Sterling Bank chairman says it might become a holding company
Asue Ighodalo, chairman of Sterling Bank Plc, says the organisation is considering changing its operational structure from that of a bank to a holding company.
Speaking at the bank’s annual general meeting on Thursday, Ighodalo said this proposed new structure will allow the commercial banks and its subsidiaries operate under a parent company.
He said the board of the bank retained most of its net earning to allow it have the capital to finance the bank’s growth ambition and its proposed holding company structure.
He assured shareholders that the decision will be in their best interests.
“As a business, we will continue to innovate with a focus on key growth sectors of the Nigerian economy that will enrich lives and grow the bottom-line,” he said.
“We will also continue to leverage on our areas of strength to drive sustainable growth and deliver superior returns to our esteemed shareholders.”
In 2010, the Central Bank of Nigeria directed commercial banks to either sell all non-core banking enterprises or form a holding company to be able to own such.
Non-core banking enterprises include insurance, asset management and capital market operations
At present, the three banks operating under the holding company structure are First City Monument Bank (FCMB), First Bank and Stanbic IBTC Bank.
Sterling Bank Plc, formerly known as NAL Bank Plc, was the pioneer merchant bank in Nigeria.
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