Cynthia Ezekwe
Shareholders of Sterling Financial Holdings Company Plc have granted the board’s request to raise fresh funds amounting to N200 billion, set to fortify the organisation and pave the way for sustained growth.
This authorisation was granted at the inaugural annual general meeting (AGM) of the company, which took place recently.
Addressing investors at the meeting, Yemi Odubiyi, Sterling HoldCo’s group chief executive officer, explained that the funds would be deployed to strengthen the capital base of Sterling Bank, the company’s flagship banking subsidiary, positioning the institution for continued growth and expansion.
The Central Bank of Nigeria, in a significant move to strengthen the financial industry in the country, announced a revision to the minimum capital requirements for different categories of banks. The new capital base for commercial banks with national authorisation was set at N200 billion, while banks with regional authorisation were mandated to hold a minimum capital of N50 billion.
The new minimum capital requirements, which went into effect on April 1, 2024, mandated commercial banks with international authorisation to maintain a minimum capital of N500 billion, while merchant banks were required to have a minimum capital of N50 billion. Non-interest banks with national authorisation were required to have a minimum capital of N20 billion, and regional non-interest banks a minimum capital of N10 billion. The CBN provided a duration of 24 months for the implementation of the new requirements, with the deadline set for March 31, 2026.
Odubiyi underscored the positive impact that the planned capital infusion will have on the bank’s overall financial strength and potential for sustainable growth. He emphasised the robust performance of Sterling HoldCo’s subsidiaries, including Sterling Bank and The Alternative Bank, which offer conventional and ethical banking services, respectively. Odubiyi also revealed the group’s strategic plans to expand its revenue streams beyond banking, offering a wider coverage of services under the established Sterling brand name. These efforts, he noted, are expected to foster further growth and deliver increased value for shareholders.
Reiterating the company’s commitment to customer-centricity and strategic investments in sustainable ventures that are in line with its core values, Odubiyi underscored Sterling HoldCo’s commitment to ongoing growth and progress. He affirmed that the company’s focus on its customers, combined with strategic investments in sustainable ventures, will ensure continued growth and advancement for the company and its stakeholders.
