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 Aduragbemi Omiyale
The Central Bank of Nigeria (CBN) has reaffirmed that the old and new Naira notes will continue to be used for financial transactions in the country beyond December 31, 2024.
There had been rumours that the old and redesigned N200, N500, and N1,000 banknotes would no longer be legal tender from Wednesday, January 1, 2025, because the central bank would phase out the notes in compliance with a Supreme Court judgement of November 29, 2023.
But the apex bank, in a statement signed by its acting Director of Corporate Communications, Mrs Hakama Ali, on Friday, clarified that the apex court’s judgement being cited did not authorise the bank to phase out the banknotes by the end of this year.
According to her, the court allowed the CBN to leave the old and new notes to be used concurrently until it decides to gradually phase out the former.
The central bank’s spokesperson urged members of the public to disregard claims suggesting the old series of these denominations would cease to be valid at the end of this year.
She urged them to continue to accept all Naira notes for daily transactions, encouraging banks to also adopt alternative payment methods such as electronic channels to reduce the pressure on physical cash usage.
“The Central Bank of Nigeria (CBN) has observed the misinformation regarding the validity of the old N1000, N500, and N200 banknotes currently in circulation.
“In line with the bank’s previous clarifications and to offer further assurance, the CBN wishes to reiterate that the subsisting Supreme Court ruling granted on November 29, 2023, permits the concurrent circulation of all versions of the N1000, N500, and N200 denominations of the Naira indefinitely.
“For the avoidance of doubt, all versions of the naira, including the old and new designs of N1000, N500, and N200 denominations, as well as the commemorative and previous designs of the N100 denomination, remain valid and continue to be legal tender without any deadlines,” the statement noted.
By Adedapo Adesanya
Access Bank Plc, the banking subsidiary of Access Holdings Plc, has entered into a binding agreement with South African-based Bidvest Group Limited for the acquisition of 100 per cent equity stake in Bidvest Bank Limited.
The deal for the 24-year-old South African lender is due to be completed in the second half of 2025, upon regulatory approval.
This shows Access Bank’s further expansion plans in line with goals set by its late founder, Mr Herbert Wigwe.
The agreement to acquire 100 percent stake in Bidvest Bank reflects Access Bank’s commitment to strengthening its footprint in South Africa and consolidating on its position as the continent’s gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies.
Bidvest Bank, founded in 2000 is a niche and profitable South African financial institution providing a diverse range of services, including corporate and business banking solutions and diverse retail banking products.
As of its year ended June 2024, Bidvest Bank reported total assets equivalent of $665million and audited profit before tax of $20million.
Upon conclusion of this acquisition, Bidvest Bank will be merged with the bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.
This is coming just as the bank opened a new branch in Malta as part of efforts to focus on international trade finance after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
The Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
By Modupe Gbadeyanka
To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.
It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.
This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.
It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.
“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.
“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.
“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).
“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.
Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism8 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking6 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking2 years agoFirst Bank Announces Planned Downtime
-
Sports2 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
-
Technology4 years agoHow To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN