– As Shareholders laud performance
Sterling Bank considers holding company structure – Sterling Bank Plc is considering changing from its current operating structure to a holding company structure, which will group the commercial bank and its other subsidiaries under a parent company.
Addressing shareholders yesterday at the annual general meeting in Lagos, Chairman, Sterling Bank Plc, Mr. Asue Ighodalo, said the bank is considering a change to a holding company structure.
According to him, the board of the bank decided to retain most of its net earnings for the previous business year because of additional capital required to finance the bank’s growth ambition and its proposed holding company structure.
Under the banking regulatory regime introduced by the Central Bank of Nigeria (CBN) in 2010, banks were required to concentrate fully on core banking functions. The model required banks to either sell all non-core banking businesses or form a holding company to hold such non-core banking businesses including activities such as insurance, asset management and capital market operations. Most banks opted to sell or divest from non-core commercial banking businesses.
Three banks currently operate under holding company structure including First City Monument Bank (FCMB) Plc, First Bank of Nigeria (FBN) Plc and Stanbic IBTC Bank Plc. Ecobank Transnational Incorporated-a pan-African holding company, is the parent company for Ecobank brand.
Ighodalo assured shareholders of the bank’s commitment to delivering tailor-made solutions in line with the Global Sustainable Development Goals (SGDs) and Central Bank of Nigeria’s Sustainable Banking Principle.
“As a business, we will continue to innovate with focus on key growth sectors of the Nigerian economy that will enrich lives and grow the bottom-line. We will also continue to leverage on our areas of strength to drive sustainable growth and deliver superior returns to our esteemed shareholders,” Ighodalo said.
According to him, the bank remains committed to delivering solutions that satisfy stakeholders’ needs and objectives while also providing adequate financial returns to shareholders.
He pointed out that retaining a substantial amount of profit generated to strengthen available capital will be in the long-term best interest of shareholders.
Managing Director, Sterling Bank Plc, Mr. Abubakar Suleiman, said the bank’s 2017 financial year performance highlighted its underlying institutional strength despite delicate operating conditions.
“We will continue to execute the plans to drive efficiency across the business under the three pillars of agility, digitization and specialization in the new financial year. These pillars will propel us toward sustainable growth by enhancing our ability to innovate; solidify our retail funding base; strengthen our enterprise-wide risk management framework and drive excellent service delivery across all channels to enhance customer experience,” Suleiman said.