Sterling Bank Plc plans to raise N31 billion ($200 million) beginning from early 2015 and the deployment of more Automated Teller Machines (ATMs) to reach 1000 mark.
The plan to raise the multi-currency subordinated debt in the New Year was part of the bank’s strategies to shore up its capital.
Besides, the lender also noted that the plan to increase its ATM points to 1000 was to mitigate the costs of Remote-on-Us on the customer by ensuring the presence of the 173-branch institution and access as well.
Yemi Adeola, managing director and chief executive officer of the bank, who made the disclosure while briefing journalists, said the need arose as the financial institution has over 3.5 per cent of the industry’s market share, with over one million-customer base.
According to him, the bank currently records N680 billion deposit base, with N65 billion equity, against N26 billion in 2006 and 2.1 per cent Non-Performing Loan ratio.
Adeola, who noted that the lender successfully completed equity issuance by way of rights to existing shareholders with net proceeds of N12.1 billion, added that it is currently in the process of concluding the private placement of N20 billion ($120 million) to further support our capital position.
He noted that the financial institution had desired very much to cross over the year with N100 billion capital base, though ruling out any acquisition plan.
He noted that the use of Basel II and III in computation of various financial positions of banks, which comes up next, will impact on financial institutions, hence the need to be ready ahead of the commencement.
Meanwhile, the bank chief said that plans are underway to change the current banking application; a move aimed accommodating structural reforms and the expanding businesses.
“We are in the process of changing our banking application, which is expected to be completed within the next 12-18 months. The cost is estimated at about $5 million and the investment is not always a one-off thing.
“We have re-aligned our business by market segments for a more focused reach. Our target is to be top six banks in Nigeria by 2020; leading consumer banking franchise (bank of choice for
customers in our target markets); diverse retail funding base; and sustain non-performing loans portfolio at not more than three per cent,” he said.
He also said the bank will work hard to ensure diversified income streams with top quartile position in all its operating areas, sustain investment grade credit rating and double digit revenue growth year-on-year.