Sterling Bank Plc
Condensed Unaudited Group Interim Financial Statements
June 2022
Sterling Bank Plc and Subsidiary
Condensed Interim Financial Statements for the Period Ended 30 June 2022
Directors' Report
For the period ended 30 June 2022
The Directors present their second quarter report on the affairs of Sterling Bank Plc ("the Bank"), together with the unaudited Group Financial Statements for the period ended 30 June, 2022
Principal activity and business review
Sterling Bank Plc is engaged in commercial banking services with emphasis on retail, commercial and corporate banking, trade services, investment banking activities and non-interest banking. It also provides wholesale banking services including the granting of loans and advances; letter of credit transactions, money market operations, electronic banking products and other banking activities.
Legal form
Sterling Bank Plc, (formerly known as NAL Bank Plc) was the pioneer merchant bank in Nigeria, established on 25 November, 1960 as a private liability company and was converted to a public limited company in April, 1992.
Following the consolidation reforms introduced and driven by the Central Bank of Nigeria in 2004, the Bank emerged from the
consolidation of NAL Bank Plc, Indo-Nigerian Bank Limited, Magnum Trust Bank Plc, NBM Bank Limited and Trust Bank of Africa
Limited. NAL Bank Plc as the surviving bank adopted a new name for the enlarged entity, 'Sterling Bank Plc'.
The enlarged Bank commenced post merger business operations on January 3, 2006 and the Bank's shares are currently quoted on the Nigerian Exchange (NGX).
In October, 2011, the Bank had a business combination with Equitorial Trust Bank Limited to re-position itself to better compete in the market space.
In compliance with the CBN guidelines on the review of the Universal Banking model, the Bank divested from its four subsidiaries and one associate company on 30 December, 2011.
Sterling Bank Plc registered Sterling Investment Management Plc (the SPV) with the Corporate Affairs Commission as a public
liability company limited by shares with authorised capital of N2,000,000 at N1.00 per share. The main objective of setting up
the SPV is to raise or borrow money by the issue of bonds or other debt instruments. The SPV is a subsidiary and is consolidated
in the financial statements of the Bank. The Bank and its subsidiary is collectively referred to as "the Group".
The Bank has 160 branches including cash centres as at 30 June 2022.
Operating results | ||||
Highlights of the Group and Bank's operating results for the period are as follows: | ||||
Group | Bank | |||
In millions of Naira | June 2022 | June 2021 | June 2022 | June 2021 |
Gross earnings | 78,381 | 67,263 | 77,321 | 66,089 |
Profit before taxation | 8,619 | 6,061 | 8,625 | 6,017 |
Taxation | (606) | (370) | (589) | (370) |
Profit after taxation | 8,013 | 5,691 | 8,036 | 5,647 |
Transfer to statutory reserve | 1,205 | 854 | 1,205 | 847 |
Transfer to general reserve | 6,808 | 4,837 | 6,831 | 4,800 |
8,013 | 5,691 | 8,036 | 5,647 | |
Earnings per share (kobo) - Basic | 28k | 20k | 28k | 20k |
Earnings per share (kobo) - diluted | 28k | 20k | 28k | 20k |
June 2022 | December 2021 | June 2022 | December 2021 | |
NPL Ratio | 1.09% | 0.71% | 1.09% | 0.71% |
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Sterling Bank Plc and Subsidiary
Condensed Interim Financial Statements for the Period Ended 30 June 2022
Directors who served during the period
The following Directors served during the period under review:
Name | Designation | Date appointed | Interest represented | |
/resigned | ||||
1 | Mr. Asue Ighodalo | Chairman | Moehi Nigeria Limited | |
Retired | ||||
2 | Dr. (Mrs.) Omolara Akanji | Independent Director | 25/02/2022 | |
3 | Mr. Michael Ajukwu | Independent Director | ||
4 | Mr. Olaitan Kajero | Non-Executive Director | STB Building Society Limited | |
Eltees Properties | ||||
Rebounds Integrated Services Limited | ||||
5 | Mrs. Tairat Tijani | Non-Executive Director | Ess-ay Investment Limited | |
6 | Mr. Michael Jituboh | Non-Executive Director | Dr. Mike Adenuga | |
7 | Mr. Ankala Prasad (Indian) | Non-Executive Director | State Bank of India | |
Alfanoma Nigeria Limited | ||||
8 | Mrs. Folasade Kilaso | Non-Executive Director | Plural Limited | |
Reduvita Limited | ||||
Quakers Integrated Services Limited | ||||
Concept Features Limited | ||||
Appointed | Silverlake Investment Limited | |||
9 | Mr. Olatunji Mayaki | Non-Executive Director | 13/04/2022 | Slick Composite Ventures Ltd |
Appointed | ||||
10 | Mrs. Olusola Oworu | Independent Director | 13/04/2022 | |
11 | Mr. Paritosh Tripathi (Indian) | Non-Executive Director | State Bank of India | |
12 | Mr. Abubakar Suleiman | Managing Director/CEO | ||
13 | Mr. Yemi Odubiyi | Executive Director | Resigned | |
14 | Mr. Emefienim Emmanuel | Executive Director | 28/02/2022 | |
15 | Mr. Tunde Adeola | Executive Director | ||
16 | Mr. Raheem Owodeyi | Executive Director |
Going Concern
The Directors assess the Group and the Bank's future performance and financial position on an on-going basis and have no reason to believe that the Group will not be a going concern in the year ahead. For this reason, these financial statements are prepared on a going concern basis.
Directors interests in shares
Interest of Directors in the issued share capital of the Bank as recorded in the Register of members and/or as notified by them
for the purpose of section 301 of the Companies and Allied Matters Act 2020 were as follows: | |||||
Number of shares | |||||
June 2022 | June 2022 | December 2021 | December 2021 | ||
Names | Direct | Indirect | Direct | Indirect | |
1 | Mr. Asue Ighodalo | - | 62,645,242 | - | 62,645,242 |
2 | Mr Michael Jituboh | - | 1,620,376,969 | - | 1,620,376,969 |
3 | Dr. (Mrs) Omolara Akanji * | - | - | - | - |
4 | Mr. Michael Ajukwu | - | - | - | - |
5 | Mr. Olaitan Kajero | - | 1,592,555,294 | - | 1,592,555,294 |
6 | Mrs. Tairat Tijani | - | 1,444,057,327 | - | 1,444,057,327 |
7 | Mrs. Folasade Kilaso | - | 1,440,337,670 | - | 1,440,337,670 |
8 | Mrs. Olusola Oworu | 1,383,017 | - | - | - |
9 | Mr. Olatunji Mayaki | - | 7,198,776,004 | - | - |
10 | Mr. Abubakar Suleiman | 62,133,276 | - | 47,325,727 | - |
11 | Mr. Yemi Odubiyi | 58,637,787 | - | 26,471,708 | - |
12 | Mr. Emefienim Emmanuel ** | - | - | 20,527,369 | - |
13 | Mr. Tunde Adeola | 28,966,248 | - | 27,244,025 | - |
14 | Mr. Raheem Owodeyi | 18,338,626 | - | 15,733,951 | - |
15 | Mr. Ankala Prasad | - | 2,549,505,026 | - | 2,549,505,026 |
16 | Mr. Paritosh Tripathi | - | - | - | - |
- Retired 25/02/2022 **Resigned 28/02/2022
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Sterling Bank Plc and Subsidiary
Condensed Interim Financial Statements for the Period Ended 30 June 2022
Analysis of shareholding
The range analysis of the distribution of the shares of the Bank as at 30 June 2022 is as follows:
Range of shares | Number | % | Number | % | ||
of holders | of units | |||||
1 | - | 1,000 | 32,965 | 37.19% | 14,588,837 | 0.05% |
1001 | - | 5,000 | 25,965 | 29.29% | 58,542,103 | 0.20% |
5,001 | - | 10,000 | 8,842 | 9.97% | 118,393,222 | 0.41% |
10,001 | - | 20,000 | 7,008 | 7.91% | 213,239,353 | 0.74% |
20,001 | - | 50,000 | 5,101 | 5.75% | 373,335,920 | 1.30% |
50,001 | - | 100,000 | 3,279 | 3.70% | 602,294,014 | 2.09% |
100,001 | - | 200,000 | 2,255 | 2.54% | 602,294,014 | 2.09% |
200,001 | - | 500,000 | 1,818 | 2.05% | 1,488,946,350 | 5.17% |
500,001 | - | 10,000,000 | 1,303 | 1.47% | 3,514,983,594 | 12.21% |
Above 10,000,001 | 110 | 0.12% | 11,354,597,929 | 39.44% | ||
Foreign shareholding | 4 | 0.00% | 10,449,202,790 | 36.29% | ||
88,650 | 100.00% | 28,790,418,126 | 100.00% |
The following shareholders have shareholdings of 5% and above as at 30 June 2022:
June 2022 | June 2022 | December 2021 | December 2021 | |
Holding (units) | % holding | Holding (units) | % holding | |
Silverlake Investment Limited | 7,197,604,531 | 25.00 | 7,197,604,531 | 25.00 |
State Bank of India | 2,549,505,026 | 8.86 | 2,549,505,026 | 8.86 |
Dr. Mike Adenuga | 1,620,376,969 | 5.63 | 1,620,376,969 | 5.63 |
Ess-ay Investments Limited | 1,444,057,327 | 5.02 | 1,444,046,801 | 5.02 |
Acquisition of own shares
The Bank did not acquire any of its shares during the period ended 30 June 2022 (31 December, 2021: Nil).
Property, plant and equipment
Information relating to changes in property, plant and equipment is given in Note 25 to the consolidated and separate financial statements.
Employment and employees
-
Employment of disabled persons
The Bank has a non-discriminatory policy on recruitment. Applications would always be welcomed from suitably qualified disabled persons and are reviewed strictly on qualification. The Bank's policy is that the highest qualified and most experienced persons are recruited for appropriate job levels irrespective of an applicant's state of origin, ethnicity, religion or physical condition.
- Health, safety and welfare of employees
Health and safety regulations are in force within the Bank's premises and employees are aware of existing regulations. The Bank provides subsidies to all levels of employees for medical expenses, transportation, housing, lunch etc. - Employee training and development
The Bank is committed to keeping employees fully informed as much as possible regarding the Bank's performance and progress and seeking their opinion where practicable on matters, which particularly affect them as employees.
Training is carried out at various levels through both in-house and external courses. Incentive schemes designed to encourage the involvement of employees in the Bank's performance are implemented whenever appropriate. - Events after reporting date
There were no events after the reporting date which could have had a material effect on the state of affairs of the Bank as at 30 June 2022 or the profit for the period ended on that date which have not been adequately provided for or disclosed.
BY ORDER OF THE BOARD:
Temitayo Adegoke Company Secretary FRC/2018/NBA/00000018142 20 Marina, Lagos, Nigeria. July 28, 2022
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Sterling Bank Plc and Subsidiary
Condensed Interim Financial Statements for the Period Ended 30 June 2022
Shareholding Structure/ Free Float Status
For the period ended 30 June 2022
30-June-2022 | 31-December-2021 | |||
Description | Unit | Percentage | Unit | Percentage |
Issued Share Capital | 28,790,418,126 | 100% | 28,790,418,126 | 100% |
Substantial Shareholdings (5% and above) | ||||
Silverlake Investment Limited | 7,197,604,531 | 25.00% | 7,197,604,531 | 25.00% |
State Bank of India | 2,549,505,026 | 8.86% | 2,549,505,026 | 8.86% |
Mike Adenuga | 1,620,376,969 | 5.63% | 1,620,376,969 | 5.63% |
Ess-ay Investments Ltd | 1,444,057,327 | 5.02% | 1,444,057,327 | 5.02% |
Total Substantial Shareholdings | 12,811,543,853 | 44.51% | 12,811,543,853 | 44.51% |
Director's Shareholdings (Direct, and Indirect), excluding directors with substantial interests | ||||
Mr Asue Ighodalo (Indirect) | 62,645,242 | 0.22% | 62,645,242 | 0.22% |
Mrs Folasade Kilaso (Indirect) | - | 0.00% | - | 0.00% |
Mr. Ankala Prasad (Indirect) | - | 0.00% | - | 0.00% |
Mrs. Tairat Tijani (Indirect) | - | 0.00% | - | 0.00% |
Olaitan Kajero (Indirect) | - | 0.00% | - | 0.00% |
Mr Tunde Adeola (Direct) | 28,966,248.00 | 0.10% | 27,244,025.00 | 0.09% |
Mr Abubakar Suleiman (Direct) | 62,133,276.00 | 0.22% | 47,325,727.00 | 0.16% |
Mr Michael Jituboh (Indirect) | - | 0.00% | - | 0.00% |
Mrs. Olusola Oworu (Direct) | 1,383,017.00 | 0.00% | - | 0.00% |
Mr. Paritosh Tripathi | - | 0.00% | - | 0.00% |
Mr Yemi Odubiyi (Direct) | 58,637,787.00 | 0.20% | 26,471,708.00 | 0.09% |
Mr. Olatunji Mayaki (Indirect) | 1,171,473.00 | 0.00% | - | 0.00% |
Dr. (Mrs.) Omolara Akanji* | - | 0.00% | - | 0.00% |
Mr. Emmanuel Emefienim (Direct)** | - | 0.00% | 20,527,369.00 | 0.07% |
Mr Michael Ajukwu | - | 0.00% | - | 0.00% |
Mr Raheem Owodeyi (Direct) | 18,338,626 | 0.06% | 15,733,951 | 0.05% |
Total Directors Shareholdings | 233,275,669 | 0.81% | 199,948,022 | 0.69% |
Other Influential Shareholdings | ||||
Hak Air Limited, | 968,205,643 | 3.36% | 968,205,643 | 3.36% |
Hyers Capital Limited | 575,808,362 | 2.00% | 575,808,362 | 2.00% |
Pacific Credit Limited | 554,273,018 | 1.93% | 554,273,018 | 1.93% |
ACML Nominee 003 | 605,581,209 | 2.10% | 513,954,583 | 1.79% |
Adeola Tajudeen Afolabi | 504,035,555 | 1.75% | 504,035,555 | 1.75% |
Festus Alani Fadeyi | 480,449,895 | 1.67% | 480,449,895 | 1.67% |
Rankinton Investments Inc. | 702,093,233 | 2.44% | 702,093,233 | 2.44% |
Glomobile Limited | 354,458,383 | 1.23% | 354,458,383 | 1.23% |
Kogi United Co. Nig. Ltd | 343,173,014 | 1.19% | 346,835,811 | 1.20% |
Sterling Bank Co-operative Multipurpose | ||||
Society Limited | 469,390,579 | 1.63% | 751,750,014 | 2.61% |
Total other Influential Shareholdings | 5,557,468,891 | 19.30% | 6,419,170,472 | 22.30% |
Free Float in Units and Percentage | 10,188,129,713 | 35.39% | 9,361,075,495 | 32.51% |
Free Float in Value | N15,689,719,758.02 | N14,135,223,997.45 |
* Retired 25/02/2022 **Resigned 28/02/2022
Declaration:
- Sterling Bank Plc with a free float percentage of 35.39% as at 30 June 2022, is compliant with The Exchange' free float requirements for companies listed on the Main Board.
- Sterling Bank Plc with a free float value of N14,135,223,997.45 as at 31 December 2021, is compliant with The Exchange's free float requirements for companies listed on the Main Board.
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Sterling Bank plc published this content on 30 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 July 2022 02:12:06 UTC.