Boost confidence with dividend payout, shareholders urge Sterling Bank
Temitope Adebayo
The shareholders of Sterling bank plc have called on the management to boost confidence with dividend payout by next year and reduce its Non Performing Loan (NPL).
They acknowledged that the adoption of International Financial Reporting Standard (IFRS) 9 in 2018 financial year results made it difficult for the management not to declare dividend.
Speaking at the bank’s 57th Annual General Meeting (AGM) in Lagos on Thursday, the President, Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie, commended the management decision of not paying dividend despite reporting impressive earnings.
He maintained that the IFRS 9 has eroded the bank’s capital base which makes it difficult for dividend payout.
Another shareholder, Timothy Adesiyan appreciated the management of Sterling bank for strengthen its digital platform which strategically the lender edge in the future.
According to him, the performance of Sterling bank in 2018 is highly remarkable as total assets rose by 2.9 per cent and profit after tax appreciated by 14.9 per cent.
“The bank’s Capital Adequacy Ratio (CAR) closed 2018 at 13.35 per cent which is above regulatory requirement.”
He explained further that the bank’s exposure in Agriculture should be commended as the management has invested N50billion in the sector.
Responding to shareholders questions, the Managing Director, Sterling Bank, Mr. Abubakar Suleiman, said the bank made progress in 2018, stressing that IFRS 9 implementation affected dividend payout.
He said the bank implementation thus makes the bank stronger.
According to him, “we will work hard to ensure that dividend are paid. We pay serious attention to NPL and make sure it will start to drop.”
Speaking further, he said, “we will continue to make investments in technology, digitisation and data analystics to ensure our organisation is a clear winner in its chosen markets.
“Our aim is to make lending more accessible through Specta, further decentralise the investment market through i-invest and bridge the gap between digital services and physical fulfillment through Cafe One.
“We are changing the way of banking by focusing solely on the customer.”
