Sterling Bank, backed by Mike Adenuga, sees the future beyond banking and is set to become a holding company

Level 2 lender Sterling Bank prepares for the decisive phase of its evolution into a holding company, while defining the shape of the future beyond its current traditional banking franchise as the board waits for the central bank and other regulators give the green light to this decision.

With assets expanding 11.4% quarter-on-quarter to reach N1.8 trillion at the end of June, the hope is that the lender can do much more and raise capital at scale to beat the tide. competition when he wins holding company status.

This allows the bank to break from its current vertical market mold built around traditional banking in a model that captures other businesses within financial services, a privilege for which lenders operating core banking services are not configured.

“The program would provide several benefits to shareholders of the bank, some of which include facilitating diversification into other permitted business lines,” Sterling Bank said in a statement, echoing a comment from the chairman of the board. administration, Asue Ighodalo.

Asue Ighodalo, Chairman of Sterling Bank

It could also help fuel “growth and increase shareholder value and facilitate a consolidated financial strength of the group, which will improve access to and ability to raise capital.”

Mike Adenuga, sixth richest man in Africa and third in Nigeria by Forbes ratingowns 25% of the bank’s outstanding shares, or 7.2 billion units, held through Silverware Investments Limited.

Sterling Bank said monday it would drop its current name for “Sterling Financial Holdings Company” when the transition is complete and dusted off.

Holding companies, often acting as the parent companies of the various dependent subsidiaries, hold majority stakes in the companies they depend on, giving them the power to oversee and make key decisions on their behalf, particularly in the area of corporate governance with little or no interference in their day-to-day operations.
One of the main attractions of this business structure, which Nigerian banks are increasingly adopting, is that the entity’s other subsidiaries will not be held liable if one of them fails.

“The holding company also provides Sterling with another opportunity to build on its successful HEART strategy, which has seen the bank make consolidated investments in healthcare, education, agriculture, renewable energy and transports.”

Announcement TEXEM

Last December, Sterling Bank obtained approval in principle from the Central Bank of Nigeria to start an interest-free banking unit to be called Alternative Bank Limited.


Support the integrity and credibility journalism of PREMIUM TIMES

Good journalism costs a lot of money. Yet only good journalism can guarantee the possibility of a good society, an accountable democracy and a transparent government.

For free and continued access to the best investigative journalism in the country, we ask that you consider providing modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you help sustain relevant journalism and keep it free and accessible to everyone.

Make a donation



ANNOUNCEMENT TEXT: Call Willie – +2348098788999






Announcement of the PT Mag campaign