance period to the next.
The group has implemented a scheme to continued employment at that time. The
defer a portion of incentive bonuses over
a minimum threshold for key management
and executives. This improves the

264 Stanbic IBTC Annual report for the year ended 31 December 2018

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
For the year ended 31 December 2018

31.11 Share-based payment the Deferred Bonus Scheme 2012 is The award is indexed to the SBG’s share
transactions (continued) to encourage a longer-term outlook in price and accrues notional dividends during
Deferred bonus scheme 2012 business decision-making and closer the vesting period, which are payable on
(DBS 2012) alignment of performance with vesting. The awards vest in three equal
In 2012, changes were made to the DBS long-term value creation. amounts at 18 months, 30 months and 42
to provide for a single global incentive months from the date of award. The final
deferral scheme across the Standard All employees granted an annual payout is determined with reference to the
Bank Group (“SBG”). The purpose of performance award over a threshold SBG’s share price on vesting date.
have part of their award deferred.

Reconciliation Units 31 Dec 2017
Units outstanding at beginning of the period 31 Dec 2018
Granted 154,979
Exercised 233,681 -
Transfers 25,431
Forfeited (202,298)
Lapsed (157,680) 286,089
Units outstanding at end of the period 34,351 (5,089)
(9,804) -
- 233,681
125,979

Weighted average fair value at grant date (ZAR) 220.97 122.24
Expected life (periods) 2.51 2.51

d. Cash settled deferred bonus scheme The award units are denominated in Awards vest in three equal tranches at
(“CSDBS”) employee’s host countries’ local currency, 18 months, 30 months and 42 months
Employees granted an annual the value of which moves parrallel to the from the date of award. Final payout is
performance award over a threshold have changes in the price of the SBG shares determined with referenace to SBG share
part of their award deferred. In addition, listed on the JSE and accrue notional price on vesting date.
the group makes special awards of CSDBS dividends over the vesting period which
to qualifying employees. are payable on vesting.

Naira Units Pound Units Rand Units

31 Dec. 2018 31 Dec. 2017 31 Dec. 2018 31 Dec. 2017 31 Dec. 2018 31 Dec. 2017

Reconciliation 4,067,869 - 97 - 7,573 -
Units outstanding at beginning of the period 3,874,557 4,140,971 114 97 23,645 -
Granted (208,305) -
Forfeited (73,102) - -- 7,573
Transferred to group companies 78,905 - - -- -
Exercised (1,350,807) - (32) - (2,524) 7,573
Units outstanding at end of the period 179 97 28,694
6,462,219 4,067,869

Weighted average fair value at grant date (ZAR) 220.97
Expected life at grant date (years) 2.51

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 265

e. Performance reward plan (“PRP”) of those executives with those of The PRP is settled in shares to the
A new performance driven share plan shareholders and to act as an attraction employee on the applicable vesting dates
commenced in March 2014 which and retention mechanism in a highly together with notional dividends that
rewards value delivered against specific competitive marketplace for skills. The are settled in cash. The shares that vest
targets. The PRP incentivises a group of PRP operates alongside the existing (if any) and that are delivered to the
senior executives to meet the strategic conditional, equity-settled long-term employee are conditional on the pre-
long-term objectives that deliver value plans, namely the EGS, GSIS and DBS. specified performance metrics.
to shareholders, to align the interests

Reconciliation Units 31 Dec 2017
Units outstanding at beginning of the period 31 Dec 2018
Granted 12,300
Cancelled 165,300 67,200
Transferred to group companies 75,726 (24,528)
Exercised - 142,600
Units outstanding at end of the period - (32,272)
165,300
(44,926)
196,100

Weighted average fair value at grant date (ZAR) 220.97 155.95
Expected life at grant date (periods) 3.00 3.00

f. Quanto stock scheme period (generally three periods), normally additional six months holding period after
Since 2007 Standard Bank PLC commencing the period in which these vesting. Thereafter half of the remaining
has operated a deferred incentive are awarded and communicated to incentive (non-deferred portion) is paid
arrangement in the form of the Quanto employees. immediately in cash and the other half is
stock unit plan. Qualifying employees, delivered in Quanto stock units with a six
with an incentive award above a set Special terms apply to employees month vesting period.
threshold are awarded Quanto stock designated by the Prudential Regulatory
units denominated in USD for nil Authority (“PRA”) as Code Staff. For The change in liability due to the change
consideration, the value of which moves these employees the deferred portion of in the SBG share price, is hedged through
in parallel to the change in price of the the incentive is delivered in Quanto stock the use of equity options designated as
SBG shares listed on the JSE. The cost units with three period vesting and an cash flow hedges.
of the award is accrued over the vesting

Reconciliation Units 31 Dec 2017
Units outstanding at beginning of the period 31 Dec 2018
Exercised 147,000
Transfers 53,000 (94,000)
Units outstanding at end of the period (53,000)
-
- 53,000
-

266 Stanbic IBTC Annual report for the year ended 31 December 2018

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
For the year ended 31 December 2018

Quanto stock units granted not yet exercised at period end: Number of units 31 Dec 2017
31 Dec 2018
Unit expiry period -
period to 31 December 2016 -
period to 31 December 2017 - 53,000
period to 31 December 2018 - 53,000
Units outstanding at end of the period -

32. Emoluments of directors

Group Company

31 Dec 2018 31 Dec 2017 31 Dec 2018 31 Dec 2017
Nmillion Nmillion Nmillion Nmillion

Executive directors 513 344 125 91

Emoluments of directors in respect of services rendered1: 429 401 243 230
While directors of Stanbic IBTC Holdings PLC
32 29 9 8
as directors of the company and/or subsidiary companies 329

otherwise in connection with the affairs of
Stanbic IBTC Holdings PLC or its subsidiaries

Non-executive directors

Emoluments of directors in respect of services rendered:
While directors of Stanbic IBTC Holdings PLC

as directors of the company and/or subsidiary companies

otherwise in connection with the affairs of
Stanbic IBTC Holdings PLC or its subsidiaries

Pensions of directors and past directors

974 774 377

1 I n order to align emoluments with the performance to which they relate, emoluments reflect the amounts accrued in respect of each period and not the amounts paid.

Emoluments disclosed above include amounts paid to: 31 Dec 2018 31 Dec 2017
(i) the chairman Nmillion Nmillion
(ii) the highest paid director
38 31

125 91

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 267

33. Taxation Group Company

Income tax (note 33.1) 31 Dec 2018 31 Dec 2017 31 Dec 2018 31 Dec 2017
Nmillion Nmillion Nmillion Nmillion

13,712 12,785 501 2,380

13,712 12,785 501 2,380

In accordance with Nigerian tax regime, dividends received by the company from its subsidiaries are exempted from tax. Hence, the company has no taxable profit as a
result of tax exempt dividends. The company has also not been subject to minimum tax, (in line with the provisions of the Nigerian tax laws - Section 33 of Companies
Income Tax Act CAP C21 LFN 2007 (as amended)) as it has more than 25% of imported capital. However, the entity is subjected to tax on management fees earned from
subsidiaries for its managerial oversight and strategic functions.

33.1 Income tax 13,712 12,785 501 2,380
Current period 14,008 13,058 501 2,389
Current tax
Deferred tax (296) (273) - (9)
Taxation per statement of profit or loss 13,712 12,785 501 2,380
Income tax recognised in other comprehensive income
27 83 --
Deferred tax 27 83 --
Current tax --
Taxation per total comprehensive income - - 501 2,380
13,739 12,868

33.2 Rate reconciliation Group Company

Rate reconciliation 31 Dec 2018 31 Dec 2017 31 Dec 2018 31 Dec 2017
The total tax charge for the period as a percentage of profit before taxation % % % %
Information technology levy
Education tax 14 19 39
The corporate tax charge for the period as a percentage of profit before tax 11 --
Tax relating to prior periods 11 --
Net tax charge 39
The charge for the period has been reduced/(increased) 16 21 --
as a consequence of: -- 39
Non-taxable dividends
Non-taxable interest 16 21 -
WHT on Dividend not distributed & other taxes not at 30% 32 31
Other Non-deductible expense --
Other non-taxable income 18 25 --
IT levy paid
Temporary difference not accounted for in deferred tax asset - --
Other permanent differences (1)
Standard rate of tax --
97 --
- 35 40
(9) (16)
(1) (3)
32 34

Temporary differences not accounted for in deferred tax asset relates to temporary differences relating to mainly tax losses carried forward for which no deferred tax asset
is recognized although the tax losses will continue to be available to offset future tax liability.
The tax law permits the Company to continue to carry forward the tax losses indefinitely.

268 Stanbic IBTC Annual report for the year ended 31 December 2018

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
For the year ended 31 December 2018

33 Taxation (continued)
33.3 Income tax recognised in other comprehensive income
The table below sets out the amount of income tax relating to each component within other comprehensive income:

Group Before tax Tax (expense)/benefit Net of tax
31 December 2018 Nmillion Nmillion Nmillion
Net change in fair value of FVOCI financial assets
Realised fair value adjustments on FVOCI financial assets transferred to (2,203) - (2,203)
profit or loss
Related tax (783) - (783)
- 27 27
31 December 2017 27
Net change in fair value of available-for-sale financial assets (2,986) (2,959)
Realised fair value adjustments on available-for-sale financial assets
transferred to profit or loss 4,294 - 4,294
Related tax
(63) - (63)
4,231 83 83
83
4,314

34. Earnings per ordinary share

Group Company

31 Dec 2018 31 Dec 2017 31 Dec 2018 31 Dec 2017

The calculations of basic earnings per ordinary share has been based on the following 72,087 46,195 15,499 25,165
profit attributable to ordinary shareholders and the weighted average number of 10,241 10,049 10,241 10,049
ordinary shares outstanding:
Earnings attributable to ordinary shareholders (Nmillion) 704 460 151 250

Weighted average number of ordinary shares in issue (million)

Basic earnings per ordinary share (kobo)

Diluted earnings per ordinary share 72,087 46,195 15,499 25,165
The calculation of diluted EPS has been based on the following profit attributable to 10,241 10,049 10,241 10,049
ordinary shareholders and weighted-average number of ordinary shares outstanding
after adjustment for the effects of all dilutive potential ordinary shares. 10,241 - 10,241 -
Earnings attributable to ordinary shareholders (Nmillion) 704 10,049 151 10,049
Weighted average number of ordinary shares in issue (million)
Effect of scrip dividend shares in issue 460 250
Weighted-average number of ordinary shares (diluted) at 31 December 2018 (million)
Diluted earnings per ordinary share (kobo)

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 269

35. Statement of cash flows notes Group Company

35.1 (Increase)/decrease in assets 31 Dec 2018 31 Dec 2017 31 Dec 2018 31 Dec 2017
Trading assets Nmillion Nmillion Nmillion Nmillion
Pledged assets
Loans and advances 67,128 (134,624) - -
Other assets (99,303) (14,937) - -
Restricted balance with the Central Bank (67,244) (37,341) - -
(28,345) (10,222) (1,943) 78
(57,233) (61,749) - -

(184,997) (258,873) (1,943) 78

35.2 Increase/(decrease) in deposits and other liabilities 153,597 198,159 - -
Deposit and current accounts 63,235 57,124 - -
Trading liabilities (26,884) 57,990 716 1,157
Other liabilities and provisions 189,948 716 1,157
313,273
35.3 Cash and cash equivalents - Statement of cash flows 15,533 7,545
Cash and cash equivalents (note 7) 455,773 401,348 - -
Less: restricted balance with the Central Bank of Nigeria (228,572) (171,339)
Cash and cash equivalents at end of the period 230,009 15,533 7,545
227,201
- -
35.4 Effect of exchange rate changes on cash and cash equivalents 3,339 (1,068) - -
Currency (69) 221 - -
USD (81) 106 - -
EUR 9 (4) - -
GBP
Other currency 3,198 (745)
Effect of exhange rate

35.5 Net derivative assets (19,234) 3,265 - -
Movement in derivative assets
Movement in derivative liabilities 1,560 (9,196) - -
Unobservable valuation difference
8,827 9,598 - -

(8,847) 3,667 - -

270 Stanbic IBTC Annual report for the year ended 31 December 2018

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
For the year ended 31 December 2018

36. Related party transactions 36.2 Subsidiaries

36.1 Parent and ultimate controlling party Details of effective interest in subsidiaries are disclosed below,
The company is 65.35% owned by Stanbic Africa Holdings and also in Note 13.
Limited, which is incorporated in the United Kingdom. The
ultimate parent and controlling party of the group/ company % holding
is Standard Bank Group Limited, incorporated in South Africa.
Stanbic IBTC Holdings PLC has 9 direct subsidiaries and 2 indirect Direct subsidiaries
subsidiaries as listed under note 36.2 below.
Stanbic IBTC Bank PLC 100%
Stanbic IBTC Holdings PLC (“Holdco”) is related to other
companies that are fellow subsidiaries of Standard Bank Group Stanbic IBTC Ventures Limited (“SIVL”) 100%
Limited. These include Standard Bank Isle of Man Limited,
Standard Bank of South Africa (“SBSA”), Stanbic Bank Ghana Stanbic IBTC Capital Limited (“SICL”) 100%
Limited, CfC Stanbic Bank Kenya Limited, Stanbic Bank Botswana,
Stanbic Bank Uganda Limited, and Standard Bank (Mauritius) Stanbic IBTC Asset Managers Limited (“SIAML”) 100%
Limited. ICBC Standard Bank PLC, which is an associate of
Standard Bank Group Limited, is also a related party. Stanbic IBTC Pension Managers Limited (“SIPML”) 88.24%

Stanbic IBTC Investments Limited (“SIIL”) 100%

Stanbic IBTC Stockbrokers Limited (“SISL”) 100%

Stanbic IBTC Trustees Limited (“SITL”) 100%

Stanbic IBTC Insurance Brokers Limited (“SIIBL”) 75%

Indirect subsidiaries
Stanbic IBTC Bureau De Change Limited
Stanbic IBTC Nominees Limited

36.3 Balances with Standard Bank of South Africa (“SBSA”) and other related parties
In the normal course of business, current accounts are operated and placements of foreign currencies and trades between currencies
are made with SBSA and other entities within the Standard Bank Group.

The relevant balances are shown below:

Group Company

Note 31 Dec 2018 31 Dec 2017 31 Dec 2018 31 Dec 2017
Nmillion Nmillion Nmillion Nmillion

Amounts due from related parties 12 8,546 9,234 - -
Loans to banks 7,545
Current account balances 7 10,586 19,641 22,577
Derivatives -
Other assets 10.6 169 973 - 1,365
8,910
15 543 15 2,464

19,844 29,863 25,041

a. L oans to banks: These represent foreign currency placements with Standard Bank Group entities. Placements are usually
denominated in US dollars and Rands. USD interest rate ranges between 2.99% - 3.91%, while Rand rate ranges between 6.82% -
7.07%. Tenor is usually short ranging between 1-6 months. The contract terms are based on normal market terms. Details per
counterparty are as follows:

Standard Bank of South Africa (see note i below) 7,088 8,839 - -

ICBC Standard Bank PLC 1,458 395 - -

8,546 9,234 - -

(i) Included in the balance with SBSA is N7,088 million (Dec 2017: N7,027 million) representing amount received from SBSA under the
Sale, Purchase Agreement for Finacle banking software. The funds are placed in an escrow account and not available for use by the
group on a day to day basis. Interest rate applicable on the balance as at period end was 6.82%.

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 271

b. C urrent account balances (Group): These represent trade d. O ther assets (Group): These represent reimbursable
related balances held with SBSA and are particularly used expenses recoverable from related parties. No specific
for letters of credit and other foreign trade transactions. impairments have been recognised in respect of the amount.
The balances are repayable on demand and usually non
interest bearing. Other assets (Company): These represent receivable from
subsidiary entities in respect of reimbursable expenses and
Current account balances (Company): These relate to management service agreement. There exist technical and
demand deposit held with Stanbic IBTC Bank PLC. The deposit management service agreements between the company and
is non interest bearing and the terms are based on normal some of its subsidiaries. Under the agreement, the company
market terms. provides technical expertise and management skills to the
subsidiaries in functional areas including marketing and
c. Derivatives: These represent fair value of currency swap and branding, internal audit, human resources, compliance, financial
foreign exchange forward transactions with related parties. control, and information technology. In return, subsidiaries pay
The transaction includes EUR/USD swap, USD/ZAR swap, and fee based on percentage of their commission income to the
USD/NGN swap with a combined notional principal of N107.4 company. The percentage ranges from 2% to 10% of profit
billion (Dec 2017: N52.96 billion). The contracts maturity before tax or commission income.
ranges from one month to 1 year.

Group Company

Note 31 Dec 2018 31 Dec 2017 31 Dec 2018 31 Dec 2017
Nmillion Nmillion Nmillion Nmillion

Amounts due to related parties 21 36,207 38,843 --
Deposits and current accounts 10.6 87 186 --
Derivatives - --
Trading liabilities 9.2 - --
Subordinated debt 23 14,643 13,306 --
Other borrowings 22 43,825 40,406 32 227
Other liabilities 26 5,892 32 227
17
100,654 92,758

e. D eposits and current accounts: These represent demand deposits with related parties. Balances are denominated in NGN with no
interest rates and are repayable on demand.

Standard Bank of South Africa 36,204 38,840 - -
Standard Bank De Angola SA
3 3--

36,207 38,843 - -

f. Derivatives: These represent fair value of currency swap and forward transactions with entities within the Standard Bank Group.
Details per counterparty are as follows:

Standard Bank of South Africa 46 2 - -
ICBC London PLC 41 184 - -
87 186 - -

The contract terms include currency swaps and forward exchange of EUR/ USD, GBP/USD, and USD/ NGN. The contracts have a total notional principal of N27.5 billion
(Dec 2017: N39.3 billion). Maturity dates of the contracts ranges from one month to six months.

272 Stanbic IBTC Annual report for the year ended 31 December 2018

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
For the year ended 31 December 2018

36. Related party transactions (continued) i. Other liabilities (Group): These relate to short term trade
g. S ubordinated debt: See note 23 for details of the transaction. related payable to SBSA and dividend payable to South African
h. Other borrowings: See note 22 for details of the transaction. Holdings Limited (“SAHL”).

Profit or loss impact of transactions with Standard Bank Group Company
of South Africa and other related parties
Note 31 Dec 2018 31 Dec 2017 31 Dec 2018 31 Dec 2017
Interest income earned 31.1 Nmillion Nmillion Nmillion Nmillion
Interest expense 31.2
Trading revenue/(loss) 31.4 582 436 --
Fee and commission income 31.3
Dividend income 31.5 (1,284) (2,715) --

(83) (4,143) --

-- 1,198 1,491

-- 16,941 28,092

j. I nterest income earned: This represents interest earned on n. Dividend income: represents dividend received from
placement with group entities. The nature of transaction is subsidiaries.
presented in note 36.3(a)
36.4 Balances with key management personnel
k. Interest expense: This represents interest expense booked in
respect of deposits, subordinated debt, and other borrowing Key management personnel includes: members of the Stanbic
transactions with group entities. The nature of transaction is IBTC Holdings PLC board of directors and Stanbic IBTC Holdings
presented in note 36.3(e), (g), & (h). PLC executive committee. The definition of key management
includes close members of key management personnel and any
l. T rading revenue/(loss): This represents fair value gain/(loss) entity over which key management exercise control, joint control
on trading and derivative transactions with group entities. The or significant influence. Close family members are those family
nature of transaction is presented in note 36.3(c), (f) and (g). members who may influence, or be influenced by that person in
their dealings with Stanbic IBTC Holdings PLC. They include the
m. F ee and commission income: This represents fee income person’s domestic partner and children, the children of the person’s
earned by the Company from technical and management domestic partner, and dependents of the person or the person’s
service provided to subsidiaries. Details on the nature and domestic partner.
terms of the agreement are provided in note 36.3 (d).

(i) Key management compensation Group

Salaries and other short-term benefits 31 Dec 2018 31 Dec 2017
Post-employment benefits Nmillion Nmillion
Value of share options and rights expensed
566 1,089
(ii) Loans and deposit transactions with key management personnel
Loans and advances 25 50
Loans outstanding at the beginning of the period
Net movement during the period 52 154
Loans outstanding at the end of the period
Net interest earned 643 1,294

191 214
(67) (23)
124 191

8 13

Loans include mortgage loans, instalment sale and finance leases and credit cards. Loans granted to employees and executive directors
are granted at concessionary rates 14%-16% below the prime lending rate. No specific impairments have been recognised in respect
of loans granted to key management at the reporting date (2017: nil). The mortgage loans and instalment sale and finance leases are
secured by the underlying assets. All other loans are unsecured.

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 273

Deposit and current accounts Group 31 Dec 2017
Deposits outstanding at beginning of the period 31 Dec 2018 Nmillion
Net movement during the period
Deposits outstanding at end of the period Nmillion 247
Net interest expense 30
277
(32) 277
245 1

2

Deposits include cheque, current and savings accounts.
(iii) Investments
Details of key management personnel’s investment transactions and balances with Stanbic IBTC Holdings PLC are set out below.

Investment products 351 63
Balance at the beginning of the period 46 288
Net movement during the period 397 351
Balance at the end of the period

(iv) Shares and share options held 31 Dec. 2018 31 Dec. 2017
Number Number
Aggregate number of share options issued to Stanbic IBTC key management personnel:
Share options held (Stanbic IBTC Holdings PLC scheme) 2,569,101 2,569,101
Share options held (ultimate parent company schemes) 411,230 532,857

(v) Other transactions with 36.5 Other related party transactions to provide up to US$50 million to
key management personnel Stanbic IBTC Bank PLC. The agreement
Shared service arrangement is effective from 18 July 2017 and
Loans to entities affiliated to directors with subsidiaries renewable annually. See page 106
and ex-directors/Loans to employees Stanbic IBTC Holdings PLC provides some under “Liquidity Contingency” for
The group has some exposures in terms business support functions to some of further details.
of loans and advances to employees its subsidiaries. The business support
and to customers that are affiliated to functions include internal audit, marketing Stanbic IBTC Bank PLC did not draw any
its present and past directors. Loans and branding, internal control, legal and fund under the agreement during the
granted to customers that are affiliated secretarial services, and compliance. The period (2017: nil).
to directors are granted at commercial costs incurred by Stanbic IBTC Holdings
rates while those granted to executive PLC in respect of the functions are shared Staff health insurance scheme
directors and employees are granted between Stanbic IBTC Holdings PLC and The group’s employees are covered under
at below-the-market rates. There were subsidiaries in agreed ratio that reflect the a comprehensive health insurance scheme
no non-performing director related rate of consumption by each entity. The provided by Total Health Trust Limited,
exposures as at balance sheet date costs shared are actual cost incurred with a subsidiary of Liberty Holdings Limited.
(2017: Nil). Details of the exposures is no mark-up included. Liberty Holdings Limited is a subsidiary of
presented in note 37. Standard Bank Group Limited. Expenses
Foreign currency revolving facility incurred by the group in respect of the
from Standard Bank of South Africa scheme for the year amounted to N574
Stanbic IBTC Bank PLC has a standby million (Dec 2017: N539 million).
funding agreement with Standard Bank of
South Africa (Isle of Man Branch) where
Standard Bank of South Africa commits

274 Stanbic IBTC Annual report for the year ended 31 December 2018

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
For the year ended 31 December 2018

37. Director and staff related exposures

The group has some exposures in terms of loans and advances to employees and to customers that are affiliated to its present and past
directors. Loans granted to customers that are affiliated to directors are granted at commercial rates while those granted to executive
directors and employees are granted at below-the-market rates. There were no non-performing director related exposures as at balance
sheet date (2017: Nil). In cases where outstanding balance exceeds approved credit limit, no principal payment was due on the facility
and the excess therefore relates to accrued interest.

Schedule of directors and staff related credits

Name of Company/Individual Relationship Name of Facility type Currency
related interest
Unilever Nigeria Plc Former Chairman (Holdco) Term Loan EUR
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan GBP
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan GBP
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD
Seplat Petroleum Development Chairman (Holdco) Atedo Peterside Term Loan USD
Company Plc Basil Omiyi

Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 275

Outstanding

Approved credit plus accrued Interest rate
% Security nature
Date granted Expiry date limit N’million interest N’million Status
5.00 Unsecured
25-Jul-18 10-Jan-19 68.89 60.38 Performing
10-Aug-18 07-Mar-19 3.95 0.99 Performing 6.34 Unsecured
30-Aug-18 07-Mar-19 Performing
10-Sep-18 07-Mar-19 23.76 22.68 Performing 4.00 Unsecured
11-Sep-18 07-Mar-19 1.97 0.20 Performing
11-Sep-18 07-Mar-19 7.05 2.55 Performing 6.35 Unsecured
19-Sep-18 22-Jan-19 18.16 Performing
12-Oct-18 07-Mar-19 35.07 2.97 Performing 4.75 Unsecured
19-Oct-18 04-Feb-19 3.49 11.91 Performing
23-Oct-18 17-Apr-19 11.74 11.64 Performing 4.80 Unsecured
05-Nov-18 02-Feb-19 12.19 Performing
16-Nov-18 14-Feb-19 24.59 21.88 Performing 6.34 Unsecured
07-Dec-18 07-Mar-19 12.10 Performing
17-Dec-18 17-Mar-19 21.74 15.00 Performing 6.41 Unsecured
21-Mar-18 30-Jun-22 14.94 12.26 Performing
12.20 4.00 Unsecured
5.79 5.81
8,740.32 4,056.41 4.00 Unsecured

17-May-18 05-Mar-19 15.62 5.40 Performing 4.00 Unsecured
08-Nov-13 12-Nov-20 1,066.07 358.79 Performing
22-Jun-17 30-Jun-22 2,000.00 1,750.74 Performing 4.00 Unsecured
30-Jun-22 1,700.00 1,488.13 Performing
17-Jul-17 30-Jun-22 Performing 6.75 Unsecured
26-Jul-17 30-Jun-22 10.00 8.73 Performing
23-Nov-17 28-Feb-25 1,290.00 1,129.23 Performing 6.78 Unsecured
16-Mar-18 05-Feb-19 2,000.00 2,000.99 Performing
26-Jun-18 19-Feb-19 Performing 8.39 All asset debenture and
01-Aug-18 06-Feb-19 534.62 409.71 Performing borrower personal guarantee
10-Aug-18 19-Mar-19 127.21 45.20 Performing (cash collateral on the
13-Aug-18 53.84 54.91 LC/advance)
41.04
49.18 5.00 Negative pledge
(Letter of Comfort from SIAT)

7.00 Negative pledge
(Letter of Comfort from SIAT)

15.45 Negative pledge
(Letter of Comfort from SIAT)

15.45 Negative pledge
(Letter of Comfort from SIAT)

15.45 Negative pledge
(Letter of Comfort from SIAT)

15.45 Negative pledge
(Letter of Comfort from SIAT)

18.00 Negative pledge
(Letter of Comfort from SIAT)

8.34 Negative pledge
(Letter of Comfort from SIAT)

5.00 Negative pledge
(Letter of Comfort from SIAT)

5.00 Negative pledge
(Letter of Comfort from SIAT)

5.00 Negative pledge
(Letter of Comfort from SIAT)

276 Stanbic IBTC Annual report for the year ended 31 December 2018

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
For the year ended 31 December 2018

Schedule of directors and staff related credits (continued)

Name of Company/Individual Relationship Name of Facility type Currency
Presco Plc Former Chairman (Holdco) related interest
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR
Presco Plc Former Chairman (Holdco) Atedo Peterside
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD
Presco Plc Former Chairman (Holdco) Atedo Peterside
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD
Presco Plc Former Chairman (Holdco) Atedo Peterside
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD
Presco Plc Former Chairman (Holdco) Atedo Peterside
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD
Presco Plc Former Chairman (Holdco) Atedo Peterside
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD
Presco Plc Former Chairman (Holdco) Atedo Peterside
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD
Presco Plc Former Chairman (Holdco) Atedo Peterside
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR
Presco Plc Former Chairman (Holdco) Atedo Peterside
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR
Presco Plc Former Chairman (Holdco) Atedo Peterside
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR
Presco Plc Former Chairman (Holdco) Atedo Peterside
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR
Presco Plc Former Chairman (Holdco) Atedo Peterside
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR
Atedo Peterside
Term Loan EUR

Term Loan EUR

Term Loan EUR

Term Loan EUR

Term Loan EUR

Term Loan EUR

Term Loan EUR

Term Loan EUR

Term Loan EUR

Term Loan EUR

Term Loan EUR

Term Loan EUR

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 277

Outstanding

Approved credit plus accrued Interest rate
% Security nature
Date granted Expiry date limit N’million interest N’million Status
20-Aug-18 08-Feb-19 Performing 5.00 Negative pledge
8.06 5.71 Performing (Letter of Comfort from SIAT)
Performing
05-Sep-18 19-Mar-19 82.89 11.72 Performing 7.32 Negative pledge
Performing (Letter of Comfort from SIAT)
05-Sep-18 19-Mar-19 87.50 72.04 Performing
Performing 7.32 Negative pledge
06-Sep-18 05-Feb-19 4.61 4.71 Performing (Letter of Comfort from SIAT)
Performing
06-Sep-18 19-Mar-19 50.66 51.86 Performing 7.32 Negative pledge
Performing (Letter of Comfort from SIAT)
11-Sep-18 19-Mar-19 13.80 14.11 Performing
Performing 7.32 Negative pledge
12-Sep-18 05-Feb-19 69.59 71.16 Performing (Letter of Comfort from SIAT)
Performing
17-Sep-18 15-Jan-19 5.27 5.34 Performing 7.33 Negative pledge
Performing (Letter of Comfort from SIAT)
20-Sep-18 19-Mar-19 40.37 40.94 Performing
Performing 7.33 Negative pledge
03-Oct-18 05-Mar-19 30.05 30.42 Performing (Letter of Comfort from SIAT)
Performing
22-Oct-18 20-Jan-19 4.36 4.41 Performing 5.00 Negative pledge
Performing (Letter of Comfort from SIAT)
22-Oct-18 20-Jan-19 41.88 42.29 Performing
5.00 Negative pledge
22-Oct-18 20-Jan-19 388.43 392.21 (Letter of Comfort from SIAT)

22-Oct-18 20-Jan-19 104.53 105.54 5.00 Negative pledge
(Letter of Comfort from SIAT)
06-Nov-18 04-Feb-19 71.43 71.98
5.00 Negative pledge
06-Nov-18 04-Feb-19 99.13 99.89 (Letter of Comfort from SIAT)

14-Nov-18 12-Feb-19 248.68 250.31 5.00 Negative pledge
(Letter of Comfort from SIAT)
16-Nov-18 14-Feb-19 39.09 39.27
5.00 Negative pledge
16-Nov-18 14-Feb-19 48.44 48.75 (Letter of Comfort from SIAT)

16-Nov-18 14-Feb-19 104.44 105.10 5.00 Negative pledge
(Letter of Comfort from SIAT)
26-Nov-18 24-Feb-19 32.70 17.16
5.00 Negative pledge
29-Nov-18 27-Feb-19 286.59 287.89 (Letter of Comfort from SIAT)

07-Dec-18 07-Mar-19 123.23 123.65 5.00 Negative pledge
(Letter of Comfort from SIAT)
13-Dec-18 13-Mar-19 50.12 50.26
5.00 Negative pledge
(Letter of Comfort from SIAT)

5.00 Negative pledge
(Letter of Comfort from SIAT)

5.00 Negative pledge
(Letter of Comfort from SIAT)

5.00 Negative pledge
(Letter of Comfort from SIAT)

5.00 Negative pledge
(Letter of Comfort from SIAT)

5.00 Negative pledge
(Letter of Comfort from SIAT)

5.00 Negative pledge
(Letter of Comfort from SIAT)

5.00 Negative pledge
(Letter of Comfort from SIAT)

278 Stanbic IBTC Annual report for the year ended 31 December 2018

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
For the year ended 31 December 2018

Schedule of directors and staff related credits (continued)

Name of Company/Individual Relationship Name of Facility type Currency
related interest
Presco Plc Former Chairman (Holdco) Term Loan EUR
Atedo Peterside
Nigerian Breweries Plc Former Chairman (Holdco) Term Loan NGN
Nigerian Breweries Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN
Nigerian Breweries Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Atedo Peterside Term Loan USD
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan USD
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan USD
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan USD
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan GBP
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan USD
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan USD
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Olusola David-Borha

Holdco OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 279

Outstanding

Approved credit plus accrued Interest rate
% Security nature
Date granted Expiry date limit N’million interest N’million Status
17-Dec-18 17-Mar-19 5.00 Negative pledge
156.91 157.23 Performing (Letter of Comfort from SIAT)

11-Jul-18 07-Jan-19 2,000.00 2,067.87 Performing 14.74 Negative Pledge
06-Dec-18 06-Mar-19 1,000.00 1,012.47 Performing 17.50 Negative Pledge
05-Dec-18 05-Mar-19 5,000.00 1,051.30 Performing 17.50 Negative Pledge
28-May-18 11-Jan-19 Performing
30-May-18 11-Jan-19 50.82 35.64 Performing 7.32 Unsecured
25-Jul-18 02-Jan-19 50.82 22.48 Performing 7.32 Unsecured
25-Jul-18 18-Jan-19 93.48 21.68 Performing 5.00 Unsecured
27-Jul-18 16-Jan-19 141.15 89.01 Performing 5.00 Unsecured
31-Jul-18 18-Jan-19 146.72 76.62 Performing 5.00 Unsecured
01-Aug-18 16-Jan-19 78.80 64.65 Performing 5.00 Unsecured
10-Aug-18 16-Jan-19 76.02 21.43 Performing 5.00 Unsecured
13-Aug-18 18-Jan-19 32.29 20.73 Performing 4.50 Unsecured
13-Aug-18 18-Jan-19 208.23 73.19 Performing 5.00 Unsecured
16-Aug-18 04-Jan-19 443.27 125.43 Performing 5.00 Unsecured
27-Aug-18 24-Jan-19 59.95 33.48 Performing 6.83 Unsecured
28-Aug-18 25-Jan-19 170.10 172.76 Performing 4.50 Unsecured
04-Sep-18 18-Jan-19 46.11 46.83 Performing 4.50 Unsecured
04-Sep-18 01-Feb-19 30.63 15.51 Performing 4.50 Unsecured
04-Sep-18 18-Jan-19 39.38 39.96 Performing 4.50 Unsecured
04-Sep-18 18-Jan-19 66.91 67.89 Performing 4.50 Unsecured
04-Sep-18 18-Jan-19 122.63 33.95 Performing 4.50 Unsecured
11-Sep-18 18-Jan-19 123.06 124.86 Performing 4.50 Unsecured
11-Sep-18 18-Jan-19 19.27 19.53 Performing 4.50 Unsecured
11-Sep-18 18-Jan-19 33.69 33.38 Performing 4.50 Unsecured
11-Sep-18 18-Jan-19 49.86 40.86 Performing 4.50 Unsecured
11-Sep-18 09-Jan-19 50.23 50.93 Performing 4.50 Unsecured
11-Sep-18 09-Jan-19 55.21 55.97 Performing 4.50 Unsecured
11-Sep-18 18-Jan-19 68.27 69.21 Performing 4.50 Unsecured
11-Sep-18 04-Jan-19 92.71 93.99 Performing 4.50 Unsecured
11-Sep-18 18-Jan-19 186.25 152.37 Performing 4.50 Unsecured
12-Sep-18 08-Feb-19 212.22 119.33 Performing 4.50 Unsecured
17-Sep-18 04-Jan-19 63.67 64.54 Performing 4.50 Unsecured
19-Sep-18 17-Jan-19 71.94 73.38 Performing 6.83 Unsecured
26-Sep-18 18-Jan-19 11.25 Performing 4.50 Unsecured
05-Oct-18 02-Feb-19 68.01 7.06 Performing 4.50 Unsecured
05-Oct-18 02-Feb-19 33.39 21.41 Performing 4.50 Unsecured
11-Oct-18 16-Jan-19 13.18 33.75 Performing 5.30 Unsecured
12-Oct-18 10-Jan-19 113.44 13.35 Performing 6.89 Unsecured
16-Oct-18 10-Jan-19 69.02 82.38 Performing 4.50 Unsecured
16-Oct-18 14-Jan-19 71.94 69.71 Performing 6.94 Unsecured
18-Oct-18 16-Jan-19 74.67 10.96 Performing 4.50 Unsecured
72.99 23.11 4.50 Unsecured
73.67

280 Stanbic IBTC Annual report for the year ended 31 December 2018

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
For the year ended 31 December 2018

Schedule of directors and staff related credits (continued)

Name of Company/Individual Relationship Name of Facility type Currency
Former Chief Executive (Holdco) related interest
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan USD
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan GBP
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan USD
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan EUR
Nigerian Bottling Co Plc Former Chief Executive (Holdco) Olusola David-Borha Term Loan USD
Nigerian Bottling Co Plc Ex-Non Executive Director Olusola David-Borha Term Loan USD
MTN Nigeria Communications Ltd Ex-Non Executive Director Ahmed I Dasuki Term Loan NGN
MTN Nigeria Communications Ltd Ex-Non Executive Director Ahmed I Dasuki Term Loan NGN
MTN Nigeria Communications Ltd Ex-Non Executive Director Ahmed I Dasuki Term Loan NGN
INT Towers Limited Non Executive Director (Holdco) Ahmed I Dasuki Term Loan USD
Golden Sugar Company Limited Salamatu Suleiman Term Loan NGN
(A Subsidiary of Flour Mills) Non Executive Director (Holdco)
Aptics Nigeria Ltd Fabian Ajogwu SAN Term Loan USD
(Subsidiary of Novare Africa Fund Pcc) Non Executive Director (Holdco)
Urshday Limited Fabian Ajogwu SAN Term Loan NGN
(Subsidiary of Novare Africa Fund Pcc) Non Executive Director (Holdco)
Urshday Limited Non Executive Director (Holdco) Fabian Ajogwu SAN Term Loan NGN
(Subsidiary of Novare Africa Fund Pcc) Non Executive Director (Holdco) Fabian Ajogwu SAN Term Loan NGN
Gray-Bar Alliance Ltd Former Chairman (Holdco) Fabian Ajogwu SAN Term Loan NGN
Elysium Diem (Nigeria) Ltd Former Chairman (Holdco) Atedo Peterside Overdraft NGN
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD
Cadbury Nigeria Plc Atedo Peterside Term Loan NGN
Cadbury Nigeria Plc

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 281

Outstanding

Approved credit plus accrued Interest rate
% Security nature
Date granted Expiry date limit N’million interest N’million Status
4.50 Unsecured
25-Oct-18 23-Jan-19 49.58 49.99 Performing 7.02 Unsecured
30-Oct-18 28-Jan-19 27.62 27.96 Performing 4.50 Unsecured
30-Oct-18 28-Jan-19 176.12 177.49 Performing 4.50 Unsecured
05-Nov-18 03-Feb-19 9.20 9.26 Performing 4.50 Unsecured
05-Nov-18 03-Feb-19 13.80 13.90 Performing 4.50 Unsecured
05-Nov-18 03-Feb-19 23.01 23.17 Performing 5.32 Unsecured
05-Nov-18 03-Feb-19 85.29 86.00 Performing 4.50 Unsecured
05-Nov-18 04-Jan-19 182.47 16.30 Performing 4.50 Unsecured
06-Nov-18 04-Feb-19 53.27 53.64 Performing 4.50 Unsecured
09-Nov-18 07-Feb-19 76.81 Performing 7.14 Unsecured
21-Nov-18 19-Feb-19 59.95 7.42 Performing 4.50 Unsecured
26-Nov-18 24-Feb-19 181.87 60.43 Performing 4.00 Unsecured
28-Nov-18 27-Jan-19 31.42 182.21 Performing 4.50 Unsecured
11-Dec-18 11-Mar-19 123.36 31.54 Performing 4.50 Unsecured
17-Dec-18 17-Mar-19 15.97 123.68 Performing 7.29 Unsecured
21-Dec-18 21-Mar-19 27.62 16.00 Performing 7.30 Unsecured
21-Dec-18 21-Mar-19 41.43 27.68 Performing 14.95 Shares
30-Nov-15 29-Nov-19 2,592.95 41.52 Performing 14.95 Shares
31-Mar-14 29-Nov-19 7,500.00 370.52 Performing 14.95 Shares
02-Mar-18 29-Nov-19 833.33 1,752.23 Performing 7.19 Negative Pledge
15-Jul-15 13-Dec-21 4,302.79 416.84 Performing
13-Jul-12 14-Jun-22 1,854 4,271.45 Performing 7 All Asset Debenture on Fixed
and Floating Assets
766
11 All Asset Mortgage Debenture
27-Mar-14 29-Mar-19 4,734 2,289 Performing
19 All Asset Mortgage Debenture
28-Mar-17 30-Jun-22 450 455 Performing
19 All Asset Mortgage Debenture
23-Dec-16 30-Jun-22 2,500 62 Performing 23 All Asset Mortgage Debenture
2-Jan-18 30-Jun-21 1,400 369 Performing 23 All Asset Mortgage Debenture
3-Sep-18 31-Dec-21 269 Performing 17 Unsecured
21-Nov-18 19-Jan-19 250 649 Performing 17 Unsecured
8-Oct-18 2,400 Performing
11-Oct-18 3-Jan-19 7 Performing 0 Unsecured
15-Oct-18 12-Jan-19 7 1 Performing 17 Unsecured
25-Oct-18 17-Jan-19 1 3 Performing 17 Unsecured
7-Nov-18 28-Jan-19 3 10 Performing 17 Unsecured
9-Nov-18 8-Feb-19 10 13 Performing 17 Unsecured
16-Nov-18 14-Feb-19 13 10 Performing
19-Nov-18 14-Feb-19 10 117 Performing 8 Unsecured
26-Nov-18 21-Feb-19 115 7 Performing 17 Unsecured
26-Nov-18 28-Feb-19 7 14 Performing 17 Unsecured
29-Nov-18 1-Mar-19 14 0 Performing 17 Unsecured
6-Dec-18 27-Feb-19 0 439 Performing
9-Mar-19 436 15 8 Unsecured
15 17 Unsecured

282 Stanbic IBTC Annual report for the year ended 31 December 2018

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
For the year ended 31 December 2018

Schedule of directors and staff related credits (continued)

Name of Company/Individual Relationship Name of Facility type Currency
Former Chairman (Holdco) related interest
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN
Cadbury Nigeria Plc Atedo Peterside Term Loan NGN
Anap Business Jets Limited Former Chairman (Holdco)
(Anap Holdings Limited) Former Chairman (Holdco) Atedo Peterside Card NGN
Anap Holdings Limited Atedo Peterside Card NGN
Anap Business Jets Limited Former Chairman (Holdco)
(Anap Holdings Limited) Former Chairman (Holdco) Atedo Peterside Card NGN
Anap Holdings Limited Atedo Peterside Card NGN
Anap Business Jets Limited Former Chairman (Holdco)
(Anap Holdings Limited) Non Executive Director (Holdco) Atedo Peterside Card NGN
Guinness Nigeria Plc Non Executive Director (Holdco) Ngozi Edozien Term Loan USD
Guinness Nigeria Plc Non Executive Director (Holdco) Ngozi Edozien Term Loan USD
Guinness Nigeria Plc Non Executive Director (Holdco) Ngozi Edozien Term Loan EUR
Guinness Nigeria Plc Non Executive Director (Holdco) Ngozi Edozien Term Loan EUR
Guinness Nigeria Plc Non Executive Director (Holdco) Ngozi Edozien Term Loan EUR
Guinness Nigeria Plc Non Executive Director (Holdco) Ngozi Edozien Term Loan EUR
Guinness Nigeria Plc Non Executive Director (Holdco) Ngozi Edozien Term Loan EUR
Guinness Nigeria Plc Non Executive Director (Holdco) Ngozi Edozien Term Loan USD
Guinness Nigeria Plc Non Executive Director (Holdco) Ngozi Edozien Term Loan USD
Guinness Nigeria Plc Non Executive Director (Holdco) Ngozi Edozien Term Loan USD
PZ Cussons Plc Former Chairman (Holdco) Ngozi Edozien Overdraft NGN
Atedo N.A. Peterside Chief Executive (Holdco) Atedo Peterside Card NGN
Olayinka Omotosho Sanni Ex-Director (Bank) Olayinka Omotosho Sanni VAF NGN
Babatunde Macaulay Executive Director (Bank) Babatunde Macaulay Card NGN
Adeniyi Oluwole Executive Director (Bank) Adeniyi Oluwole Home Loans NGN
Adeniyi Oluwole Executive Director (Bank) Adeniyi Oluwole Card USD
Adeniyi Oluwole Executive Director (Bank) Adeniyi Oluwole Card NGN
Dr AAE and Mrs JAO Sogunle Executive Director (Bank) Demola Sogunle Card USD
Dr AAE and Mrs JAO Sogunle Demola Sogunle Term Loan NGN
Executive Director (Bank)
Dr AAE and Mrs JAO Sogunle Demola Sogunle VAF NGN
Staff
Various Staff Various Staff Staff Loan
Total-Insider related credits

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 283

Outstanding

Approved credit plus accrued Interest rate
% Security nature
Date granted Expiry date limit N’million interest N’million Status 17 Unsecured
Performing 8 Unsecured
13-Dec-18 14-Mar-19 13 13 Performing 17 Unsecured
17-Dec-18 17-Mar-19 150 151 Performing 17 Unsecured
19-Dec-18 22-Mar-19 Performing
31-Dec-18 28-Mar-19 66 30 Shares
Performing 30 Shares
14 14 Performing
30 Shares
23-Aug-18 31-Aug-21 2 0 Performing 30 Shares
Performing
23-Nov-16 23-Nov-19 2 0 30 Shares
Performing 7 Unsecured
23-Nov-16 23-Nov-19 2 0 Performing 7 Unsecured
Performing 4 Unsecured
25-Jan-17 25-Jan-20 2 0 Performing 4 Unsecured
Performing 4 Unsecured
23-Aug-18 31-Aug-21 5 0 Performing 4 Unsecured
26-Nov-18 25-Jan-19 35 35 Performing 4 Unsecured
26-Nov-18 24-Feb-19 47 Performing 7 Unsecured
12-Nov-18 10-Feb-19 26 0 Performing 7 Unsecured
9-Nov-18 7-Feb-19 39 7 Performing 7 Unsecured
7-Nov-18 40 39 Performing
7-Nov-18 6-Jan-19 47 39 Performing 18 Unsecured
6-Dec-18 5-Feb-19 29 47 Performing 30 Shares
21-Dec-18 6-Mar-19 33 29 Performing 18 Financed Asset (Vehicle)
17-Dec-18 21-Mar-19 39 33 Performing 30 Shares
24-Dec-18 17-Mar-19 86 39 Performing
25-Oct-18 24-Mar-19 1,500 86 Performing 9 Legal Mortgage
12-Oct-16 22-Jan-19 20 154 Performing 30 Euro Bond
16-Jul-18 31-Oct-19 59 1 Performing
17-Jun-16 15-Aug-22 55 Performing 0 Euro Bond
26-Mar-10 30-Jun-19 3 0 30 Cash (Dollar Fund)
17-Dec-18 20-Jun-19 51 3 Performing 18 Cash (Dollar Fund)/Legal
10-Oct-18 31-Jul-19 2
21-Nov-16 31-Oct-21 9 1 Performing Mortgage
28-Nov-17 30-Nov-19 3 0 18 Cash (Dollar Fund)/Legal
20-Nov-22 9 51
60 Mortgage

8-Nov-18 20-Nov-22 27 27

8,432 6,265
80,042 40,328

284 Stanbic IBTC Annual report for the year ended 31 December 2018

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
For the year ended 31 December 2018

Name of related Outstanding
interest
Name of Company Salamatu Suleiman Relationship Facility type Currency N’000 Status
Flour Mills Of Nigeria PLC Non Executive Letter Of Credit Performing
(Flour Mills Group) Salamatu Suleiman Director (Holdco) USD 4,715 Performing
Golden Sugar Company Ltd Non Executive Letter Of Credit Performing
(Flour Mills Group) Ngozi Edozien Director (Holdco) USD 3,498
Guinness Nigeria PLC Non Executive Letter of Credit Performing
Olusola Director (Holdco) Bonds and USD, EUR 3,493
Nigerian Bottling Company Ltd David-Borha Guarantees & NGN Performing
Former Chief Letter of Credit Performing
MTN Nigeria Communications Ltd Ahmed I Dasuki Executive (Holdco) Bonds and USD, EUR, 3,093
Guarantees GBP & 2,434 Performing
Nigerian Breweries PLC Atedo Peterside Ex-Non Executive Letter Of Credit NGN
Director Performing
Former Chairman Letter Of Credit USD Performing
(Holdco) Performing
USD, EUR, 2,354 Performing
Cadbury Nig PLC Atedo Peterside Former Chairman Letter Of Credit GBP & 2,190
(Holdco) Bonds And NGN
Presco PLC Atedo Peterside Guarantees
PZ Cussons Nigeria PLC Former Chairman Letter Of Credit USD
Makon Engineering & Technical Ngozi Edozien (Holdco) & NGN
Services Ltd Non Executive Letter Of Credit
Unilever Nigeria PLC Miannaya Essien Director (Holdco) USD 1,938
Total SAN Non Executive Bonds And & EUR 1,340
Atedo Peterside Director (Bank) Guarantees
Former Chairman Letter Of Credit USD,GBP 900
(Holdco) & CNY

USD

USD, 594
EUR, GBP 26,549

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 285

38. Retirement benefit obligations Contributions to the scheme are managed by Stanbic IBTC
Pension Managers Limited, and other appointed pension
The group operates a defined contribution pension scheme managers on behalf of the beneficiary staff in line with the
in line with the provisions of the Pension Reform Act 2014, provisions of the Pension Reform Act. Consequently, the group has
with contributions based on the sum of employees’ basic no legal or constructive obligations to pay further contributions
salary, housing and transport allowances in the ratio 8% by the if the funds do not hold sufficient assets to meet the related
employee and 10% by the employer. The amount contributed obligations to employees.
by the group and remitted to the Pension Fund Administrators
during the period was N1,030 million (2017: N1,085 million). Details of transactions between the group and the group’s
post-employment contribution plans (that is, the contributory
The group’s contribution to this scheme is charged to the pension scheme) are listed below:
income statement in the period to which it relates.

Deposits held with the group 31 Dec 2018 31 Dec 2017
Interest paid Nmillion Nmillion
Value of asset under management - 5,000
Number of Stanbic IBTC Holdings shares held 181 848
20,909 19,112
- -

39. Employees and directors Group 31 Dec 2017
a. Employees 31 Dec 2018 Number
4
The average number of persons employed by the group during the period by category: Number 534
5 2,469
Executive directors 3,007
Management 550
Non-management 2,403 Number
2,958 -
Below N1,000,001
N1,000,001-N2,000,000 Number 300
N2,000,001-N3,000,000 - 500
N3,000,001-N4,000,000 294
N4,000,001-N5,000,000 12 196
N5,000,001-N6,000,000 312 170
N6,000,001 and above 427 1,547
20 3,007
350
1,837
2,958

286 Stanbic IBTC Annual report for the year ended 31 December 2018

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
For the year ended 31 December 2018

40. Compliance with banking and • The Bank’s new current account 41. Events after the reporting
other regulations customers were not screened against date
the credit bureau consolidated data
The group was penalised by the Central base of dud cheque issuers before In January 2019, Stanbic IBTC Holdings
Bank of Nigeria (“CBN”) & NOTAP during their accounts were uploaded and PLC appointed Mr. Barend Johannes
the period as follows: Dud cheque issued by customers over Kruger as a Non-Executive Director with
the counter were not reported to the effect from 18 January 2019.
• Contravention of the CBN directive credit bureau and the Credit Report
on Repatriation of export proceeds - Management System.- N2,000,000. With reference to note 30.4 Legal
N2,000,000 proceedings, the following event
• Penalty arising from CBN investigation happened subsequent to 31 Dec 2018:
• The Bank issued payment cards with on “irregular” Certificates of Capital
validity less than 3 years between Importation (“CCI’s”) issued to MTN On 18 January 2019, the Supreme Court
December 2015 and October 2016 in Nigeria Communications Limited (MTN dismissed the Bank’s appeal challenging
contravention of section 3.13 of the Nigeria), between 2007 and 2015- the judgments of the Court of Appeal
CBN guidelines on card issuance and N1,885,852,847.46. and Federal High Court wherein damages
usage in Nigeria dated May 2014- of N2.5 billion was awarded against the
N2,000,000. • The Bank had not obtained BVN from Bank in favour of Longterm Global Capital
5,700 PBB borrowing account holders Limited.
• The bank contravened the provisions in contravention of the provision of
of section 30(8) of BOFIA 1999 as CBN Circular Reference BSP/DIR.GEN/ There was however a full provision for this
amended and CBN circular reference CIR/01/015 of October 21, 2014.- case that was made prior to this accounting
BSD/1/2003 dated February 25, 2003 N2,000,000. period.
by not reporting thirty-seven (37) Public
Sector accounts.- N2,000,000. • The Bank’s aggregate credit exposure There were no other events after the
to insider related facilities was in excess reporting date which could have a material
• The bank launched and deployed a verve of 60% of its paid-up share capital effect on the financial position of the
prepaid debit card without prior approval which is in contravention of CBN circular group as at 31 December 2018 which have
of CBN in contravention of section 3.2 reference BSD/9/2004- N2,000,000. not been recognised or disclosed.
of the CBN guidelines on card issuance
and usage in Nigeria dated May 2014.- The total penalties paid by the group
N2,000,000. amounted to N1.9 billion (2017:
N41 million).
• Penalty fees to NOTAP for Infosys FCM
implementation agreement submitted
for approval more than 30 days from
the effective date of agreement.-
N100,000.

• The bank accepted wrong identification
documents used by some customers
which were not in line with the CBN
circular FPR/DIR/CIR/GEN/02/001 on
the requirements of three tiered KYC.-
N2,000,000.

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 287

ANNEXURE A: VALUE ADDED STATEMENT
For the year ended 31 December 2018

Group Company

31 Dec 2018 % 31 Dec 2017 % 31 Dec 2018 % 31 Dec 2017 %
Nmillion Nmillion Nmillion Nmillion

Gross earnings 222,360 212,434 19,463 29,922
Interest paid:
local (36,413) (35,115) - (1,095)
foreign (3,760) (4,209) --
(40,173) (39,324) - (1,095)
Administrative overhead:
local (48,805) (45,176) (1,801) (692)
foreign (710) (780) - -

Recover/(Provision) for losses (49,515) (45,956) (1,801) (692)
Value added
2,940 (25,577) - -
Distribution 135,612 100 101,577 100 17,662 100 28,135 100
Employees & directors
Salaries and benefits 43,027 32 36,282 36 1,662 2 590 2

Government 13,712 10 12,785 12 501 8 2,380 8
Taxation
4,433 4,129 - -
The future 74,440 48,381 15,499 25,165
Asset replacement (depreciation) 78,873 58 52,510 52 15,499 88 25,165 90
Expansion (retained in the business) 135,612 100 101,577 100 17,662 100 28,135 100
Total

288 Stanbic IBTC Annual report for the year ended 31 December 2018

ANNEXURE B: FINANCIAL SUMMARY

Statement of financial position

Group Company

Assets 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec
2018 2017 2016 2015 2014 2018 2017 2016 2015 2014
Cash and cash
equivalents Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion
Derivative assets
Trading assets 455,773 401,348 301,351 211,481 143,171 15,533 7,545 1,768 8 784
Pledged assets 30,286 11,052 14,317 911 4,860 - - - - -
Financial investments 84,351 16,855 - - - - -
Asset held on sale 142,543 151,479 28,303 37,956 96,345 - - - - -
Loans and advances 400,000 43,240 86,570 34,172 658
to banks 316,641 252,823 162,695 204,502 1,796 1,625 920 - 58
Loans and advances - 112 - - - -
to customers 114 262 -
Deferred tax assets - -
Equity Investment 8,548 9,623 15,264 26,782 8,814 ---
in group companies - -
Other assets 432,713 372,088 352,965 353,513 398,604 - --- 484
Intangible assets 9,181 8,901 8,638 8,342 5,737 - - 555
Property and 85,539 69,151
equipment - - - - - 4,091 85,539 85,539 69,191 2,541
77,787 49,442 39,220 23,741 21,710 - 2,148 2,226 2,996
- - -
827 605 713 - - 993 -
107,952 2,653
21,652 21,883 22,962 25,311 24,004 517 2,404 2,494 75,671
937,564 941,919 97,374 92,857 75,902
1,663,661 1,386,416 1,053,523

Equity and liabilities 5,120 5,025 5,000 5,000 5,000 5,120 5,025 5,000 5,000 5,000
Share capital 230,286 177,035 132,102 118,726 111,021 97,090 87,629 67,970 67,360 67,990
Reserves
Non-controlling 4,261 3,158 3,696 5,241 4,223 - ----
interest 4,152 2,592 11,788 383 2,677 - ----
Derivative liabilities 125,684 62,449 5,325 85,283 - ----
Trading liabilities 160,272 61,721 53,766 24,101 59,121 - ----
Deposits from banks 95,446
Deposits from 807,692 753,642 560,969 494,935 - -- --
customers 69,918 74,892 96,037 493,513 70,151 - - 16,404 --
Other borrowings 60,595 29,046 27,964 81,107 22,973 - -- --
Subordinated debt 14,899 12,240 9,508 23,699 9,847 463 157 68 60 129
Current tax liabilities 137 120 47 8,727 111 - -9
Deferred tax liabilities 120
Provisions & other 180,645 204,496 147,321 76,577 5,279 4,563 3,406 3,482 2,552
liabilities 1,663,661 1,386,416 1,053,523 81,501 941,919 107,952 97,374 92,857 75,902 75,671
937,564

Acceptances

and guarantees 146,481 153,377 54,143 49,973 65,563 - ----

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 289

Statement of profit or loss

Group Company

31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec
2018 2017 2016 2015 2014 2018 2017 2016 2015 2014

Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion
19,463
Net operating income 180,813 172,769 126,053 100,648 104,645 28,827 2,431 10,982 14,320
Operating expenses (3,463)
and provisions (92,661) (111,603) (88,844) (76,997) (61,118) 16,000 (1,282) (930) (1,083) (1,422)
Profit before tax 88,152 61,166 37,209 23,651 43,527 27,545 1,501 9,899 12,898
Taxation (8,689) (4,760) (9,068) (501) (2,380) (892) (28)
Profit after taxation (13,712) (12,785) 28,520 18,891 34,459 15,499 25,165 9,871 238
74,440 48,381 609 13,136

Profit attributable to: 2,353 2,186 3,878 3,393 2,772 - - ---

Non-controlling 72,087 46,195 24,642 15,498 31,687 15,499 25,165 609 9,871 13,136
interests 74,440 48,381 28,520 18,891 34,459 15,499 25,165 609 9,871 13,136

Equity holders of the
parent

Profit for the period

Statistical 704k 460k 246k 155k 317k 151k 250k 6k 99k 131k
information

Earnings per share
(EPS) - basic

290 Stanbic IBTC Annual report for the year ended 31 December 2018

PAGE TITLE

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 291

OTHER INFORMATION

292 Management team
296 Branch network
300 Contact information

292 Stanbic IBTC Annual report for the year ended 31 December 2018

MPAAGNEATGIETMLEENT TEAM

Duke Abanum Victor Aghahowa Emmanuel Aihevba
Head, Operational Risk Head, North Central Zone Head, Customer Channels

Adewale Aina Pat Ajewole Funso Akere Adekunle Akinbowale
Head, Human Capital Service Chief Executive, Stanbic IBTC Chief Executive, Stanbic IBTC Head, Personal & Business
Bureau de Change Limited Capital Limited Banking Operations

Babatunde Akindele Oyindamola Akinyemi Inwang Akpan Shuaib Audu
Head, Lagos Island Zone Executive Director, Stanbic IBTC Head, Transactional Products & Chief Executive, Stanbic IBTC
Capital Limited Services Investments Limited

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 293

Yomi Balogun Olanike Bajomo Kobby Bentsi-Enchill
Head, Global Market Sales Executive Director, Stanbic IBTC Executive Director, Stanbic IBTC
Pension Managers Limited Capital Limited

Olusola Carrena Olubunmi Dayo-Olagunju Olu Delano Omolola Fashesin
Executive Director, Stanbic IBTC Deputy Head, Operations, Head, Client Coverage Head, Risk & Capital Mgt.,
Capital Limited Stanbic IBTC Bank PLC Stanbic IBTC Holdings PLC

Abiodun Gbadamosi Anselem Igbo Okechukwu Iroegbu Busola Jejelowo
Head, Corporate & Investment Chief Executive, Stanbic IBTC Head, IT Plan & Build Head, Wealth & Investment
Banking Audit Insurance Brokers Limited Coverage

294 Stanbic IBTC Annual report for the year ended 31 December 2018

MPAAGNEATGIETMLEENT TEAM

Iretiola Lawal Babatunde Majiyagbe Binta Max-Gbinije
Acting Head, Personal & Executive Director, Stanbic IBTC Head, Commercial Banking
Business Banking Product Nominees Limited

Anthony Mogekwu Babalola Obilana Titilope Ogungbesan Nkolika Okoli
Acting Head, Legal, Stanbic IBTC Acting Chief Executive, Stanbic Chief Executive, Stanbic IBTC Head, Personal Banking
Bank PLC IBTC Asset Management Limited Stockbrockers Limited

Bunmi Olarinoye Dolu Olugbenjo Adebayo Olujobi Charles Omoera
Executive Director, Stanbic IBTC Head, Diversified Lending & Head, Corporate & Investment Chief Executive, Stanbic IBTC
Stockbrokers Limited Leverage Finance Banking Finance Trustees Limited

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 295

Matthew Onifade Charles Onwude Remy Osuagwu
Head, South West Zone Head, Personal & Business Head, Business Banking
Banking Credit

Olorundare Otitoju Adebanjo Otukomaya Oladipupo Oyefuga Akeem Oyewale
Head, Global Markets Trading Head, Lagos Mainland Zone Acting Head, Risk Chief Executive, Stanbic IBTC
Nominees Limited

Temitope Popoola Bala Y Shehu Alaba Sideso Oladele Sotubo
Head, Human Capital Head, North West Zone Manager, Executive Director, Stanbic IBTC
Stanbic IBTC Bank Regulatory Affairs Pension Managers Limited

296 Stanbic IBTC Annual report for the year ended 31 December 2018

STANBIC IBTC BANK BRANCH NETWORK

Lagos Island region Lagos Mainland region

1. I dejo 15. L ekki Admiralty Branch 1. Oba Akran
Plot 1712, Adeola Odeku, 1, Babatunde Masha Street, Lekki 20, Oba Akran Avenue, Ikeja
Victoria Island, Lagos Admiralty Way, Lekki Phase 1, Lagos
2. O gba
2. Awolowo Road Branch 85, 16. A fribank Street Branch 32, Ijaye Road, Ogba
Awolowo Road, Ikoyi Lagos Churchgate Building: Pc 30,
Churchgate Street, Victoria Island, 3. E gbeda
3. I dumagbo Branch Lagos 38, Shasha Road, Egba
61a, Idumagbo Avenue, Lagos Island
17. Lagos Service Centre 4. Agege
4. Broad Street Branch Plot 1321, Karimu Kotun Street, 75, Old Abeokuta Road
143/145, Broad Street, Lagos Victoria Island, Lagos
5. Oko Oba
5. O ke Arin Mini Branch 18. I gando Branch 327, Old Abeokuta Road
120, Alakoro Street, Marina, 51, Lasu-Iba Expressway, Igando,
Lagos Island, Lagos Lagos. 6. Ejigbo
91, Isolo Ikotun Road
6. O yingbo Mini Branch 19. A laba Branch
7, Coates Street, Oyingbo, Lagos H48/49, Alaba Intl Mkt, Ojo – Lagos 7. Ikotun
45, Idimu Road, Ikotun, Lagos State
7. H erbert Macaulay Branch 20. Balogun Business Association Branch
220, Herbert Macaulay Way, Yaba Plaza 3a, Portion C, Opposite Sokoto 8. Abule Egba
Plaza BBA, Trade Fair Complex 633, Lagos Abeokuta Road
8. H ead Office Branch
IBTC Place, Walter Carrington Crescent, 21. Festac Branch 9. Ipaja
Victoria Island, Lagos Gacoun Plaza, 23 Road, 142, Ipaja Road
Opp. K’ Close, Festac Town, Lagos
9. A detokunbo Ademola Branch 10. Oshodi
76, Adetokunbo Ademola Street, 22. Nigerian Ports Authority Branch Plot 14, Oshodi Apapa Express way
Victoria Island, Lagos Accounts Block, Nig. Ports Authority,
Wharf Road, Apapa, Lagos 11. A lausa
10. A jah Mini Branch IPML Avenue, Alausa, Ikeja
4a, Megawaves Plaza, Addo Road, 23. T incan Island Branch
Ajah Lagos 8, Apapa Oshodi Express Way, 12. O kota
Coconut B/Stop, Apapa, Lagos. 1, Alhaji Adenekan Street
11. Ajose Adeogun Branch
Plot 290e, Ajose Adeogun Street, 24. T rade Fair Branch 13. Surulere
Victoria Island, Lagos Hall 2, Olusegun Obasanjo Hall, 84, Adeniran Ogunsanya
Aspamda Plaza, Tradefair Lagos
12. Ikota Branch 14. Ojuwoye
194 Road 5, Ikota Shopping Complex, 25. W arehouse Road, Apapa Branch 214, Agege Motor Road, Ojuwoye
VGC, Lagos 10/12, Warehouse Road, Apapa, Lagos
15. L awanson
13. Lekki 1 Branch 26. Yinka Folawiyo Plaza, Apapa Branch 35, Lawanson Road, Surulere
1, Bis Way, Off Lekki-Epe Expressway, 38, Warehouse Road, Apapa, Lagos
Lekki, Lagos 16. T ejuosho
27. S atellite Town 77, Ojuelegba Road
14. Lekki 2 Branch Plot 389, Old Ojo Road, Abule Ado,
G & M Plaza, Km 18, Lekki–Epe Express Satellite Town, Lagos 17. Orile Coker
Way, Igbo-Efon, Lekki, Lagos 104, Market Street, Odunade Market

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 297

North Central region

18. Akoka 1. Grand Tower Mall Branch 16. B auchi
100, St. Finbarrs Road, Akoka Shop 9/10, Apo Mall, Abuja 16, Yandoka Road, Bauchi,
Bauchi State
19. A guda 2. Utako Branch
1/3, Enitan Street, Aguda 37, Ekukinam Street, Opp. ABC 17. Jos
Transport, Utako, Abuja 34, Ahmadu Bello Way, Jos
20. Shomolu
22, Market Street, Shomolu 3. M aitama Branch 18. N yanya
Plot 2777, Aguiyi Ironsi Way, Maitama Bomma Plaza, Sharp Corner, Opposite
21. Ladipo Mushin Abuja The Young Shall Grow Park, Mararaba,
103, Ladipo Street, Mushin, Lagos Abuja-Keffi Road, Nasarawa State.
4. Abuja Service Centre
22. G bagada 75, Ralph Sodeinde Street, CBD, Abuja 19. M inna
15, Diya Street, Ifako, Gbagada Beside Central Mosque, Bosso Road,
5. Abuja NNPC Minna
23. Allen Avenue Hebert Macaulay Way,
31, Allen Avenue, Ikeja Central Business District, Abuja 20. Kontagora
Opposite Hamson Nig Ltd, Lagos
24. NAHCO 6. W use II, Abuja Kaduna Road, Kontagora, Niger State
NAHCO complex, Off MMIA Plot 1387, Aminu Kano Crescent,
Wuse 11, Abuja 21. Mararaba
25. Toyin Street A1, Kwad Mall, Adjacent Mama Cass
36A, Toyin Street Ikeja 7. Nigeria Immigration Service Eatery, Abuja -Keffi Road, Mararaba,
Nigeria Immigrations H/Qtrs, Sauka Air Nasarawa State
26. Opebi Port Rd, Abuja
43, Opebi Road, Ikeja 22. M akurdi
8. A hmadu Bello Centre 5, Ogiri Oko Road, Makurdi
27. I korodu Town 1049 Ahmadu Bello Way Garki Abuja
108, Lagos Road, Ikorodu 23. L afia
9. Deidei Plot 1, Opposite Fatima House,
28. Ketu Shop W-9, Dei-Dei International Jos Road, Lafia.
463, Ikorodu Road Building Material Market, Dei-Dei,
Abuja 24. Jalingo
29. Maryland 22, Hammaruwa Way, Jalingo
10, Mobolaji Bank Anthony Way, Mary 10. A buja Garki Area 3
land Infinity House 11, Kaura Namoda 25. Gboko
Street, Off Faskari Crescent, Area 3 37, Captain Downs Street, Adekaa,
30. Osolo Way Gboko
61, Osolo Way 11. Garki Model
Plot 2, Ladoke Akintola Boulevard, 26. O tukpo
31. Ojodu Garki II, Abuja Enugu - Makurdi Road, Otukpo
102, Isheri Road, Ojodu
12. Gwagwalada 27. Y ola
32. O gudu Plot 415, Teaching Hospital Road, 1, Mohammed Mustapha Way
54, Ogudu Road, Ogudu Gwagwalada, Abuja
28. Maiduguri
33. Ikeja City Mall 13. K ubwa 35, Sir Kashim Ibrahim Way, Maiduguri
Shop L55, Ikeja City Mall Plot 71/72, Gado Nasko Way, Kubwa,
Abuja 29. Damaturu
Plot 591a, Njiwaji Layout, Damaturu,
14. S uleja Yobe State.
Opposite Division ‘A’ Police Station,
Minna Road, Suleja, Niger State 30. Gombe
No 22, Biu Road Gombe
15. L okoja
Opp. Kogi State Specialist Hospital, 31. M autech
Lokoja Modibbo Adama University of
Technology Yola

298 Stanbic IBTC Annual report for the year ended 31 December 2018

STANBIC IBTC BANK BRANCH NETWORK

North West region South South region

1. Kaduna Main 18. Dutse 1. T rans Amadi 2
14, Ahmadu Bello Way, Kaduna 14/15 Sani Abacha Way, Dutse 87, Trans Amadi Industrial Layout

2. Kaduna Central 19. K antin Kwari 2. T rans-Amadi 1
1, Bayajidda Road No 71a Fagge Takudu Kantin Kwari 7, Trans-Amadi Road,Port Harcourt

3. Kachia Road 20. Bello Road 3. Port Harcourt Service Center
A7, Kachia Road 31/32 Bello Road 133a Olu Obasanjo Road, Port
Harcourt.
4. K aduna Nnpc 21. K ano Service Centre
Km 16, Kachia Road, Kaduna. 3 Bank Road 4. Eleme Branch
Iepcl Eleme, Port Harcourt,
5. Kasuwa Barci 22. Shauchi Rivers State
Ah6, Gamagira Road, T/Wada Kaduna Umma Bayero House Shauchi
5. Aba Road
6. Kawo Mando 23. Hotoro 171, Aba Road, Port Harcourt
Jaas Plaza, Zaria Road, Kawo, Kaduna Maiduguri Road Hotoro
6. Port Harcourt Airport
7. S abon Tasha Phc Int’l Airport, Omagwa
32, Kachia Road, Sabon Tasha Kaduna
7. Artillery
8. Samaru 234, Aba Road, Port Harcourt
2, Sokoto Road, Samaru, Zaria, Kaduna
8. Y enagoa
9. S abon Gari Zaria 623, Melford Okilo Road, Yenagoa
7a, Aminu Road, Sabon Gari, Zaria
9. O yigbo
10. Zaria City Kilometre 37, Aba-Port Harcourt
90, Angwan Mallam Sule Bakin Express Road, Oyigbo, Port Harcourt,
Kasuwa, Zaria City Rivers State

11. Katsina 10. Calabar
175, Kurfi House, IBB Way, Katsina 71, Marian Road, Calabar,
Cross River State
12. G usau
68, Ahmadu Bello Way 11. Uyo
65, Nwaniba Road, Uyo
13. Sokoto
68, Maiduguri Road 12. E ket Branch
2, Grace Bill Road, Eket Town
14. Kebbi Branch
68, Ahmadu Bello Way, Birnin Kebbi 13. Whatt Market
45, Bedwell Street, Calabar
15. Zaria Main
9, Kaduna Road, PZ Zaria 14. Airport Road Warri
23, Ogunu Road, Warri
16. B ayero University
Gwarzo Road, Bayero University New 15. W arri Main
Campus, Kano 98, Effurun/Sapele Road, Effurun,
Delta State
17. S abon Gari Kano
1, Galadima Road Sabon Gari-Kano, 16. Olu Obasanjo
Kano 58, Olu Obasanjo Road, Port Harcourt

OVERVIEW BUSINESS REVIEW ANNUAL REPORT & FINANCIAL STATEMENTS OTHER INFORMATION 299

South East region South West region

1. Ariaria 1. Oyo 16. S ango Otta 2
189, Faulks Road, Aba Oyo/Ogbomoso Road, Oyo Town Km 38, Abeokuta Expressway,
Sango Otta, Ogun State
2. U muahia 2. A godi Gate
2, Market Road, By Library Avenue, Inaolaji Business Complex, Agodi Gate, 17. S hagamu
Umuahia Ibadan 167, Akarigbo Road, Shagamu,
Ogun State
3. Aba Main 3. UI Road
7, Factory Road, Aba, Abia State UI Road, Sayora Building, 18. S apon
Opposite UI 2nd Gate, Ibadan 2a, Lantoro Road, Isale-Ake, Abeokuta
4. Sapele Road
131a, Sapele Road, Benin City, 4. Ibadan Main 19. R ing Road
Edo State UCH-Secretariat Road, 1b, Moshood Abiola Road, Ring Road,
By Total Garden, Ibadan Ibadan, Oyo State
5. New Benin
174, Upper Mission Road, 5. Iwo Road 20. S ango Otta 1
By Constain Junction, Benin City Baloon House, Iwo Road, Ibadan 101, Idi Iroko Otta Road, Sango Otta,
Ogun State
6. Benin Main 6. Iwo Town
71, Akpapava Street, Benin 147, Ejigbo Road, Araromi - Sabo, 21. Ijebu Ode
Iwo Town 58, Ibadan Road, Ijebu-Ode, Ogun
7. Uniben
Bank Road, University of Benin, 7. I yana Church 22. I fe
Ugbowo Campus Ibitola Plaza, Iyana Church, Ibadan, 5, Obalufon-Lagere Road,
Oyo State Lagere Junction, Lle-lfe
8. Awka
49, Zik Avenue Awka 8. Saki 23. Ilesha
Beside Saki West Local Government 1a198, Osogbo Road, Ishokun,
9. Onitsha Main Secretariat, Sango - Ajegunle Road Ilesha, Osun State
13, Bright Street, Main Market, Saki, Oyo State
Onitsha 24. I lorin
9. New Gbagi 11, Unity Road (Amosu House)
10. O nitsha Head Bridge Bashmus and Ayimur Plaza,
56, Port Harcourt Road, Onitsha Opp Texaco Station, Gbagi, Ibadan 25. O jatuntun
A171, Abdulazeez Attah Road,
11. Enugu 10. Aleshinloye Surulere, Ilorin
1 Garden Avenue, Besides EEDC Eleyele Road, Nigerian Army Housing
Regional Office, Okpara Avenue, Scheme, Ibadan 26. K wara Mall
Enugu 11, Unity Road, Ilorin, Kwara State
11. Mokola
12. Abakaliki 18b, Oyo Road, Mokola, Ibadan 27. O gbomoso
10, Old Ogoja Road, Abakaliki Ilorin-Ogbomoso Road, Sabo Area,
12. Gbagi Ogbomoso Town
13. P olomall Aje House Annexe, Opposite Obisesan
Shop 56, Polo Park Mall, Hall, Lebanon Street, Old Gbagi, 28. Ado Ekiti
Abakaliki Road, Enugu Ibadan Ado-lyin Express Road, Ado Ekiti,
Ekiti State
14. Owerri 13. Abeokuta
81, Okigwe Road, Owerri, Imo State. 2a, Lantoro Road, Isale-Ake, Abeokuta 29. Ondo
62, Yaba Road, Ondo Town,
15. Aba Market 14. A gbara Ondo State
7, Duru Street, Off Cemetery Road, Agbara Estate Shopping Mall,
Aba Agbara Industrial Estate, Agbara 30. A kure
GNI Building, Off Old Ado/Owo Road,
16. A saba 15. Challenge Akure
206, Nnebisi Road, Asaba 127, Orita Challenge, Ibadan,
Oyo State 31. Oshogbo
201, Gbogan – Ibadan Road, Osogbo,
Osun State

300 Stanbic IBTC Annual report for the year ended 31 December 2018

CONTACT INFORMATION

Idris Toriola Adekunle Adedeji Chidi Okezie Bridget Oyefeso-Odusami
Head, Investor Relations & Strategy Chief Financial Officer Company Secretary Head, Marketing & Communications
T: +234 1 4228501 T: +234 1 4228767 T: +234 1 4228695 T: +234 1 4227109
E: [email protected] E: [email protected] E: [email protected] E: [email protected]

Registered address
I.B.T.C. Place
Walter Carrington Crescent
P.O. Box 71707
Victoria Island, Lagos
Nigeria

E: [email protected]