Standard Bank’s local unit in Nigeria, Stanbic IBTC has one thing working for it, the bank focused on bringing in capital inflows into Nigeria.
Within the second quarter of the year, Stanbic IBTC processed 32.91% of total capital inflows, this was according to data released by the National Bureau of Statistics, NBS Nigeria’s data that recently declared an to the country’s recession.
Stanbic IBTC accounted for 32.91 percent ($589.84 million or N216.47 billion) of the total share during the period, representing an increase of 9.12 percent over the $536.78 million it posted in the first quarter of the year. That brings to $1.127 billion (N413.62 billion) capital importation by Stanbic IBTC in the first six months of the year.
The trio of Stanbic IBTC, Citibank Nigeria and Standard Chartered Bank accounted for 70.7 percent or $1,267.8 million of the total $1.792 billion capital importation during the quarter, while the other 22 banks generated the rest.
According to the report, Portfolio Investments was the key mover of capital during the quarter, growing by 145.7 percent, followed by Other Investments, which rose by 95.02 percent, and Foreign Direct Investment (FDI) by 29.8 percent over the first quarter. In figures, Portfolio Investment accounted for $770.5 million, or 43.0 percent of the total. In second place was Other Investments with $747.5 million, or 41.7 percent, and FDI with $274.4 or 15.3 percent.
Stanbic IBTC’s position as the major handler of foreign capital inflow further shows the offtake of the funds was from the United Kingdom, which accounted for $696.7 million or 38.87 percent of the total. The second largest value of capital importation came from the United States with $287.82 million or 16.06 percent.
The latest position of Stanbic IBTC in capital inflow further shows they are coming back into the country.
The NBS said Nigeria’s economy grew by 0.55% in the second quarter of the year as opposed to about -2.6% fall within the same period last year. The latest capital inflow report further corroborates the data.
As Nigeria’s recession lose steam with a relative ease in the Forex market, portfolio investors have started taking positions in Nigeria’s stock market as well as foreign direct investment purposes.