Lagos - Shareholders of Sterling Bank Plc have approved the bank’s plans to
raise new capital through a private placement.
The private placement when concluded will shore up Sterling Bank’s share
capital to N16 billion from the existing N12 billion.
The shareholders gave the approval at the bank's 52nd Annual General Meeting
(AGM) held in Lagos.
According to the shareholders, the private placement should be raised by the
creation of an additional eight billion ordinary shares of 50k each.
The shareholders also approved the payment of 25k dividend per share
declared by the bank.
Speaking at the meeting, Dr Farouk Umar, President, Association for the
Advancement of the Rights of Nigerian Shareholders, said that the shareholders
would support the capital raising exercise.
Umar said that the bank needed to increase its share capital to finance
value creation projects.
He also said that enhanced shareholders' funds would increase the bank's
Sunny Nwosu, National Coordinator, Independent Shareholders Association of
Nigeria (ISAN), said that the capital exercise would improve the bank's return
Nwosu said that the bank would not be able to finance big business with a
small capital base.
"If our capital base is not robust, we will not be able to finance big
"ISAN support for the bank’s robust financial muscle stems also from the
need for Sterling Bank to be repositioned toward benefiting from the
anticipated business of government’s transformation agenda,” Nwosu said.
Yemi Adeola, the bank's Managing Director, said that they would continue to
emphasise sustainable growth across all market segments by deepening social and
Adeola said that the bank would increase investments to grow its retail
funding base and service delivery across all channels.
He said that the bank would deploy 5 000 POS and 700 Automated Teller
Machines in 2014, to enhance service delivery.
The bank posted gross earnings of N91.63 billion for the financial year
ended December 31, 2013 against N68.86 billion achieved in 2012.
Its profit after tax stood at N8.28 billion, compared with N6.95 billion
posted in the comparative period of 2012, an increase of 19 percent.
For the latest on national news, politics, sport, entertainment and more follow us on Twitter and like our Facebook page.