• Thursday, March 28, 2024
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Shareholders laud Sterling Bank’s improved performance

Sterling Alternative Finance launches AltInvest to offer investment opportunities

Shareholders of Sterling Bank Plc have commended the board and management of the bank for the remarkable display of resilience, improved financial performance and returns on investment in 2020 despite the adverse impact of the Covid-19 pandemic on the global and local economic environment.

They also approved resolutions for the declaration of a dividend of five kobo per share, the election of directors, remuneration of auditors, and the election of shareholders’ representatives on the statutory audit committee.

The shareholders gave the commendation and approved recommendations at the 59th Annual General Meeting (AGM) of the bank held by proxy in Lagos last Thursday and streamed live across digital platforms. The Corporate Affairs Commission (CAC) had approved attendance at the AGM to be by proxy only due to restriction on large gatherings to prevent further spread of the COVID-19 pandemic.

Commenting on the bank’s performance, Matthew Akinlade, President of Nigeria Solidarity Shareholders Association (NSSA), commended the bank for consistently improving on its earnings per share in the last five years.

In her comments, Bisi Bakare, National Coordinator of Pragmatic Shareholders Association, congratulated the bank for another successful year. She applauded the Board and Management for the significant growth in total assets and deposit base, improved retained earnings, increased profit before tax and reduced operating costs and non-performing loans.

Boniface Okezie, National Chairman of Progressive Shareholders Association, also commended the bank for its achievement in a pandemic year. He appreciated the bank’s management for the consistent dividend payout while urging it to continue to pursue its repositioning strategies aggressively to ensure it competes favourably in the industry.

On his part, Faruk Umar, President, Association for Advancement of the Rights of Nigerian Shareholders (ARNS), described the bank’s performance as excellent and commended it for its accounts’ quality. It was the same for Adebayo Adeleke, Managing Director Lancelot Ventures Limited, who commended the bank for implementing a deliberate market-focused strategy.

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Other shareholders who commented on the bank’s commendable performance include Oludewa Thorpe, National Secretary for the National Co-ordinating Committee of Shareholders Association; Kabiru Tambari; Gbenga Idowu, National Coordinator of Shareholders United Front and Ridhwan Hamza.

Addressing shareholders at the meeting, Asue Ighodalo, Chairman of the Board of Directors of the bank, remarked that the bank focused on the continued strategic development of its core pillars – Digitisation, Agility and Specialisation – in a challenging year.

He said the bank has effectively engaged with existing and potential customers and responded to market trends and developments while maintaining its long-standing commitment to innovation.

Ighodalo said, “Sterling Bank sustained an improvement in business performance during the year under review despite the harsh economic environment triggered by the Covid-19 pandemic. Although earnings declined by 7.5 percent to N138.9 billion, we delivered a 15.9 percent growth in profit before tax and a 6 percent growth in profit after tax to N12.4 billion and N11.2 billion respectively.”

He noted that in line with the commitment to drive operational efficiency across the organisation, the bank achieved a 2.5 per cent reduction in operating expenses as it continues to leverage on past investments made in technology.

He said the bank closed the year with an improved balance sheet position as total assets grew steadily by 9.8 percent to N1.3trillion in 2020. This was driven by consolidated efforts in mobilising customer deposits, leading to a record 6.5 percent growth in deposit base to reach N950.8billion from N892.7 billion in 2019.

The bank achieved a 39.5 percent growth in low-cost current and savings accounts deposits resulting in an improved deposit mix of 78.9 per cent (CASA/total deposit) during the year under review. Ighodalo said this contributed largely to the improved cost of funds from 6.3 percent in 2019 to 4.7 percent in 2020 below the five percent threshold. The bank also grew shareholders’ funds by 13.5 percent to N135.8 billion on the back of a rise in retained earnings.

The Chairman said the bank continues to prioritise the interest of shareholders while maintaining adequate capital buffers to support the sustainable growth of the business and has therefore proposed a dividend of five kobo per share for approval.

Ighodalo assured the shareholders that the board and management of the bank are committed to delivering value to them as they continue to drive the growth and profitability of the business towards creating a world-class financial institution of choice.