BY BLAISE UDUNZE
Sterling Bank Plc has disclosed plans to increase its capital base to about N100 billion by the end of 2014 from the present N65 billion.
The Managing Director and Chief Executive Officer of the bank, Yemi Adeola, who made the disclosure while briefing journalists last week, explained that the institution would start the process of concluding the multi-currency subordinated debt of N31 billion, which is about $200 million to strengthen its capital base and enable the bank do more business in the years ahead.
Adeola noted that the bank plans to increase its ATM points to 1000 to mitigate the costs of Remote-on-Us on customers across its 173 branches across the country.
He stated that the need arose as the bank has over 3.5 per cent of the industry’s market share, with over one million-customer base.
According to him, Sterling Bank currently has N680 billion-deposit base, with N65 billion equity as against N26 billion in 2006 and 2.1 per cent non-performing loan ratio.
He stated also that the bank successfully completed equity issuance by way of rights to existing shareholders with net proceeds of N12.1 billion, adding that it was in the process of concluding the private placement of N20 billion ($120 million) to further support its capital position.
Adeola noted that the financial institution had desired very much to cross over the year with N100 billion capital base, while ruling out any acquisition plan.
He noted that the use of Basel II and III in computation of various financial positions of banks would impact on financial institutions, hence the need to be ready ahead of its commencement.
Meanwhile, the bank chief said that plans are underway to change its current banking application to accommodate structural reforms and expanding its businesses.
“We are in the process of changing our banking application, which is expected to be completed within the next 12-18 months at an estimated cost of about $5 million.
Source : SunOnline
