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Sterling Bank Assures Shareholders of Better Performance

May 5, 2014

Shareholders of Sterling Bank Plc have been assured of improved performance that would lead to higher returns in the years ahead. Giving the assurance at the annual general meeting (AGM) of the bank in Lagos last week, the Managing Director, Mr. Yemi Adeola, said the financial institution would surpass its previous performance this year and beyond.

He explained that Sterling Bank's business model and execution capabilities are resilient enough to ensure sustained growth over the years, the challenging operating environment notwithstanding.

He said: "We will pursue our capital raising programme with single-mindedness and prioritise risk management in order to strengthen the foundation for an enduring institution. We will also speed up investments to grow our retail funding base and emphasise service delivery across all channels to enhance our customers' experiences."

The bank ended 2013 with gross earnings of N91.6 billion, up from N68.7 billion in 2012. Profit before tax rose from N7.50 billion in 2012 to N9.31 billion in 2013, while profit after tax increased from N6.95 billion to N8.27 billion.

As a sign of confidence in the bank, customer deposits rose 23 per cent to N570.5 billion as against N466.8 billion, just as total assets including contingent liabilities increased by 28 per cent to N909.4 billion compared with N708.2 billion in 2012.

Meanwhile, shareholders of the bank, who commended the board and management on the 2013 performance, increased the authorised share capital of the bank from N12 billion to N16 billion to create headroom for the future funding raising.

The shareholders unanimously created new 8.0 billion ordinary shares of 50 kobo each to increase the authorised shares of the bank from 24 billion ordinary shares of 50 kobo each to 32 billion ordinary shares of 50 kobo each.

The increase came as the bank reaffirmed that it would realise other components of its $400 million tier-three capital raising exercise, which had been approved by the shareholders in 2013.

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Source: AllAfrica

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