The shareholders of Sterling Bank Plc have approved the bank’s proposal to raise additional capital of N31.2bn.
Specifically, the shareholders at the bank’s Annual General Meeting in Lagos on Thursday approved the plans to raise N12bn through a right Issue and N19.2bn through private placement.
Group Managing Director, Sterling Bank, Mr. Yemi Adeola, said at the event that the fund was necessary to implement the medium to long term strategic objectives of the bank.
He also explained that the bank would continue to drive growth strategies domestically, focusing on building long-term relationships and creating sustainable value for customers.
He said that the 2012 financial performance emphasised the bank’s undoubted ability to execute key strategies, adding that “this was done as we deepened our reach in the industry, strengthened our technology infrastructure and continued to build sustainable and viable bank.”
Its results showed a 96 per cent increase in profit after tax to N2.72bn as at December 31, 2012 compared to N1.39bn recorded in the same period of 2011.
The bank grossed N19.8bn in the period under review, from N16.2bn recorded in the corresponding period of 2011, while net interest income rose by 3.5 per cent, from N6.27bn in 2011 to N6.49bn in 2012.
Accordingly, its earnings per share increased to 17 kobo in 2012, from nine kobo in 2011.
The result also showed that deposits increased by 13.1 per cent within the three months from N466.8bn recorded in December 2012 to N528.1bn in March 2013, while total assets grew by 11 per cent to N645.1bn, from N580.2bn recorded in December 2012.
Loans and advances also improved from N229.4bn in December 2012 to N247.6bn in March 2013, while shareholders’ funds stood at N49.3bn.
Adeola said the result reflected the enhanced capacity of the bank following its business combination with Equitorial Trust Bank.
He explained that the growth was driven by a marked improvement in core banking operations while the bank maintained a tight grip on asset quality, with non-performing loans dropping to its lowest rate of 3.8 per cent despite a 42 per cent growth in loans to N229.4bn.
He said, “Going into 2013, our goal is to reduce our cost of funds, enhance our brand presence in our target markets and improve operating efficiency.
“We have also revamped our retail strategy through a number of initiatives. Our physical infrastructure is being upgraded to capture a high-street retail look and feel; and restructured along the lines of hub and spoke delivery platforms.”
He stressed that ongoing initiatives would make the bank more efficient and profitable, reiterating the commitment of the board and management to continuously deliver competitive returns to shareholders.