Sterling Bank mulls holding company structure

Sterling Bank Plc is considering changing from its current operating structure to a holding company structure.

Under the proposed structure, the holding company will group the commercial bank and its other subsidiaries under a parent company.

Chairman of Sterling Bank Plc, Mr. Asue Ighodalo made this known, while addressing shareholders  at the annual general meeting in Lagos.

Under the banking regulatory regime introduced by the Central Bank of Nigeria (CBN) in 2010, banks were required to concentrate fully on core banking functions.

The model required banks to either sell all non-core banking businesses or form a holding company to hold such non-core banking businesses including activities such as insurance, asset management and capital market operations. Most banks opted to sell or divest from non-core commercial banking businesses.

Three banks currently operate under holding company structure including First City Monument Bank (FCMB) plc, First Bank of Nigeria (FBN) PLC and Stanbic IBTC Bank PLC. Ecobank transnational incorporated-a Pan-African holding company, is the parent company for Ecobank brand.

Ighodalo said the board of the bank decided to retain most of its net earnings for the previous business year because of additional capital required to finance the bank’s growth ambition and its proposed holding company structure.

Ighodalo assured shareholders of the bank’s commitment to delivering tailor-made solutions in line with the global Sustainable Development Goals (SGDS) and Central Bank of Nigeria’s sustainable banking principle.

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