Olufemi Adeyemi
This capital injection, amounting to approximately N75 billion, was facilitated through a private placement involving a consortium of domestic investors and ultra-high-net-worth individuals in Lagos last week, and is currently undergoing final regulatory approvals.
During the signing ceremony for the placement, Yemi Odubiyi, the Group Chief Executive Officer of Sterling Financial Holdings Company, remarked that this capital raise reflects the market's confidence in the company's vision and potential.
Odubiyi stated, “The choice of our investors to place their hard-earned capital with Sterling HoldCo stems from our capability to challenge the status quo in Nigeria’s financial services landscape. Our investors understand that, in addition to declared profits and dividend distributions, we are an organization that has consistently showcased its ability to innovate, creating and capitalizing on new opportunities both within and outside the industry to deliver value to all stakeholders.”
He further added, “From our humble origins as a merchant bank, we have transformed into a dynamic entity with a proven history that transcends traditional banking. Now equipped with a versatile technology framework tailored to meet the unique demands of the market, we are confident in our capacity to seize significant growth opportunities in Nigeria and beyond.”
In conclusion, the Group CEO emphasized, “Our vision, achievements, and journey continue to attract the highest level of investor confidence—more capital. This funding not only signifies the trust our investors have in us but also acts as a strong endorsement of our strategic direction and future prospects. With this support, we reaffirm our dedication to fostering social, sectoral, and economic growth beyond the realm of banking.”
Through the investment and incubation of new subsidiaries, we aim to emphasize value creation that fosters and maintains growth for both the organization and the national economy. Our investment approach is rooted in sustainable methodologies that promise long-term benefits for society and reliable returns for our investors.
In the previous year, Sterling HoldCo evolved from a commercial banking institution into a comprehensive financial holdings entity, comprising two subsidiary banks: The Alternative Bank, which specializes in financing, and Sterling Bank, a traditional commercial bank. With several significant ventures in development, the holding company is strategically equipped to capitalize on opportunities that extend beyond those accessible to its competitors.
Sterling HoldCo has experienced a consistent upward trajectory, evidenced by a 51% increase in profit before tax for the first half of 2024 compared to the same timeframe in 2023, alongside a 19% growth in the company’s total assets within just the initial half of 2024.
Sterling is distinguished by its HEART of Sterling strategy, which directs substantial investments into the Healthcare, Education, Agriculture, Renewable Energy, and Transportation sectors of the Nigerian economy, complemented by a strong brand presence and exceptional talent management practices.