The Nation Newspaper

Tag: Sterling Bank

  • Sterling Bank, Opportunity Network partner on trade

    Sterling Bank Plc has partnered with Opportunity Network, a digital deal matchmaking platform for vetted Chief Executive Officers and Investors to share and connect to reliable trade and investment deals globally

    It is a private invitation-only network of business owners, CEOs and high network individuals carefully selected and vetted by a financial institution or law firm who is its trusted partner.

    Speaking during the launch of the network in Lagos, Managing Director, Sterling Bank Plc, Abubakar Suleiman, said the bank’s greatest asset is trust, and that the world is becoming flat and trade becoming global.

    He said: “With this partnership, our customers will benefit because through the network, more cross boarder transactions will be done,” he said.

    The bank chief said that Sterling Bank is committed to ensuring that businesses grow and connect with local and international partners.

    He said its customers are known to the bank and that knowledge of the customers will be relied on by international partners to carry out transactions with Nigerian firms.

    Also speaking, Managing Director Nigeria, Opportunity Network, Adriana de la Cruz Duffo, said the platform aggregates high-quality commercial, mergers and acquisitions, and capital related opportunities from around the world into one single, online location.

    She said the business deals are actionable and proprietary and can be posted and searched by deal type, industry, geography and deal size.

    She said 75 per cent of the opportunities posted are either negotiating or already closed the deal while on average, members receive 11 connections per opportunity.

    “IT Group was looking to invest in small innovative Tech companies and found the connection to a consultancy firm that helped evaluate multiple investment opportunities out of their network.”

  • Sterling Bank unveils skills champions

    Sterling Bank Plc has unveiled the champions of the recently concluded iCreate Skills Festival and about 10 of them would be representing Nigeria in Russia in 2019.

    The winners are Otareh Alvin who won in the cooking category, Nejo Tolulope (graphics), Silas Adedoyin (web design), Patrick Obafemi (app development), Barnabas Kudi (robotics), Afolabi Caleb Kayode (art), Ms. Malissa Onojo (tailoring), Yusuf Abdullahi (barbing), Kingsley Ihejirika (hair dressing), Ms. Faiza Usman Adamu (make up), Joshua Olalekan (carpentry), Oladoja Peter (tilling), Kumshuan Talgang (plumbing) and Prince Isitua (bricklaying).

    The bank had partnered with iCreate Skill Fest 2018 to host the premier youth empowerment festival in Abuja with the aim of transforming skill acquisition across the continent.

    Speaking at a press conference in Lagos, Chief Executive Officer of Sterling Bank, Suleiman Abubakar said following the huge success of the premier edition the bank has decided to sponsor the second edition, adding that they will also extend credit facilities to the winners of the first edition and that such loans will be fast track within two weeks.

    He said, “Bright Jaja, the CEO and Founder of iCreate Skills Festival gives him hope for the future of this country,” adding that, “there is an on-going conversation about which generation of Nigerians will salvage this country. I have started to worry if my generation will be able to do it, which is debatable, it may or may not. But it is clear to me that your generation will do it.”

    “I have no doubt in my mind and I only need to meet one young man (Bright) and the belief he has in the future of the country and the energy he brought to it as well as the sacrifices he has made. I have watched the project over the last couple of months and I have started to see some of the winners come out and every single one of you have convinced me completely that generation that will salvage Nigeria is here,” Abubakar said.

    The CEO who also commended the winners, remarked that, “I don’t think we prepared you for this and I don’t think we gave you a ladder to climb up.”

    He noted that whether it is the work some of the youths had done in entertainment or the work that they are doing now in the technology space or the work they had done in their various areas of specialization, not just earning a living but actually bringing in respect to the various skills they have because at the end of the day, it is lack of respect that make certain people to avoid certain skills and at the end of the day, the country is stuck with it.

     

     

     

     

  • Sterling Bank, Jaiz Bank, others make NSE’s index stocks

    The Nigerian Stock Exchange (NSE) has included Sterling Bank and Jaiz Bank as part of stocks that will form benchmark stocks for stocks’ groups and sectors.

    The NSE stated that it has reviewed its NSE-30 Index and eight sectoral indices, including NSE Consumer Goods, NSE Banking, NSE Insurance, NSE Industrial, NSE Oil & Gas, NSE Pension, NSE Lotus Islamic and NSE Corporate Governance Indices.

    The composition of these indices took effect January 1, 2019, after the completion of the year-end review and index rebalancing exercise which saw the entry of some major companies and the exit of others from the various indices.

    According to NSE, Sterling Bank has now been included in the NSE 30 Index, the benchmark index that tracks the 30 largest companies on the Exchange. Jaiz Bank has now been included in the NSE Banking Index, which tracks the most influential banking sector. The NSE had removed Beta Glass and Diamond Bank from the NSE 30 Index and NSE Banking Index respectively. Jaiz Bank also replaced Nigerian Aviation Handling Company (Nahco) in the NSE Lotus Islamic Index, which tracks Sharia’a compliant stocks.

    Also, the NSE Insurance Index now included Consolidated Hallmark Insurance Plc, Sovereign Trust Insurance Plc and Regency Assurance Plc while Continental Reinsurance Plc, Staco Insurance Plc and Standard Alliance Insurance Plc have been removed. In the NSE Oil and Gas Index, which tracks the oil and gas sector, MRS Oil Nigeria replaced Eterna as one of the benchmark stocks.

    The NSE Pension Index now included Cement Company of Northern Nigeria (CCNN) Plc, Beta Glass Co. Plc and Julius Berger Plc while Diamond Bank Plc, Continental Reinsurance Plc and Ecobank International Incorporated were removed.

    The indices, which were developed using the market capitalization methodology, are usually rebalanced on a biannual basis, the first business day in January and in July. The stocks are selected based on market capitalization and liquidity. The liquidity is based on the number of days the stock is traded during the preceding two quarters.

    To be included in the index, the stock must have traded for at least 70 percent of the number of trading days in the preceding two quarters.

    The NSE began publishing the NSE 30 Index in February 2009 with index values available from January 1, 2007.

    On July 1, 2008, The NSE developed four sectoral indices and one index in 2013, with a base value of 1,000 points, designed to provide investable benchmarks to capture the performance of specific sectors. The Insurance and Consumer Goods sector index, comprises the 15 most capitalized and liquid companies; Banking and Industrial Goods sector index, comprised of 10 most capitalized and liquid companies, while the Oil & Gas sector index, is composed of the seven most capitalized and liquid companies.

  • Sterling Bank promotes food festival

    Sterling Bank has promised to light up Lagos this festive season as it brings together the best of African and international cuisine and mixology at the critically acclaimed #EatDrinkFestival. The new two-day event format has been scheduled for December 26th & 27th at the Lekki Coliseum from 12pm to 8pm daily. Presented in partnership with Eat.Drink.Lagos, the festival features live demonstrations from top chefs and mixologists as well as pop up shops from a selection of the city’s finest food vendors. The event which started out in 2014 to showcase local culinary enthusiasts has become the favourite curation of food and drinks in West Africa.  Chief Marketing Officer of Sterling Bank, Ibidapo Martins, said the goal of the festival is to create an unmatched culinary experience of Lagos’ best foods and drink brands, remarking that the bank’s decision to deliver the event was to ensure that residents in Lagos and its environs enjoyed the best flavours the city had to offer during the festive season. Folayemi Agusto, co-founder, Eat.Drink.Lagos said the festival was created as a platform for local food vendors to connect with their customers without the limitation of their physical locations.

    “There were a number of food vendors from which I ordered lunch to my office daily, but many people didn’t know about them. The idea we had was to give these vendors a platform to meet their customers in person without having to own a storefront – because the cost of one is prohibitive for many of these small businesses.

  • Sterling Bank, Peugot Automobile partner

    Sterling Bank Plc has partnered with Peugot Automobile Nigeria to deliver 50 made-to-order vehicles for official use across the bank’s locations nationwide.

    The bank teamed up with the Kaduna-based car maker to customise the vehicles based on their deep understanding of the Nigerian terrain as well as required mode of usage.

    “Following our strategic drive as a bank to focus on impacting the critical sectors of the Nigerian economy, we had to evaluate every aspect of our business transactions to ensure we were doing same to support the growth of the economy. By acquiring our company pool cars from a local manufacturer, we ensured that not only will the funds circulate within Nigeria, the impact of the partnership will equally boost our local manufacturing sector to provide jobs and improve the skills of people participating in that sector, said Raheem Owodeyi, Chief Operating Officer of Sterling Bank Plc.

    “We see this partnership as a game changer and one that will influence the perception people have about locally manufactured vehicles as the procured vehicles will be deployed in all our branches nationwide, said Adebomi Adewale, Head, General Internal Services at Sterling Bank.

    “It is also the first time a bank in Nigeria will look beyond the short term gains ofpatronizing affordable foreign based manufacturers to the impact of its dealings on the wider economy”.

  • AFEX, Sterling Bank create blockchain platform for farmers

    AFEX Commodities Exchange Limited (AFEX), Nigeria’s first licensed private commodities alongside Binkabi, a builder of decentralised trading commodity network and exchange  and Sterling Bank  has  announced that the world’s first fully digital, blockchain based commodity trading and financing platform has been created on account of their partnership.

    The partnership, initiated by AFEX is hinged on the dearth lack of adequate agricultural finance has occasioned in the sector and the critical roles AFEX’s Warehouse Receipts System (e-WRS), Binkabi’s Blockchain Technology and Sterling Bank’s access to credit play in leading the creation of a reliable source for financing in agriculture for Nigeria.

    At the present time, the status quo in the sector is such that most smallholders are restricted to farming practices that result in low levels of productivity. The traditional alternative to money lending is also costly as loans are charged at very high rates, contributing to the increased challenge of indebtedness and poverty.

    It is on this backdrop that the partnership will leverage blockchain technology to unlock financing through the AFEX warehouse receipt system which would lead to the creation of new opportunities and relationships for players in the commodities markets.

     

  • Sterling Bank launches world first digital commodity market

    Sterling Bank Plc yesterday set Nigeria on the global record with the launch of the world’s first fully digital, end-to-end blockchain-based commodity trading and financing platform.

    Developed in partnership with Binkabi and AFEX Commodities Exchange, the platform is expected to decentralise agricultural commodity trading in Nigeria and all emerging economies, helping to reduce intermediation in trade while distributing profit more widely across the value chain.

    Speaking at a press briefing yesterday in Lagos, Chief Executive Officer, Sterling Bank Plc, Abubakar Suleiman, said Nigeria loses about half of its agricultural products yearly to post harvest processes noting that by introducing and establishing a viable and efficient agricultural commodities exchange platform, the bank is taking the lead to tackle agricultural challenges.

    He pointed out that cereal grains such as rice, maize and soya beans which are among the basic staple foods across Nigeria suffer the most loss among all agricultural commodities but the application of some of the latest scientific storage technologies and provision of liquidity can help to reduce this problem and increase margins for the farmers.

    “In addition, this is a medium to long-term value investment for us at Sterling Bank. The productivity gain from the partnership is that the agric sector will be de-risked and our farmers will become more viable for commercial lending. It will also create a pathway for more banks to lend to farmers without intervention funds making it possible for the government to free up funds allocated to subsidizing agric sector to other industries,” Suleiman said.

    Country Manager, Nigeria, AFEX Commodities, Ayo Balogun, said the commodity exchange was designed with farmers in mind, to help them mitigate risks and ensure payments are made through reliable financial service providers.

    According to him, a typical scenario at the exchange involves the use of warehouses across the country with modern facilities where farmers and traders can take their produce to minimise wastages. Farmers can deposit their agro commodities in certified warehouses and are issued receipts, which are recognised by the bank.

    “We are excited that a reputable commercial bank like Sterling Bank has come on board to enable farmers reduce exploitation by middlemen. As a result of this partnership, farmers can use their receipt as collateral to procure loans or other financial services. They can also sell the receipt on the commodity exchange market without transferring their agro commodities from the warehouse,” Balogun said.

    Founder and Chief Executive Officer, Binkabi, Quan Le, said the platform is expected to ensure that the commodity network becomes fairer and more profitable through collaborative efforts which leverage blockchain technology.

    “We understand that if financial markets can fail ordinary people in the developed world then the agricultural markets are failing ordinary farmers in the developing world. The only difference is that these farmers don’t have a voice – it is a silent crisis. This has motivated us to work with like-minds to develop a marketplace of end-buyers and end-sellers of commodities to help reduce intermediation in trade, distributing profit more widely in the value chain,” Le said.

    He noted that Binkabi offers an end-to-end solution for the entire trading process from sourcing to settlement and creating new opportunities.

    “We are transforming agro commodity supply chain in emerging markets for the benefit of farmers, SMEs and other actors. We understand that while banks want to lend to SMEs, the cost of acquiring and serving this sector as a result of additional human resource required to perform various checks on smaller transactions, insufficient credit information of borrowers, lack of measurable collaterals, and inherent higher credit risk associated with SMEs. Binkabi streamlines commodity trading process and allow banks to lend against warehouse receipts and contracts,” Le said.

     

  • MTN Partners Sterling Bank on Smartphone Device Financing Scheme

    In a bid to provide more Nigerians with access to the benefits of a digital world, MTN Nigeria in partnership with Sterling Bank and PayJoy has launched a Device Financing Scheme (DFS) to provide opportunity to purchase a smartphone of choice and pay over a period of six months.

    Speaking at the launch, Sales & Distribution Executive, MTN Nigeria, Adekunle Adebiyi said, “MTN wants every customer to benefit from the modern, connected life and it is through partnerships like this that we will see the kind of change that we want to see.”

    Under the DFS, the smartphones ranging from N25, 000–N400, 000 can be purchased by any customer at its current purchase price plus a 20% interest with the Device Financing Scheme. The pilot scheme will start with Samsung smartphones but will be expanded to include other Original Equipment Manufacturers, OEMs.

    The Device Financing Scheme aims to drive the adoption and uptake of smart devices through the provision of affordable credit facilities to eligible customers. The maximum loan tenure under the scheme is 6 months with pocket-friendly monthly installments, and is open to all customers who meet their credit requirements.

    The loan for the smartphone purchase will be disbursed using Sterling Bank’s Spectra platform, with the Samsung devices secured by PayJoy’s security lock technology and insured for theft, job loss and damage.

    According to Shina Atilola, Group Head, Strategy and New Business at Sterling Bank, “Paying upfront for everything you need can be limiting. However, the launch of DFS will provide customers with an affordable, convenient way to fulfil an important goal – living a better, smarter and more digitally connected life.”

  • Sterling Bank assures on sustained growth

    •Net profit rises by 39% in Q3

    Chief Executive Officer, Sterling Bank Plc, Mr. Abubakar Suleiman has assured stakeholders that the commercial bank will sustain its positive growth trajectory and deliver better returns to investors.

    Speaking against the background of strong growths in the third quarter results of the bank, Suleiman said the bank has been able to sustain its steady growth due to focused implementation of its strategic intent of exceeding customers’ expectations.

    Sterling Bank sustained an impressive performance in the third quarter as strong top-line growth and efficient credit risks and cost management led to 39 per cent growth in net profit during the nine-month period.

    Key extracts for the nine-month period ended September 30, 2018 showed that Sterling Bank grew gross earnings by 21 per cent and profit after tax by 39 per cent. All major performance indices recorded double-digit growth, bucking the generally low trend in the banking sector.

    According to him, the robust growth of 31.2 per cent in non-interest income was driven by a growth in trading and transaction banking revenues, as the bank continues to prioritize efficiency of its digital banking platforms to support its retail drive.

    “Our strategic intent to be more customer-focused has continued to yield results; one of such recorded in the last quarter is the increase in the volume of transactions processed through our various electronic platforms since the start of the year. We achieved over one million monthly NIBBS Instant Payment transactions as at July 2018, a 73 per cent increase from the start of the year and expect to see continuing traction in this regard,” Suleiman said.

    Gross earnings rose by 21.1 per cent to N114.6 billion in third quarter 2018 compared with N94.6 billion recorded in comparable period of 2017. The top-line performance was driven by growths in both interest and non-interest incomes. Non-interest income rose by 31.2 per cent from N16 billion to N21 billion. Net interest income increased by 7.8 per cent from N36.9 billion to N39.8 billion. Net operating income thus improved by 26.3 per cent to N57.2 billion in third quarter 2018 as against N45.3 billion in third quarter 2017.

    The bank sustained steady growth in profitability as profit before tax grew by 29.5 per cent N8.5 billion as against N6.5 billion in corresponding period of 2017. After taxes, net profit rose by 39 per cent from N5.9 billion to N8.2 billion. Earnings per share thus improved from 21 kobo to 28 kobo.

    Underlying ratios also showed improvement in the intrinsic value of the bank. Pre-tax return on average equity improved from 9.6 per cent in third quarter 2017 to 10.8 per cent in third quarter 2018. Post-tax return on average equity also increased from 8.6 per cent to 10.4 per cent. Return on average assets was steady at 1.0 per cent while cost of risk improved from 1.8 per cent to 0.8 per cent.

    The balance sheet spread also showed increasing acceptance of the bank’s brand and continuing supports of the bank to the growth of the national economy. Customer deposits increased to N723.2 billion by September 2018 from N685.0 billion in December 2017. The bank’s net loans and advances increased by 10.7 per cent to N662.0 billion from N598.0 billion in December 2017. Total assets improved to N1.08 trillion as against N1.07 trillion recorded at the beginning of the year while shareholders’ funds increased from N102.9 billion in December 2017 to N106.2 billion in September 2018.

    The bank’s Liquidity Ratio (LR) improved from 30.5 per cent in December 2017 to 34.4 per cent in September 2018 while Capital Adequacy Ratio (CAR) stood at 11.4 per cent. Non-Performing Loan Ratio (NPLR) improved considerably from 6.2 per cent to 5.4 per cent.

    Suleiman pointed out that the bank’s Series 2 Notes issuance of N19.7 billion under its N39 billion debt issuance program was oversubscribed, adding that the net proceeds of the issuance would be recognized as Tier II capital after the regulatory approval.

    He said the buffer provided by the additional capital would give room for business expansion across the bank’s focus growth areas including health, education, agriculture, renewable energy and transportation sectors.

    “Going into the final quarter of the year, we aim to complete the ongoing implementation of a number of digital-led initiatives in line with our digitization drive. This is expected to further intensify the bank’s retail drive,” Suleiman assured.

     

     

  • Sterling Bank grows net profit by 39% in Q3

    Sterling Bank Plc sustained an impressive performance in the third quarter as strong top-line growth and efficient credit risks and cost management led to 39 per cent growth in net profit during the nine-month period.

    Key extracts for the nine-month period ended September 30, 2018 released yesterday at the Nigerian Stock Exchange (NSE) showed that Sterling Bank grew gross earnings by 21 per cent and profit after tax by 39 per cent. All major performance indices recorded double-digit growth, bucking the generally low trend in the banking sector.

    Gross earnings rose by 21.1 per cent to N114.6 billion in third quarter 2018 compared with N94.6 billion recorded in comparable period of 2017. The top-line performance was driven by growths in both interest and non-interest incomes. Non-interest income rose by 31.2 per cent from N16 billion to N21 billion. Net interest income increased by 7.8 per cent from N36.9 billion to N39.8 billion. Net operating income thus improved by 26.3 per cent to N57.2 billion in third quarter 2018 as against N45.3 billion in third quarter 2017.

    The bank sustained steady growth in profitability as profit before tax grew by 29.5 per cent N8.5 billion as against N6.5 billion in corresponding period of 2017. After taxes, net profit rose by 39 per cent from N5.9 billion to N8.2 billion. Earnings per share thus improved from 21 kobo to 28 kobo.

    Underlying ratios also showed improvement in the intrinsic value of the bank. Pre-tax return on average equity improved from 9.6 per cent in third quarter 2017 to 10.8 per cent in third quarter 2018. Post-tax return on average equity also increased from 8.6 per cent to 10.4 per cent. Return on average assets was steady at 1.0 per cent while cost of risk improved from 1.8 per cent to 0.8 per cent.

    The balance sheet spread also showed increasing acceptance of the bank’s brand and continuing supports of the bank to the growth of the national economy. Customer deposits increased to N723.2 billion by September 2018 from N685.0 billion in December 2017. The bank’s net loans and advances increased by 10.7 per cent to N662.0 billion from N598.0 billion in December 2017. Total assets improved to N1.08 trillion as against N1.07 trillion recorded at the beginning of the year while shareholders’ funds increased from N102.9 billion in December 2017 to N106.2 billion in September 2018.

    The bank’s Liquidity Ratio (LR) improved from 30.5 per cent in December 2017 to 34.4 per cent in September 2018 while Capital Adequacy Ratio (CAR) stood at 11.4 per cent. Non-Performing Loan Ratio (NPLR) improved considerably from 6.2 per cent to 5.4 per cent.

    Chief Executive Officer, Sterling Bank Plc, Mr. Abubakar Suleiman said the bank has been able to sustain its steady growth due to focused implementation of its strategic intent of exceeding customers’ expectations.

    He noted that the robust growth of 31.2 per cent in non-interest income was driven by a growth in trading and transaction banking revenues, as the bank continues to prioritize efficiency of its digital banking platforms to support its retail drive.

    “Our strategic intent to be more customer-focused has continued to yield results; one of such recorded in the last quarter is the increase in the volume of transactions processed through our various electronic platforms since the start of the year. We achieved over one million monthly NIBBS Instant Payment transactions as at July 2018, a 73 per cent increase from the start of the year and expect to see continuing traction in this regard,” Suleiman said.

    He pointed out that the bank’s Series 2 Notes issuance of N19.7 billion under its N39 billion debt issuance program was oversubscribed, adding that the net proceeds of the issuance would be recognized as Tier II capital after the regulatory approval.

    He said the buffer provided by the additional capital would give room for business expansion across the bank’s focus growth areas including health, education, agriculture, renewable energy and transportation sectors.

    “Going into the final quarter of the year, we aim to complete the ongoing implementation of a number of digital-led initiatives in line with our digitization drive. This is expected to further intensify the bank’s retail drive,” Suleiman assured.