Sterling Bank Obtains CBN’s Approval to Restructure to Holding Company
Sterling Bank Plc said it has obtained the Central Bank of Nigeria‘s approval in principle to enable the lender to restructure as holding company.
In a statement submitted to the Nigerian Stock Exchange, the Chief Executive Officer of Sterling Bank Plc, Mr. Abubakar Suleiman said it is pleased to announce that the Bank has obtained the apex bank’s approval in principle to enable it restructure as a Holding Company.
According to the statement, the Bank’s desire to operate as a Holding Company was driven by its plan to spin off its Non-Interest Banking window which became operational in January 2014 into an autonomous entity.
The Bank believes that the proposed structure incorporates efficiencies around operations and financing efforts that will support the individual businesses in reaching full potential
Sterling Bank expect this full potential to be realised through increased portfolio diversification.
It said the Holding Company structure enables the Non–Interest Bank and other non-core businesses achieve greater results based on focused management of the distinct businesses.
Lender also highlighted that Holdco could help improved efficiency resulting from the consolidation of key functions such as Compliance, Risk Management and other support functions, yielding improved prospects for individual business growth.
This also include enhanced Corporate Governance which serves to promote a consistent culture across the group and quality of service to customers thereby facilitating sustainability of earnings.
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It stated further the structure would create better access to capital by leveraging the consolidated financial strength of the group which would have been otherwise difficult for each individual subsidiary company.
“Going into the Holding Company structure, our desire is to entrench our business model premised on social capitalism where we believe that private sector capital and market-based tools will offer the best types of solutions to Nigeria’s most pressing social and environmental challenges.
“The Holding Company gives us the structure to explore our business model further“, the statement reads.
The bank explained that the Holding Company is designed to operate on 3 major premises – Specialization, Partnership and Digitization.
The management detailed that the Conventional Bank will focus on building skills and using technology to provide solutions in the areas that are critical to development in the country – Health, Education, Agriculture, Renewable Energy, Transportation (HEART).
However, its Non-Interest Bank will focus on building partnerships that connect individuals and businesses leveraging technology to create business optimization while solving for an individual’s daily financial needs.
“The overall business will focus on social impact, corporate responsibility and religious compliance in its dealings.
“Our Digitization drive will create an enabling environment for both financial institutions to grow while providing services and support to build efficiencies in different ecosystems.
“The execution of our plans is fully dependent on our interwoven operating model of Agility, Specialization and Digitization.
“Essentially, for us to be successful, we require people who are adaptable and knowledgeable running processes that are simple, quick and tech-led to ensure efficiency”, the bank stated.
Meanwhile, Sterling Bank hinted that it is currently in the process of meeting the conditions for the final approval.
Sterling Bank Obtains CBN’s Approval to Restructure to Holding Company
