Sterling Bank Plc has moved to strengthen its capital base as it starts the process of concluding the multi-currency subordinated debt of N31 billion, about $200 million, in the new year.
The bank whose capital base is N65 billion, desires to cross into the new year with about N100 billion.
Yemi Adeola, managing director and chief executive officer of the bank, disclosed this on Thursday at a media interactive session held in Lagos.
“I alluded to the issue of capital that we are at N65 billion, it is our desire to cross the year with about N100 billion in capital by the end of this year and we are at the tail end of finalising that. We believe we will make it happen. As we go into the new year, we start the process of concluding the multi-currency subordinated debt of N31 billion which is about $200 million, all these to strengthen our capital base as a financial institution and to enable us do more than we have done”, he said.
In its medium-term plan, the bank intends to be one of the top six banks in Nigeria by 2020. Consequently, the bank desires to be the leading consumer banking franchise, or the bank of choice for customers in its target market.
Adeola disclosed that the bank will continue to diversify its retail funding base, ensure non-performing loans do not exceed three percent even though the regulatory threshold is five percent.
“We will continue to diversify income streams, a top quarter position in all our operating areas. We will maintain our investment grade in credit rating and will continue to post double digit revenue growth year-on-year”, he said.
According to him, the bank plans to increase the number of its automated teller machine (ATM) terminals to 1,000 in 2015 from the current number of 585.
Taking a position on the fall in oil price, Adeola said the fundamentals of oil industry do not justify what has happened.
“What has happened I can tell you authoritatively is purely political. The fundamentals of oil industry do not justify the sharp fall in oil price that we have seen and it will get to a point after all the political issues have been resolved, it will bottom out and it will start bouncing back”, he said.
