Shareholders of Sterling Bank Plc have endorsed the bank’s plans to raise tier 1 capital of N20billion through private placement and additional tier 2 capital of N31.2bn.
Specifically, the shareholders at the bank’s Extra General Meeting in Lagos said the money will allow the bank to align its long-term strategic objectives in order to enhance operational efficiency to maximise value for shareholders.
Addressing the shareholders at the meeting, Yemi Adeola, group managing director, Sterling Bank, said that the tier 2 capital would be raised in the first quarter of 2015, explained that the bank would continue to drive growth strategies domestically, and focusing on building long-term relationships and creating sustainable value for customers.
“We did right issue of 12bn and now private placement of 20bn. Thereafter, we will do tier 2 capital of another $200m. But that is likely by first quarter of next year. Our current capital base is N60bn. By the time we ploughed back the 2014 profit, we will be about N90bn in capital.
“The bank Capital Adequacy Ration, CAR, will be 17 per centfar above 10per cent of regulatory requirements and our Non-Performing Loans, NPL is 2.7 per cent, which is far below of regulatory threshold of five per cent.
“Some people believe that you must be big but our view today is that you must be efficient, deliver returns to shareholders. It doesn’t matter how big you are.”
“But overall, it makes a sense to have a strategic plan on size, and ours is in another five years, we will be among top six banks in the country. In terms of profitability, we will continue to be top.”