Shareholders of Sterling Financial Holdings Company Plc, have approved the HoldCo expansion plan.
The Holding Company for the year ended December 31, 2023 delivered a 36 per cent increase in its assets size, growing to N 2.5 trillion, and a 26.6 per cent rise in its earnings to deliver N221 billion. Both figures represent a significant increase in the group’s performance as contained in its annual report and financial statements for the 2023 financial year.
Dissecting the numbers further, the Group earned N156 billion and N65.7 billion in interest and non-interest income respectively, representing a growth of 21.5 per cent and 40.6 per cent from the 2022 financial year’s numbers. It achieved this while attracting N1.8 trillion in customers’ deposits into its two banking subsidiaries: Sterling Bank and The Alternative Bank.
These have helped the Group post N21.6 billion in profit, and a 75 kobo in earnings per ordinary share for 2023.
Speaking on the Company’s immediate plans, Group chief executive officer of Sterling HoldCo, Yemi Odubiyi, said “in line with evolving regulatory standards and the recent introduction of minimum capital requirements by the Central Bank of Nigeria (CBN), we will be seeking shareholders’ approval to raise up to N200 billion from the market. This capital infusion will strengthen and position us for sustained growth.”
Odubiyi also highlighted the performance of the holding company’s current subsidiaries; Sterling Bank, a conventional bank, and The Alternative Bank, an ethical banking business, and intimated shareholders on the group’s intentions to build non-banking revenue lines to progress the group’s rapid growth and capture even more value for shareholders by offering a wider range of services under the trusted Sterling brand.
The group CEO stated that the group will continue its current trajectory by maintaining a customer-centric approach, while making strategic investments in sustainable ventures that align with the company’s core values.
Industry observers recalled that Sterling HoldCo recently completed a significant milestone by transforming from a bank to a full-fledged financial holdings company by delisting, transferring, and relisting all shares to the Sterling Financial Holdings Company on the floor of the NGX.
The holding company affords Sterling the opportunity to leverage its successful HEART strategy, which has seen the group make consolidated investments in the Health, Education, Agriculture, Renewable Energy, and Transportation sectors, growing the company’s year-on-year profits to record highs in recent years.
With the adoption of the Holdco structure now in full effect, Sterling now possesses the latitude to make inroads into other sectors within financial services, such as pensions, asset management, payment services, real estate, and different verticals, along with the current banking licences held by the commercial and ethical banking subsidiaries, Sterling Bank and The Alternative Bank, which will operate as limited liability companies within the publicly traded holding company.