2013 Stanbic IBTC Annual Report
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Stanbic IBTC Holdings PLC Annual report 2013 Stanbic IBTC Annual group financial statements for the year ended 31 December 2013 1 Overview Business Annual report and Other review financial statements information Contents Overview 4 Our vision and values 6 Corporate profile 8 Our network 10 Recognition Business review 16 Chairman’s statement 20 Chief executive’s statement 24 Economic review 28 Financial review 54 Executive committee 58 Personal and Business Banking 60 Case study – NBC 62 Case study – Erisco Foods Limited 66 Corporate and Investment Banking 70 Case study – Danone and Abraaj story 72 Case study – Power and infrastructure story 76 Wealth 82 Abridged sustainability report 86 Enterprise risk review Annual report and financial statements 118 Board of directors 120 Directors’ report 125 Statement of directors’ responsibility 126 Corporate governance report 140 Report of the audit committee 141 Independent auditor’s report 142 Statement of financial position 143 Statement of profit or loss 150 Statement of cash flows 151 Notes to the annual financial statements 228 Annexure A 229 Annexure B Other information 234 Management team 238 Branch network 243 Contact information All results in this booklet are presented on an IFRS (International Financial Reporting Standards) basis. 2 Stanbic IBTC Annual group financial statements for the year ended 31 December 2013 3 Balance sheet Capital Market and Shareholder Other analysis management information information Overview Overview 4 Our vision and values 6 Corporate profile 8 Our network 10 Recognition 4 Stanbic IBTC Annual group financial statements for the year ended 31 December 2013 5 BalanceOverview sheet Business Annual report and Other Overview analysis review financial statements information Our vision and values To be the leading end-to-end financial solutions provider in Nigeria through innovative and customer-focused people. The values that underpin our strategy Upholding the Growing Serving our Respecting Delivering to Being Guarding Working highest levels our people customers each other our shareholders proactive against in teams of integrity arrogance We encourage and help We do everything in our We have the highest We understand that we We strive to stay ahead We, and all aspects of our our people to develop to power to ensure that we regard for the dignity of earn the right to exist by anticipating rather work, are interdependent. Our entire business We have confidence in their full potential and provide our clients with all people. We respect by providing appropriate than reacting, but our We appreciate that, as model is based on our ability to achieve measure our leaders on the products, services each other and what long-term returns to actions are always teams, we can achieve trust and integrity ambitious goals and we how well they grow and and solutions to suit their Stanbic IBTC stands our shareholders. We carefully considered. much greater things than as perceived by our celebrate success, but we challenge the people needs, provided that for. We recognise that try extremely hard to as individuals. We value stakeholders, especially never allow ourselves to they lead. everything we do for there are corresponding meet our various targets teams within and across our clients. become arrogant. them is based on sound obligations associated and deliver on our business units, divisions business principles. with our individual rights. commitments. and countries. 6 Stanbic IBTC Annual group financial statements for the year ended 31 December 2013 7 BalanceOverview sheet Business Annual report and Other Overview analysis review financial statements information Corporate profile Stanbic IBTC was incorporated as Investment Banking and Trust Company Limited, a private limited liability company on 2 February 1989. IBTC was granted a merchant banking license in February 1989 and commenced operations on 1 March 1989. Corporate and Personal and IBTC’s merchant banking license was converted to a universal banking license in January 2002, pursuant to the universal banking Investment Banking Business Banking Wealth guidelines of the CBN. In 2005, IBTC became a public company and its shares were listed on The Nigerian Stock Exchange. (CIB) (PBB) In December 2005, IBTC merged with Chartered Bank PLC and Regent Bank Plc and changed its name to IBTC Chartered Bank Plc (“IBTC Chartered”) on 25 January 2006. On 24 September 2007, IBTC Chartered merged with Stanbic Bank Nigeria Gross revenue Gross revenue Gross revenue Limited (“Stanbic Bank”), a wholly owned subsidiary of Stanbic Africa Holdings Limited (“SAHL”), which in turn is a subsidiary of Standard Bank Group Limited of South Africa. As part of the transaction that resulted in the combination of IBTC Chartered and N58.5 billion N34.0 billion N18.7 billion Stanbic Bank, SAHL acquired a majority shareholding (52.8%) in the enlarged bank, which was named Stanbic IBTC Bank PLC. Corporate and investment Banking and other financial Investment management in banking services to government, services to individual customers form of asset management, parastatals, larger corporates, and small to medium sized pension fund administration financial institutions and enterprises. and trusteeship. international counter-parties Stanbic IBTC Holdings PLC in Nigeria. 99.9% 99.9% 99.9% 70.6% 99.9% Stanbic IBTC Stanbic IBTC Stanbic IBTC Stanbic IBTC Stanbic IBTC Bank PLC Asset Capital Pension Investments Gross revenue Total income Management Limited Managers Limited Limited Limited Wealth Corporate and Wealth Corporate and 17% Investment Banking 22% Investment Banking 52% 48% 99.9% 99.9% 99.9% 99.9% 99.9% Stanbic IBTC Stanbic Stanbic IBTC Stanbic IBTC Stanbic IBTC Bureau de Nominees Stockbrokers Trustees Ventures Change Nigeria Limited Limited Limited Limited Limited Personal and Personal and business business banking banking Stanbic IBTC Holdings is a full service financial institution which offers a wide range of products to a variety of segments. 31% 30% Stanbic IBTC provides end-to-end financial solutions which include corporate and investment banking, personal and business banking, stockbroking and wealth management. Total deposit Gross loans and advances Standard Bank Group, to which Stanbic IBTC Bank belongs, is rooted in Africa with strategic representation in 20 key sub- Saharan countries and other emerging markets. Standard Bank has been in operation for over 150 years and prides itself on Personal and Corporate and Personal and Corporate and being a global bank with African roots. The largest African bank by assets and earnings, it operates in 20 countries on the Business Investment Banking Business Investment Banking African continent, including South Africa, as well as in other selected emerging markets. Banking 52% Banking 56% 48% 44% We uphold high standards of corporate governance and are committed to advancing the principles and practice of sustainable development. Our success and growth over the long term is built on making a difference in the communities in which we operate. 8 Stanbic IBTC Annual group financial statements for the year ended 31 December 2013 9 BalanceOverview sheet Business Annual report and Other Overview analysis review financial statements information Our network Group overview Market capitalisation R209 billion 48,808 employees (USD20 billion) (2,077 in Nigeria) Total assets R1,694 billion 1,283 branches (USD162 billion) (180 in Nigeria) Operating in 5 20 African countries 9,300 ATMs 3 6 13 15 and 13 countries outside Africa (359 in Nigeria) 7 1 Angola 18 2 Botswana 3 Cote d’ivoire 4 17 Nigeria overview 4 DRC 1 5 Ethiopia 9 Branches ATMs 6 Ghana 19 12 FCT Abuja region 21 FCT Abuja region 7 Kenya 20 15 Lagos Island region 41 Lagos Island region 8 Lesotho 11 12 48 Lagos Mainland region 98 Lagos Mainland region 9 Malawi 10 8 North Central region 16 North Central region 10 Mauritius 2 9 North East region 13 North East region 11 Mozambique 16 22 North West region 38 North West region 12 Namibia 8 21 South East region 31 South East region 13 Nigeria 12 South South region 35 South South region 14 South Africa 14 33 South West region 66 South West region 15 South Sudan 16 Swaziland 17 Tanzania 18 Uganda 19 Zambia 20 Zimbabwe 10 Stanbic IBTC Annual group financial statements for the year ended 31 December 2013 11 BalanceOverview sheet Business Annual report and Other Overview analysis review financial statements information Recognition Awards – 2013 1. Best Foreign Exchange Provider in Africa and Nigeria 4. Best sub-custodian bank in Nigeria 2013 7. Best Investment Management Company in Nigeria 11. Best FX Provider in Nigeria Global Finance Awards 2013 Global Finance magazine awards World Finance (awarded to Stanbic IBTC Asset Global Finance Magazine at SIBOS Management) 2. M & A Deal of the Year 5. Bank of the Year 12. 2013 Best Bank in Nigeria Award The Banker’s awards (2013) for the Tiger Brand’s The Nigerian Auto Awards 2013 (On Wheels Auto 8. Best Investment Bank in Nigeria Euromoney Real Estate Survey acquisition of a 63 percent stake in Nigeria’s Dangote Awards 2013) EMEA Awards Flour Mills 13. The Most active Dealing Member Firm 6. Most innovative banking product 9. Best Broker in Nigeria (Stockbroking) 3. Structured Finance Deal of the Year Stanbic IBTC Bank consumer loan (Businessday Annual EMEA Awards The Nigerian Stock Exchange CEO Award 2013 (The Banker’s awards (2013) for the USD150-million Awards 2013) Skye Bank Remittances Future Flow Securitisation 10. Best Sub-Custodian in Nigeria in Nigeria Global