Sterling Bank’s revenue may weaken as building goes up in flames

..shareholders react
Sterling Bank Nigeria Plc may have suffered a setback, following the fire incident that affected its Apapa, Lagos branch on Wednesday.

Consequently, financial analysts say that revenue projections by the bank in the third quarter and 2917 financial year may weaken, because its Apapa Lagos branch, one of its strong revenue targets, has been torched by suspected arsonists.

The Daily Times gathered that the fire incident, which gutted the bank’s branch,was as a result of mayhem that broke out in the neighbourhood, following crash between petroleum tanker drivers and personnel of the Nigerian police.

Apapa is a home to the nation’s sea ports-Apapa Wharf, Tincan Island Wharf- among other cargo destinations.

A mobile police officer was alleged to have shot and killed a tanker driver, following arguments that ensued between the two, however, the tanker driver’s death was allegedly caused by the security personnel attached to the bank’s Apapa branch, and this triggered an attack by the mob, which later gathered to protest the excesses of the police officer attached to the bank.

The protesters in their rage, subsequently set the bank ablaze.

The protest later worsened and caused a stamped in the neighbourhood, which led to the sudden closure of many banks in the Apapa vicinity, for fear of spiral attacks by hoodlums.

Daily Times further gathered that all banks in the Apapa business district closed shops and evacuated their workers for fear of attack on their facilities and personnel.

An eyewitness who spoke to Daily Times on condition of anonymity, said the incident started when the tanker driver “refused to give the police officer money he had demanded, and this led to a heated argument between them, and the officer fired a shot at him by mistake.”

However, cross section of capital market stakeholders have reacted to the incident, saying, the attack on the bank will certainly affect the bank’s revenue projections for the third quarter and the 2017 financial year.

Mr. Okezie Boniface of the Progressive Shareholders of Nigeria told Daily Times that the incident is definitely going to affect the bank’s financials for the third quarter and the end year, more so as the Apapa branch is a buoyant branch.

‘You know that ye bank didn’t pay dividend for 2016, not because they didn’t make profit, now they will have another story to tell shareholders why they will not pay dividend in 2017.

Okezie said that though the bank may have insured its activities, but losses from the attack would also be borne by profits made during the day.

“It is a temporary setback, the bank will overcome it, meanwhile, bear in mind that all the branches are insured” Okezie said.

Another stakeholder, who spoke on condition of anonymity said that the fire incident will worsen the bank’s financial standing, hence Apapa represents one of the buoyant branches of the bank.

Meanwhile, the bank, in a statement signed by Mr. Henry Bassey, Chief Marketing Officer, Brand Management & Communications Group, announced that an armed mobile policeman fleeing from an irate mob after shooting a tanker driver ran into the premises of the bank to escape being lynched.

The bank further explained that, “The mob got upset and attacked the bank with the intention of unleashing mayhem on staff and customers.”

“Security operatives attached to the bank disarmed and arrested the fleeing mobile policeman but did not hand him over to the irate mob.

“The mob got upset and attacked the bank with the intention of unleashing mayhem on staff and customers. The branch’s reception area was vandalized and set ablaze.

“The security operatives attached to the branch prevented the mob from entering the branch while evacuating staff and customers before the arrival of police reinforcement. The branch has been temporarily shut down.

“We wish to inform all our customers that normal services will continue at nearby branches and through all our electronic channels.

“Sterling Bank is working with security agencies to resolve the issue.’’ The bank said.