Banking
Sterling Bank Declares 3 Kobo Dividend After 15% Rise in Profit
By Dipo Olowookere
Shareholders of Sterling Bank Plc will get a cash dividend of 3 kobo for each stock of the company held by shareholders of the organisation as at the close of business of Monday, May 4, 2020.
The disclosure was made on Thursday by the board of the mid-tier bank after it released the financial statements of the company for the year ended December 31, 2019.
The lender said while it would close its register of members from May 5 to 8, 2020, the payment would be done on May 20, 2020, advising shareholders to update their records to receive the payment.
In the results released today, Sterling Bank marginally improved its gross earnings by one percent to N150.2 billion from N148.7 billion in 2018, posting an interest income of N127.3 billion in 2019 over N125.2 billion in the prior year, and a lower interest expense of N62.6 billion in the period under review versus N69.9 billion of the previous year. This left the firm with a net interest income of N64.7 billion in FY 2019, higher than N55.3 billion in FY 2018.
The lender raked more in net fees and commission income in FY19, N14.6 billion, compared with N11.8 billion in FY18, while the trading income reduced to N5.1 billion from N8.6 billion, with other trading income flat at N3.2 billion in the two financial years under comparison.
Furthermore, Sterling Bank printed an operating income of N87.6 billion in 2019 versus N78.8 billion in 2018 and with a credit loss expense of N5.8 billion (vs N5.8 billion in 2018), it closed December 31, 2019 with a net operating income after credit loss expense of N81.8 billion, higher than N73.0 billion as at December 31, 2018.
During the 2019 fiscal year, personnel expenses gulped N14.9 billion compared with N13.2 billion in the corresponding period of 2018, while other operating expenses took N18.1 billion from the bank’s purse as against N16.7 billion in the previous year, with N22.9 billion spent on general and administrative expenses in FY19 versus N20.8 billion in FY18. The lender said the total expenses for the year under consideration stood at N71.1 billion in contrast to N63.5 billion a year earlier.
For the bottom-line of the results, Sterling Bank recorded a profit before tax of N10.7 billion in the 2019 fiscal year, higher than N9.5 billion in the 2018 financial year. Also, its profit after tax increased by 15.2 percent to N10.6 billion from N9.2 billion as a result of the N70 million paid in the year under review as against the N271 million paid 12 months earlier.
Business Post reports that the earnings per share (EPS) of Sterling Bank improved in the FY 2019 to 37 kobo from 32 kobo and on the balance sheet, the total assets slightly increased to N1.2 trillion from N1.1 trillion, while the total liabilities jumped to N1.1 trillion from N1.0 trillion.
During the year, the loans and advances to customers reduced to N618.7 billion from N621.0 billion, while the deposits from customers increased to N892.7 billion from N760.6 billion, with the retained earnings improving to N6.2 billion in 2019 from the N3.3 billion loss in 2018.
By Modupe Gbadeyanka
About N3.6 trillion has been repaid to the Central Bank of Nigeria (CBN) by the Asset Management Corporation of Nigeria (AMCON) since its inception in 2010.
This information was revealed by the chief executive of AMCON, Mr Gbenga Alade, during a media parley to update the press on the activities of the agency.
Mr Alade said at the moment, the organisation still owes the central bank about N3 trillion for toxic assets of banks in the country.
He praised the organisation for its asset recovery drive, stressing that when compared with others across the world, Nigeria has done well.
“It is important to stress that the corporation has done tremendously well, especially when compared to other notable government-owned Asset Management Corporations around the world.
“Based on the balance at purchase, AMCON outperformed other Asset Management Corporations all over the world by achieving over 87 per cent in recoveries despite the unique challenges associated with debt recovery in Nigeria.
“The Malaysian Danaharta, which is adjudged one of the best performing Asset Management Corporation’s, only achieved 58 per cent. The Chinese Asset Management Corporation, despite its stricter laws, achieved just 33 per cent.
“Only the Korean Asset Management Corporation (KAMCO), South Korea, has achieved more recoveries than AMCON, with about 100 per cent. This was due to their brute force with which they chased the obligors.
“Despite KAMCO’s recovery records, the agency is still operational to date with slight realignments in its mandate.
“Other noted Asset Management Corporations that have transitioned into a perpetual institution of the various governments include, China Asset Management Company, Federal Deposit Insurance Corporation (FDIC) USA, and KFW Germany.
“So, gentlemen, without sounding immodest, AMCON has done well, and we will not relent until all the outstanding debts are fully realized,” Mr Alade stated.
On the financial performance of AMCON, he said last year, the firm posted a revenue of N156.25 billion and operating expenses of N29.04 billion, while for the 2025 fiscal year should be a revenue of N215.15 billion and operating expenses of N29.06 billion.
By Modupe Gbadeyanka
One of the non-interest banks in Nigeria, The Alternative Bank (AltBank), has opened a new branch in Effurun, Delta State.
The new office will serve the Edo-Delta region and provide purposeful banking and real financial empowerment for individuals, entrepreneurs, and businesses, a statement from the firm stated.
The lender disclosed that the Effurun branch is a bold move in its mission to reshape banking in Nigeria.
The launch was graced by key dignitaries, including the Ovie of Uvwie Kingdom, Emmanuel Ekemejewa Sideso Abe I; the Chairman of Uvwie Local Government, Anthony O. Ofoni, represented his vice, Andrew Agagbo; and the Special Adviser to the Governor of Delta State on Community Development, Mr Ernest Airoboyi; amongst others.
The Divisional Head for South at The Alternative Bank, Mr Chukwuemeka Agada, emphasised the institution’s commitment to Warri and its surrounding communities.
“By establishing a presence here, we are initiating a transformation in the way banking serves the people of Delta. Our purpose-driven approach ensures that customers’ financial goals are not just met but exceeded,” he stated.
“This branch represents our pledge to empower Warri’s dynamic businesses and families, providing them with the tools to grow without compromise,” Mr Agada added.
“We understand the heartbeat of this community, and we are excited to integrate our bank into the fabric of this dynamic region,” he stated further.
On his part, the representative of the Ovie, Mr Samuel Eshenake, challenged the bank to facilitate development and employment within the Effurun community.
The Regional Head for Edo/Delta at The Alternative Bank, Mr Akanni Owolabi, embraced this challenge, pledging that the bank will work sustainably to drive local commerce.
“At The Alternative Bank, we are committed to being an active partner in the development of Effurun. We see this branch as a catalyst for creating opportunities, driving employment, and supporting the growth of local businesses.
“Our mission is to empower this community, ensuring that every step forward is one of progress, prosperity, and shared success.”
By Aduragbemi Omiyale
A partnership aimed to enable seamless, real-time and secure transactions for cardholders across Africa and the rest of the world has been entered into by Payattitude and PAPSSCARD, the card scheme initiative of the Pan-African Payment & Settlement System (PAPSS).
The collaboration will allow Payattitude cards issued by banks and other deposit-taking institutions to be co-branded with PAPSSCARD, Discover, Diners and Pulse for acceptance across their networks in Nigeria, Africa and worldwide.
As an initiative of the African Export-Import Bank (Afreximbank) and a key financial infrastructure supporting the African Continental Free Trade Area (AfCFTA), the PAPSSCARD scheme will facilitate instant cross-border payments in local currencies.
“This partnership reflects our commitment to cross-enterprise alliances and enabling inclusive, efficient, and borderless payments across Africa and the world
“With Payattitude, Nigerian cardholders and financial institutions can now enjoy the benefits of a Nigerian card that can be used worldwide,” a director at Payattitude, Dr Agada Apochi, said.
The acting chief executive of PAPSSCARD, Mr John Bosco Sebabi, said the aim is “to connect African payment ecosystems, reduce the cost and inefficiencies of cross-border payments, and strengthen African sovereignty over payments infrastructure.
“Collaborating with Payattitude, a key innovator in Nigeria’s payment space, represents a significant step towards a more unified African payment landscape.”
The chief executive of PAPSS, Mr Mike Ogbalu, said, “By bringing together PAPSSCARD’s robust cross-border payment capabilities with Payattitude’s leadership in the Nigerian digital payments, we are taking tangible steps toward building a single African market where individuals and businesses can transact easily and securely, both within and beyond Africa.”
Payattitude is the first-in-kind Nigerian Payment Scheme to pioneer multibank App and USSD Code *569#.
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