Sterling Bank (Nigeria)

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Sterling Bank Plc
TypePublic Limited Company
IndustryBanking
Founded1960
Headquarters
Sterling Towers, 20 Marina, P.M.B. 12735, Lagos, Lagos State
,
Nigeria
Key people
₦ 10.6 billion (FY 2019)
Total assets₦ 1.18 trillion (FY 2019)
Total equity₦ 119.8 billion (FY 2019)
Number of employees
>2401 (FY 2019)
Divisions161 Business Offices, 858 ATMs (FY 2019)
Websitewww.sterling.ng

Sterling Bank Plc, which is a full service national commercial bank is licensed by the Central Bank of Nigeria. Its shares trade under the Banking sector of the Nigerian Stock Exchange with the symbol STERLNBANK.[1] On Reuters and Bloomberg terminals, it is identified as STERLNB.LG and STERLNBA:NL respectively.[2][3]

The bank provides services to individuals, small businesses (SMEs) and large corporations. As of December 2019, the bank's branch network numbered 161,[4] distributed throughout Nigeria with total assets valued in excess of NGN 1 trillion and shareholders' equity estimated at about NGN 119.8 billion).[4]

History[]

Sterling Bank Plc originally incorporated in 1960 as Nigeria Acceptances Limited (NAL). The bank was licensed as Nigeria's first merchant bank in 1969. Consequent to the indigenization decree of 1972, the Bank became fully government owned and was managed in partnership with Grindlays Bank Limited, Continental International Finance Company Illinois and American Express Bank Limited between 1974 and 1992. In 1992, the Bank was partly privatized and listed as a public company on the Nigeria Stock Exchange (NSE). Eight years later, in 2000, the Federal Government sold its residual interest in the bank, effectively making it a fully privatized institution.[5]

In January 2006, as part of the consolidation of the Nigerian banking industry, NAL Bank completed a merger with four other Nigerian Banks namely, Magnum Trust Bank, NBM Bank, Trust Bank of Africa and Indo-Nigeria Merchant Bank (INMB) and adopted the name 'Sterling Bank'.[6] The merged entities were successfully integrated and have operated as a consolidated group ever since.

In line with the Central Bank of Nigeria's repeal of universal banking, Sterling Bank now operates as a national commercial bank, disposing of holdings in subsidiaries and affiliate companies. In mid-2011, Sterling Bank Plc acquired the franchise of the erstwhile Equatorial Trust Bank.[7]

Operations[]

The Bank's operations and products are grouped in four clusters:

Retail & Consumer Banking (with several initiatives such as Agent Banking to attract the underbanked/unbanked,[8] Micro-credit for youths and Spectra, an automated retail lending platform), Commercial Banking (dealing in several sectors including Agriculture[9] for which the bank has won awards), Institutional Banking (that offers value adding advisory & collection services for government parastatals) and the Corporate (covering several sectors including Telecommunications, Power and Steel, Food and Beverages among others.[10]

The bank operates from:

  • Head Office 20 Marina, Lagos
  • 161 branches across the country
  • 7,853 POS terminals with several merchants
  • 858 ATMs across the country

Specialized Services[]

  • Private Banking and Wealth Management

The Bank also caters to High Net Worth individuals through their Private Banking and Wealth Management arm offering products such as Trust and Fiduciary Services, Philanthropy Management, Investment Advisory, among others.[11]

  • Sterling Alternative Finance (SAF) (Non-Interest Banking)

In 2013, the Bank was licensed by the Central Bank of Nigeria to provide non-interest banking services after meeting the set criteria.[12] The alternative banking products are split into three facets: Transactional, Investment, and Financing.[13] The Bank has set up this arm of business in line with global best practice in this regard by having an Advisory Committee of Experts (ACE) who approve all products and processes while ensuring they are fully compliant with the rules of Islamic commercial jurisprudence. The Bank's Advisory Committee of Experts (ACE) includes Sheikh Abdulkader Thomas (US/Kuwait); Sheikh Abubakar Musa (Minna); and Imam Abdur-Raheem Ahmad Sayi (Lagos).[14][15]

2019 Performance Highlights[]

Sterling Bank delivered a set of results in 2018 as follows:[16]

  • Gross earnings grew by 1.0% to N150.2 billion in 2019;
  • Interest income was a major driver of earnings contributing 84.5%, having risen by 2.0% to N127.0 billion (FY 2017: N125.2 billion);
  • Net interest income increased by 17.0% to N64.7 billion (FY 2018: N55.3 billion);
  • Operating expenses increased marginally by 12.0% to N71.1 billion (FY 2018: N63.5 billion);
  • Profit before tax increased by 12.5% to N10.7 billion, while profit after tax grew to N10.6 billion;
  • Total assets grew by 7.2% to N1,182.7 billion from N1,102.9 billion in December 2019;
  • Net loans and advances declined by 0.4% to N618.7 billion (FY 2018: N621.0 billion);
  • Customer deposits increased by 17.4% to N892.7 billion (Dec. 2018: N760.6 billion);
  • Shareholders’ fund increased by 22.2% to N119.8 billion from N97.8 billion in December 2018;
  • Capital adequacy ratio was 140 basis points above regulatory threshold at 14.7%.

Social responsibility[]

The Bank carries out corporate social responsibility in these areas: education, the environment, health, empowerment, sports development, capacity building, among others.[17]

Board Of Directors[]

Source:[18]

  • Asue Ighodalo – Chairman
  • Abubakar Suleiman – Managing Director/Chief Executive Officer
  • Grama Narasimhan - Executive Director
  • Yemi Odubiyi - Executive Director
  • Emmanuel Emefienim - Executive Director
  • Raheem Owodeyi - Executive Director[19]
  • Tunde Adeola- Executive Director[20]
  • Michael Jituboh – Non-Executive Director
  • Olaitan Kajero - Non-Executive Director
  • Tairat Tijani - Non-Executive Director
  • Folasade Kilaso - Non-Executive Director
  • Subbaramaiah Rajapur - Non-Executive Director
  • Michael Ajukwu – Independent Director
  • Omolara Akanji, MON – Independent Director

Mr. Abubakar Suleiman is the current Managing Director/Chief Executive Officer, assuming this position on 1 April 2018.

See also[]

References[]

  1. ^ "The Nigerian Stock Exchange (NSE) - Live". www.nse.com.ng. Retrieved 2017-08-29.
  2. ^ Editorial, Reuters. "Business & Financial News, U.S & International Breaking News | Reuters". U.S. Retrieved 2017-08-29.
  3. ^ "Bloomberg.com". Bloomberg.com. Retrieved 2017-08-29.
  4. ^ a b "Sterling FY 2019 Investor Presentation" (PDF). Sterling Bank. 25 February 2021. Retrieved 25 February 2021.{{cite web}}: CS1 maint: url-status (link)
  5. ^ http://unpan1.un.org/intradoc/groups/public/documents/aapam/unpan028228.pdf
  6. ^ "About Sterling | Sterling Bank Plc - The One-Customer Bank". sterlingbankng.com. Retrieved 2016-04-22.
  7. ^ "Sterling Bank signs acquisition agreement with ETB - Vanguard News". Vanguard News. Retrieved 2016-04-22.
  8. ^ "Agent Banking | Sterling Bank Plc - The One-Customer Bank". sterlingbankng.com. Retrieved 2016-04-22.
  9. ^ "Commercial Agricultural Credit Scheme | Sterling Bank Plc - The One-Customer Bank". sterlingbankng.com. Retrieved 2016-04-22.
  10. ^ "Corporate Sectors | Sterling Bank Plc - The One-Customer Bank". sterlingbankng.com. Retrieved 2016-04-22.
  11. ^ Plc, Sterling Bank. "Welcome | Sterling Bank Private Banking". sterlingbankng.com. Retrieved 2016-04-22.
  12. ^ Technologies, MindFusion. "Other Market Operators » Non-Interest Finance". noninterest.org.ng. Retrieved 2016-04-22.
  13. ^ "Sterling Alternative Finance  ::: Non-Interest Banking". www.saf.ng. Retrieved 2016-04-22.
  14. ^ "Sterling Advisory Committee  ::: Non-Interest Banking". www.saf.ng. Retrieved 2016-04-22.
  15. ^ "Sterling Bank launches 'Switch' free money transfer service for Nigerians in diaspora  ::: Non-Interest Banking". Naijalitz.com. Retrieved 2020-10-28.
  16. ^ "STERLING BANK PLC RELEASES AUDITED RESULTS FOR THE YEAR ENDED DECEMBER 31, 2019" (PDF). 31 December 2019.{{cite web}}: CS1 maint: url-status (link)
  17. ^ "Corporate Social Responsibility | Sterling Bank Plc - The One-Customer Bank". sterlingbankng.com. Retrieved 2016-04-22.
  18. ^ Editorial, Reuters. "${Instrument_CompanyName} ${Instrument_Ric} People | Reuters.com". U.S. Retrieved 2018-07-31.
  19. ^ Famuyiwa, Damilare (2019-05-02). "Sterling Bank Plc discloses appointments of 3 new directors". Nairametrics. Retrieved 2020-12-30.
  20. ^ Famuyiwa, Damilare (2019-05-02). "Sterling Bank Plc discloses appointments of 3 new directors". Nairametrics. Retrieved 2020-12-30.

External links[]

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