Major shareholders of Sterling Financial Holdings Company PLC, a leading Nigerian financial conglomerate, have expressed their satisfaction with the company’s leadership and financial performance during its inaugural annual general meeting. Despite a challenging macro-economic environment, the group has shown impressive growth in its first full year of operations.
The holding company reported a 36% increase in asset size, reaching N 2.5 trillion, and a 26.6% rise in earnings, delivering N 221 billion. The annual report and financial statements for the 2023 financial year highlighted these significant performance improvements.
Breaking down the financials, the group earned N 156 billion in interest income and N 65.7 billion in non-interest income, reflecting growth of 21.5% and 40.6% respectively from the previous year. Customer deposits into its banking subsidiaries, Sterling Bank and The Alternative Bank, amounted to N 1.8 trillion, contributing to a profit of N 21.6 billion and earnings of 75 kobo per share for 2023. These metrics represent continued growth of 11.8% and 11.9% respectively from 2022.
Sterling HoldCo’s Group Chief Executive Officer, Yemi Odubiyi, informed shareholders of plans to raise up to N200 billion from the market to strengthen the company in line with evolving regulatory standards and new capital requirements introduced by the Central Bank of Nigeria (CBN). He emphasized the company’s strategy to build non-banking revenue lines and offer a wider range of services under the Sterling brand.
Odubiyi also highlighted the performance of the company’s subsidiaries and reiterated the group’s commitment to maintaining a customer-centric approach and making strategic investments in sustainable ventures. The company’s HEART strategy—focusing on Health, Education, Agriculture, Renewable Energy, and Transportation—has driven year-on-year profit growth despite macroeconomic challenges.
The transformation from a bank to a financial holdings company, completed with the delisting, transferring, and relisting of shares to Sterling Financial Holdings Company on the NGX, allows Sterling to explore new sectors within financial services, including pensions, asset management, payment services, and real estate.
Sterling’s recent achievements include being listed among the 100 fastest-growing companies in Africa by the Financial Times, being named Africa’s Most Valuable Commercial Bank Brand for 2023 by African Brand Magazine, and ranking as a top three employer in Nigeria by LinkedIn. Additionally, Sterling received citations for Company Leadership Gender Diversity, Gender Diversity in Supply Chain, and Family-Friendly Workplace from the International Finance Corporation (IFC) and the Nigerian Exchange (NGX) at the Gender Leader Awards 2023.