Goddy Egene
Sterling Bank Plc is seeking to raise up to N30 billion in the first and second series of its commercial paper (CP) programme to finance its short-term working capital requirements.
The series one CP has a tenor of 182 days and yield of 7.5 per cent, while the series two has a tenor of 270 days and a yield of 8.0 per cent. The offer opened last Wednesday and closed yesterday.
Sterling Bank Plc last Friday reported gross earnings stood at N150.2 billion, up from N148.7 billion in 2018. Profit after tax (PAT) rose from N9.2 billion to N10.6 billion in 2019, showing an increase of 15 per cent.
Commenting on the financial performance, Chief Executive Officer (CEO) of Sterling Bank Plc, Abubakar Suleiman, said the bank recorded an increase in gross earnings, driven majorly by growth in fees and commissions by 24.3 per cent, despite a steady loan base – as it continues to diversify into key sectors of focus – and a decline in trading income.
According to him, in 2019, the bank delivered more than 200 per cent increase in loans to its retail and consumer segment with its loan-to-deposit ratio (LDR) above the regulatory limit all year round.
Abubakar explained that the bank’s digital lending product continued to set the trend with more than N45 billion disbursed to more than 50,000 customers.
“Also, interest expense declined by 10.9 per cent driven by a 19.4 per cent increase in low-cost deposits as the bank continues to grow its retail & consumer base, resulting in a 110 bps drop in the cost of funds and consequently, a 130 bps increase in net interest margin,” he said.
