Sterling HoldCo’s N75bn capital injection highlights investor confidence – CEO

The Group Chief Executive Officer of Sterling Financial Holdings Company, Yemi Odubiyi, has stated that the injection of approximately N75bn in fresh capital into the financial group through a private placement from a consortium of domestic investors and high-net-worth groups reflects investors’ confidence in its strategies.

According to a statement from the banking group on Wednesday, Odubiyi said that the capital raise signified the market’s confidence in the vision and potential of the enterprise.

The capital raise is part of Sterling Financial Holdings Company’s step to meet the Central Bank of Nigeria’s recapitalisation requirements.

In late March, the CBN announced a new capital base for banks operating in the country.

This private placement deal, which was closed in Lagos last week, is in the final stages of approval by the regulators, according to the group.

Odubiyi said, “The investors’ decision to entrust Sterling HoldCo with their hard-earned capital is built on our ability to challenge the norm in Nigeria’s financial services sector. Our investors recognise that beyond the profits declared, and dividend payouts, we are an enterprise that has consistently demonstrated capacity for innovation, creating and leveraging new opportunities within and outside the industry to deliver value to all our stakeholders.

“From our modest beginnings as a merchant bank, we have evolved into a dynamic enterprise with a proven track record that extends well beyond conventional banking. Now powered by an embedded technology stack that is flexible to the unique demands of the market, we are more than confident in our ability to capture major growth opportunities in Nigeria and beyond.”

The Sterling HoldCo Group CEO added that the infusion of funds not only reflected the trust that investors placed in the group but also served as a powerful endorsement of its strategy and future potential.

“With it, we reaffirm our commitment to driving social, sectoral, and economic growth beyond banking. By investing in and incubating new subsidiaries, we will prioritise value creation that stimulates and sustains growth for both the enterprise and the nation’s economy. Our investment strategy is anchored in sustainable practices that will deliver long-term value for society and consistent returns for investors,” he asserted.

In 2023, Sterling HoldCo transitioned from a commercial bank to a full-fledged financial holdings company with two subsidiary banks: the specialised financing arm, The Alternative Bank, and the conventional commercial bank, Sterling Bank. With several key businesses in the pipeline, the holding company is strategically positioned to seize opportunities beyond those available to its peers.

Sterling HoldCo’s performance has seen a steady rise in its fortunes, with a 51 per cent increase in its profit before tax in H1 2024 compared to the same period in 2023 and a 19 per cent growth in the total assets of the company in just the first half of 2024.

-By Oluwakemi Abimbola

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