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Sterling Bank Plc. has been fined N8.025 million by the Central Bank of Nigeria (CBN) over varying infractions against stipulated guidelines in the banking industry.
According to the bank’s annual report and financial statements, Sterling Bank incurred the wrath of the apex bank with the contravention of the debit card issuance rule with its issuance of multiple debit cards to its customers thereby attracting a N6 million contravention fine.
The apex bank also slammed a N2 million fine on the bank over its contravention of section 3.2 (a) of the Prudential Guidelines as the bank’s total exposure to government and agencies was in excess of 10 per cent its total credit portfolio. This also saw the bank’s total loans to a particular state government standing in excess of 20 per cent of the bank’s shareholders fund. It also earned a fine of N25,000 for its late rendition of daily returns to the apex bank, making the total contravention fine, N8.025 million
Meanwhile, shareholders of the bank, commended the Board and Management for reporting a profitable performance for the year ended December 31, 2016, despite the harsh macro-economic environment that characterised the year under review.
At the Bank’s 55th annual general meeting (AGM), which held in Lagos on Thursday, Mr. Faruk Umar, President of the Association for the Advancement of the Rights of Nigerian Shareholders (AARNS) adjudged the bank as being prudent and responsible, and also took the opportunity to offer his congratulations to the Bank for winning the Agric Bank of the Year Award from the Nigeria Agriculture Awards (NAA) recently. Umar who projected an even stronger performance by
the Bank in 2017, equally commended the Chairman of the Bank, Mr. Asue Ighodalo for his effective leadership.
Similarly, Sunny Nwosu, Founding National Coordinator of the Independent Shareholders Association of Nigeria (ISAN), extolled the Management of the Bank for its positive and encouraging performance in 2016.
In hisremarks, Chairman of the Bank, Mr. Asue Ighodalo informed the Bank recorded a Profit after Tax of N5.2 billion on Goss Earnings of N111.4 billion for the financial year ended December 31, 2016.
He also said that Net Interest Income increased by 41.6 percent to N56.0 billion as against N39.5 billion in 2015, due to a 22.5 percent increase in Interest Income, while Operating Income was N68.3 billion. Operating Expenses increased marginally to N50.6 billion from N49.7 billion in 2015, despite inflationary pressures –a reflection of the effectiveness of the Bank’s strategic cost control measures.
Further analysis of the bank’s financial position showed that Net Loans and Advances increased by 38.2 percent to N468.2 billion compared to N338.7 billion in 2015 driven primarily by foreign exchange revaluation.
Total Assets (excluding contingent liabilities) increased by 4.3 percent to N834.2 billion from N799.5 billion in 2015 while Shareholders’ Funds stood at N85.7 billion.
Managing Director/Chief Executive of the Bank Mr. Yemi Adeola, said that 2016 was a difficult year for the Nigerian economy as it was characterized by high inflation, weak oil prices, lower crude oil output and foreign exchange supply shortages. These multiple challenges and the various regulatory responses put significant downward pressure on the earnings of banks.
On the future outlook for the Bank under its 2017- 2021 Strategic Plan, Mr. Adeola said, ‘’we expect that the Federal Government’s fiscal intervention schemes alongside supportive economic policies will create pathways for economic recovery.
