The Nation Newspaper

Tag: Sterling Bank

  • Sterling Bank, six others get Moody’s National Scale Ratings

    Sterling Bank, six others get Moody’s National Scale Ratings

    Global rating agency Moody’s Investors Services has assigned national scale ratings (NSRs) to Sterling Bank Plc and six other Nigerian banks.

    This rating action, according to a statement from Moody’s, follows the publication of new national scale rating maps for Nigeria, Kenya and Morocco, which provide a measure of relative creditworthiness within a single country; and are derived from global scale ratings using country-specific maps.

    The agency assigned A1.ng/NG-1 national scale local currency deposit ratings to Sterling Bank. These ratings were underpinned by a standalone baseline credit assessment (BCA) of b3 and one notch of government support uplift, which results in a global scale long-term issuer and deposit rating of B2.

    Moody’s also assigned A2.ng/NG-1 national scale foreign currency deposit ratings to Sterling Bank.

    According to Moody’s, “the A1.ng rating is the second highest of three national scale ratings categories corresponding to the bank’s local currency deposit global scale ratings.

    Other banks that national scale local currency deposit ratings were assigned to included Zenith Bank Plc, Guaranty Trust Bank Plc (GTBank), Access Bank Plc, United Bank for Africa Plc (UBA), First Bank of Nigeria Limited and the Bank of Industry (BOI).

    “Sterling Bank’s national scale ratings capture the bank’s solid asset quality metrics (reported non-performing loans ratio of 2.8 per cent as at end-June 2016 versus 11.7 per cent for the banking system), provision coverage and solid deposit funding base”.

    These strengths are balanced against low foreign currency liquidity buffers, which underpin the lower national scale foreign currency deposit rating compared with its local currency deposit national scale rating; vulnerabilities in asset quality; and relatively modest capital levels.

    Commenting on the rating outcome, Executive Director, Finance and Strategy Mr. Abubakar Suleiman  said the ratings affirm the bank’s business model and resilience amidst challenging operating conditions. He further noted that the bank’s solid asset quality metrics reflected a robust risk management framework put in place by its management.

  • Sterling Bank improves core business, asset quality in Q3

    Sterling Bank improves core business, asset quality in Q3

    Sterling Bank Plc rode on the back of increasingly better operating and credit management efficiency to build up the quality and profitability of its core banking business in the third quarter.

    Key extracts of the interim report and accounts of Sterling Bank for the nine-month period ended September 30, 2016 released at the weekend at the Nigerian Stock Exchange (NSE) showed considerable improvements in key underlying fundamentals of the bank as it continues to grow its main focus of retail banking.

    The report showed that net interest margin, which measures the profitability of the core lending business, improved to 8.5 per cent in third quarter 2016 as against 7.9 per cent in comparable period of 2015. The proportion of non-performing loans (NPL) to gross loans and advances, which indicates assets quality and the efficiency of the credit risk management, also improved significantly from 4.8 per cent December 2015 to 2.5 per cent in third quarter 2016. This brings Sterling Bank well ahead of the 5.0 per cent industry thresholds for NPL set by the Central Bank of Nigeria (CBN). The bank’s cost of funds also improved to 5.3 per cent in third quarter 2016 compared with 6.2 per cent in corresponding period of 2015.

    Managing director, Sterling Bank Plc, Mr. Yemi Adeola said the improvements in the underlying fundamentals in the third quarter in spite of the depressing effect of the tough macroeconomic conditions on the overall performance of the sector, underlined the resoluteness of the bank in building a sustainable business anchored on effective risk management and a robust retail business.

    According to him, a 37.7 per cent growth in net interest income was largely due to a 12 per cent reduction in interest expense, which underpinned the 60 basis points increase in net interest margin.

    “Sterling Bank has grown its active customer base by over 40 per cent year-to-date with improved penetration across all digital channels. The non-interest banking business has also witnessed significant growth in deposits and profitability by 87 per cent and 415 per cent respectively. This gives fillip to our resolve to diversify our business significantly over the coming years,” Adeola said.

    He outlined that the bank would continue to prioritise operating efficiency and aggressively drive retail funding, noting that these priorities will guide bank’s business in the final quarter of the year and serve as the fulcrum for 2017. He noted that the tough operating environment characterised by foreign exchange supply shortages, rising inflation, negative economic growth and generally recessionary environment has sustained downward pressure on core earnings in the industry.

    “Although macroeconomic conditions could witness some modest improvements, the operating environment would continue to be challenging and business confidence somewhat subdued. Nonetheless, Sterling Bank remains committed to building a sustainable business anchored on efficiency,” Adeola assured.

    Further analysis of the financial statement showed that net interest income rose by 37.6 per cent from N30.2 billion in third quarter 2015 to N41.5 billion in third quarter 2016. Non-interest income however reduced by 47.6 per cent to N10.8 billion as against N20.5 billion mainly because of 34.2 per cent decline in fees and commission. This moderated the gross earnings to N79.65 billion in third quarter 2016 as against N81.81 billion in comparable period of 2015. With curtailed increase of 5.0 per cent in total expenses in spite of a 17.9 per cent inflation rate year-on-year in September 2016, profits before and after tax stood at N6.07 billion and N5.54 billion respectively in third quarter 2016. Profits before and after tax were N8.30 billion and N7.55 billion respectively in third quarter 2015.

    The balance sheet of the bank emerged stronger during the period. Net loans and advances increased by 46.2 per cent to N495.3 billion in September 2016 as against N338.7 billion recorded at the beginning of this year. This was driven primarily by foreign exchange revaluation. Customer deposits also improved from N590.9 billion as at December 31, 2015 to N595.1 billion in September 2016. Total assets excluding contingent liabilities increased by 11.4 per cent to N890.3 billion as against N799.5 billion at the start of the year.

     

     

  • Sterling Bank, Afrigrants mark financial inclusion week

    As the world celebrates Financial Inclusion Week, Sterling Bank Plc and Afrigrants Resources Limited have come up with an initiative called ‘Market Women Quick Cash’.

    The initiative was designed to promote financial inclusion and empowerment especially among women micro entrepreneurs as well as facilitate a platform for them to build capacity for enhanced business growth.

    It would be recalled that the Market Women’s Quick Cash was officially launched in Kaduna last week with the goal of reaching one million women in three years working through diverse collaborations and partnerships. The initiative will also build the confidence of the women at the micro level and position them to access more financial services and mentorship.

    Ms. Ekiyor in an interview with reporters in Lagos noted that the initiative would empower women, promote gender-equity and improve household well-being; and further reduce the number of the un-banked in the country.

    Her words: “Women are the most financially excluded in Nigeria. The situation is worse for petty traders, small-holder farmers and micro entrepreneurs. Afrigrants Resources designed Market Women’s Quick Cash as an innovative solution that addresses the three main factors that contribute to women’s financial exclusion; collateral requirements; financial illiteracy and distance of financial services. Therefore, the Market Women’s Quick Cash product aims to bridge the financing gap that currently exists in the micro-enterprise sector in Nigeria, particularly for women’s enterprises that predominantly operate in the informal sector, she explained.

    She added that the solution brings banking to women where they conduct business, socialize, and network. It provides access to financing to women through a ‘single digit interest rate, zero collateral’ informal financing scheme that operates on limited bureaucracy with user-friendly ‘quick’ application processes. A revolving fund has been created to enable more women participate in the scheme.

  • Sterling Bank launches indirect bid to raise N8b capital

    •Lender eyes N65b in serial bond issuance

    Sterling Bank Plc has secured regulatory approval to raise about N8 billion in new capital as a first step in a large new capital issuance through which the bank seeks to raise a total of N65 billion.

    A regulatory document obtained by The Nation yesterday showed that Sterling Bank would be raising the new capital through an indirect special purpose vehicle known as Sterling Investment Management SPV Plc.

    According to the document, Sterling Investment Management SPV will be offering for subscription N7.965 billion in its series 1: seven-year 16.50 per cent fixed rate unsecured bonds due 2023. The maiden issuance is part of the bank’s N65 billion debt issuance programme.

    Sources in the know confirmed that the SPV is a tier-11 capital raising programme for Sterling Bank, describing it as a creative way to shield the bank from unnecessary regulatory and market issues while having access to the much-needed capital.

    The document indicated that the Nigerian Stock Exchange (NSE) has already approved the debt issuance, paving the way for the bank to conclude the pre-offer opening processes.

    Global Credit Ratings (GCR) has accorded a final, public national scale long term rating of BBB (NG) to the N7.97 billion bond; with the outlook accorded as stable. The rating is valid until 31 August 2017.

    Managing Director, Sterling Bank Plc, Yemi Adeola, recently said the bank was concluding arrangements to raise tier 2 capital in the second half of this year as improved assets quality and lower cost of fund steadied the performance of the bank in the first half of this year.

    He said the bank would in the second half of the year continue to prioritise operating efficiency and ensure moderate loan growth; while continuing to diversify funding sources as our retail banking strategy gains traction.

    He added that the bank also remained committed to its plan to conclude its N35 billion tier 2 capital raising.

    “As we look to the second half of the year, we remain committed to our plan to conclude our N35 billion tier 2 capital raise, prioritise operating efficiency and ensure moderate loan growth; while continuing to diversify funding sources as our retail banking strategy gains traction. Although, some of the macroeconomic challenges witnessed during the first half of the year will persist, we expect improvements in the Nigerian economy, driven by the implementation of the budget and other fiscal palliatives introduced by the Federal Government,” Adeola assured.

    As the Nigerian economy and the banking industry struggled with fiscal and monetary challenges that saw inflation and foreign exchange at their worst in many years, Adeola pointed out that the bank has remained irrepressible as demonstrated by the strength of its core business.

    According to him, the bank prioritised improvement in asset quality which was reflected by a 70 basis point decline in the non-performing loans and a 100 basis point reduction in cost of risk. Cost of funds also declined by 120 basis points to 4.7%. This was in spite of the foreign exchange liberalisation policy, the attendant liquidity squeeze and the rising inflation rate which peaked at 16.5 per cent in June 2016.

    He pointed out that the bank showed deeper pliability through the re-affirmation of its investment grade ratings at a time when corporate and sovereign ratings were under downward ratings pressure, adding that Sterling Bank has successfully migrated to a world-class CORE banking application, which will enable it to better manage a significant uptick in customer base and ensure the required flexibility to deliver unique services across business segments.

    He said the bank has also taken steps to improve staff productivity by introducing a flexible work environment to achieve its goal of building a great workplace and reduce operating expenses.

    NSE highlights importance of market data as X-Gen clocks 3

    The Nigerian Stock Exchange (NSE) has underscored the importance efficient and seamless delivery of market data to users in the process of investment decision as the Exchange celebrates the third anniversary of its cutting-edge trading engine, X-Gen.

    The NSE will next week organise its inaugural market data workshop to increase awareness on the critical role of market data in making sound investment decisions on both the buy and sell sides.

    The workshop themed: Understanding Market Data for Savvy Investing and Wealth Creation, coincides with the third anniversary of X-GEN, a next generation trading platform that has contributed to increasing market access, order flow and market transparency.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, noted that the delivery of market data to users is highly time-sensitive and requires specialised technologies designed to handle the collection and throughput of the massive data streams.

    “At the NSE, this effort is underpinned by our ‘next generation’ trading engine, X-Gen, which was built in collaboration with NASDAQ in 2013. X-Gen is not only built to trade a wide range of securities, it is extendable to multiple interfaces for the consumption of market data. It is this system that we rely on daily to deliver approximately 2.5GB worth of data to our various domestic and global market data consumers,” Onyema said.

    Commenting on the event, executive director, market operations and technology, Nigerian Stock Exchange (NSE), Mr. Ade Bajomo, said the conference will bring to the fore the critical application of market data in making sound investment decisions.

    He added that the event would also highlight the various data products available in the Nigerian marketplace thereby allowing investors to maximise their wealth creation opportunities.

    Head, market services department, Nigerian Stock Exchange (NSE), Mr. Ade Ewuosho, assured that the Exchange in collaboration with technology driven institutions and stakeholders in Nigeria will continue to provide business solutions that will thrive on market data, technology and innovation, to meet the diverse business needs.

    “We are hopeful that attendees will gain valuable insight that will help them realise the significance of data to decision making,” Ewuosho said.

    Some of the confirmed speakers for the event include Dr. Yemi Kale – Statistician General of the National Bureau of Statistics of Nigeria, Uwa Agbonile – Managing Director, Infoware Limited, Obiora Anyichie – Global Trybe Solutions, Natasha Punwani – Business Manager, Bloomberg; and Kemi Oluwashina – Director, ARM Securities.

    This event is sponsored by Bloomberg, Infoware, Global Trybe Solutions, ARM, Samsung, GTI, Wapic Insurance, Zanibal and Ntel.

  • Why we’re supporting NESG, by Sterling Bank

    Sterling Bank Plc has renewed its commitment to the promotion of Made-In-Nigeria goods and services as it supports the 2016 edition of the Nigerian Economic Summit (NES#22). The summit themed: ‘Made in Nigeria’,  holds from October 10 to 12, 2016 at the Transcorp Hilton Hotel, Abuja.

    Sterling Bank in a statement  at the weekend assured that it would continue to invest in and partner  like minds to promote the production and consumption of locally made goods and services, adding that its sponsorship is also hinged on the fact that the event would provide a platform for public-private dialogue (PPD) to fashion out the right economic agenda to take the nation out of the current economic downturn.

    It would be recalled that the Bank has remained consistent in the  promotion of Made-in-Nigeria products. Recently, Sterling Bank sponsored the Made-In-Nigeria week held in Lagos. The Bank is also in partnership with Innoson Motors Limited to finance the purchase of locally made vehicles produced by the company. In addition, Sterling Bank financed Labana Rice,  one of the largest rice mill in the country and also bought large quantity for staff and stakeholders in the Bank. Driving this initiative down to its members of staff, the Bank has instituted a ‘Made – in- Nigeria Week’ when members of staff come to the office dressed in locally made attires.

    Held annually, NES attracts over a thousand delegates including chief executives, opinion leaders and policy level managers from the public and private sectors to interact and share thoughts on issues of national importance.

    The bank in the statement explained that its strategic support for the promotion was informed by the current economic headwinds and exchange rate volatility fueled by the fall in oil price, which brought to the fore the need to diversify the nation’s revenue base and support the manufacturing sector through the patronage and use of locally made products and services.

  • Sterling Bank holds MSME Academy workshop

    Sterling Bank holds MSME Academy workshop

    Small business owners in Ibadan, on Wednesday and yesterday, convened  at Mouve 21 Event Centre, Ibadan for the first phase of a four- day Micro, Small, and Medium Enterprises (MSME) Workshop, organised by Sterling Bank Plc. The event continues today. The second phase would hold at the same venue from September 28 to 29, 2016.

    The bank had organised similar workshops in Lagos, Port Harcourt, Kaduna and Onitsha with over 300 MSME members trained. Similar workshop was also organised last month for members of the Lagos Chapter of the Nigerian Association of Small & Medium Enterprises (NASME).

    The bank in a statement last Friday explained that the workshop would provide participants with the opportunity to fully appreciate the concept of entrepreneurship. “Participants will be well positioned to enhance their managerial capacity and well equipped to navigate the challenging operating environment,” the Bank explained.

    The bank’s Group Head, Strategy & Communications, Shina Atilola, had, in previous communication on the workshop, explained that the Bank would be anchoring series of workshops for MSME operators in various states nationwide.

    According to him, the bank came up with the workshop to support MSMEs and enable them grow to become established institutions, given the potential role they play in economic development.

    His words: “SMEs remain the pillar of any growing economy and the operators in the sector must be well positioned and equipped for accelerated growth and positive impact on the economy.”

    A cross-section of participants, who attended previous events, expressed confidence that the training received at the workshop would go a long way in repositioning SMEs, which serves as the bedrock of the economy globally.

  • Ajimobi praises Sterling Bank’s support for environment

    Oyo State governor, Senator Abiola Ajimobi, has praised Sterling Bank Plc for partnering the state to make it one of the most environmental friendly in the country.

    The Governor, who made the commendation while receiving reflective coveralls donated by the bank to be used by staff members of Oyo State Waste Management Authority in Ibadan, at the weekend, noted that the uniforms would protect the highway managers against occupational hazards, which they face in the discharge of their duties on daily basis.

    With the donation of the uniforms, the Governor, who was represented by his Deputy, Chief Moses Alake Adeyemo, noted that Sterling Bank had demonstrated its commitment to environmental sustainability.

    His words: “These coveralls without any doubt will make the Highway Managers visible from afar and prevent incidents of motorists running into them. It will provide safety against occupational hazards, give them a sense of dignity and elevate their status as they see themselves as very relevant to the society through the service they provide.”

    While reaffirming his administration’s commitment to maintaining good environmental sanitation, the Governor said his administration would continue to take proactive steps towards waste management and sanitation in the state.

    The bank’s Managing Director, Yemi Adeola, said the presentation of coveralls was in line with the bank’s strategic focus on the environment as one of its corporate’s social responsibility priorities. He added that the bank was already in partnership with other states to ensure environmental cleanliness nationwide.

    Adeola, who was represented by the bank’s Business Executive in the Southwest, Mrs. Temiwunmi Banjoko, said: “At Sterling Bank, environmental cleanliness is one of the cardinal points of our Corporate Social Responsibility and that informs the bank’s continued commitment of enormous resources towards ensuring that the environment where we live is habitable. As the bank embarks on this mission, we consider it of utmost importance to protect those whose job it is to manage and clean the environment.”

  • Governors laud Sterling Bank’s CSR initiative

    Governors laud Sterling Bank’s CSR initiative

    The Governors of Plateau, Bauchi and Gombe states, Simon Lalong, Mohammed Abdullahi Abubakar and Ibrahim Hassan Dankwambo have commended Sterling Bank Plc for its role in checkmating desertification experienced in some Northern parts of the country through its tree planting initiative.

    Desertification, according to them, has caused a lot of damage to the local economy as it has made farming impossible in affected areas leading to high cost of food items and poor standard of living for the people.

    According to a statement from the lender, the Governors made these remarks during the tree planting organised by the Bank in the three pilot states at the weekend.

    They said the initiative would sustain the environment and checkmate the rising challenges posed by desertification as well as generate the much needed awareness on desertification at local, national and global levels.

    The bank last week, commenced the pilot stage of the tree planting initiative in three states in Northern Nigeria. The initiative, according to the Bank  became imperative as one of the solutions to cushion the effects of desertification in the country, as Nigeria is faced with rapid desert encroachment affecting 15 northern states with various degree of impact.

    The Plateau State Governor, who was represented by the State’s Commissioner for Agriculture, Mrs. Lynda Shekinah Barau commended the Bank for coming up with the initiative, which according to her,  remains the most tested solution to stemming the tide of desertification and is in line with the United Nation’s Sustainable Developmental Goals for environmental preservation.

  • Sterling Bank woos schools, parents with juicy offers

    Sterling Bank’s Back-To-School Campaign may provide succor for many parents, guardian, teachers and proprietors of schools in Nigeria as they prepare for the new school year in September.

    The primary target for the campaign are the primary and secondary schools (administrators, owners and teachers) while the secondary audience are all primary and secondary school-students and their parents.

    Areas covered under the campaign include school financing, asset finance, textbook and educational materials finance for schools; school fees finance for parents; coding and robotics Summer Boot Camp for children, and household equipment finance and training for teachers, among others.

    The Bank’s Group Head, Strategy & Finance, Mr. Shina Atilola in a statement, explained that the school fees financing solution was introduced to provide parents with instant financing for school fees and allow them put their kids in school while awaiting salaries and other receivables.

    He explained that under the Bank’s Asset finance scheme, existing and new account holders will qualify for short-term financing against receivables while “Sterling Bank can finance acquisition of Buses, ICT Infrastructure, Interactive Boards and other items the school may wish to purchase in the Back-to-School season under the asset finance scheme”.

    The chief strategist added that schools patronizing the bank can access finance for a 90-day tenor at good rates.

    “This would be an incentive to school owners as surveys have shown that a large number of schools have challenges with payment of salaries and for renovation projects when school fees are not fully received.  Existing and prospective schools can also enjoy free deployment of our Eduportal and Payment Gateway at no cost to the school. The solution, he noted, provides a platform to integrate the payment of school fees, levies and any other school-related payments. The platform also  aids record-keeping, and make for seamless day-to-day management of operations in schools.

    While the Bank offers schools a quick financing solution to purchase textbooks and learning materials from major publishers and bookshops like Learn Africa Plc, Doroena Books and other designated outlets for the school year, Atilola explained that schools that open salary accounts for their teachers this season will have their teachers qualify automatically for the bank’s Personal Financial Management and other training programmes (for both local and foreign courses).

    Under the Household Equipment Finance, he explained that teachers with salary accounts would qualify for discounted acquisition of household items with flexible payment plans.

  • Sterling Bank launches Diaspora Services

    Sterling Bank Plc over the weekend announced the launch of the Sterling Diaspora Services for Nigerians based outside the shores of the country.

    The bank’s Group Head, Strategy & Communication, Shina Atilola, in a statement  said Nigerians living abroad with local and direct ties in Nigeria would be encouraged to embrace the services.

    “We will also ensure that businesses owned by Nigerians and Associations abroad make use of the services” the bank’s chief strategist added.

    He disclosed that the Bank was in discussions with various Nigerian communities abroad for business collaboration in the area of customer acquisition, management and retention.

    He explained further: “It will be recalled that the World Bank recently put the estimate of Nigerians in the Diaspora at 20 million who remitted an estimated $21 billion in 2015. This provides a platform for proactive financial institutions like Sterling Bank to tap into the business opportunity available outside the shores of the country. This will give millions of Nigerians abroad access to the services through online and electronic channels.”

    Sterling Bank has continued to demonstrate its unwavering commitment and passion for retail banking over the years through its continued investments in capacity building, product development for superior customer experience, among others.