Sterling Bank boss predicts tougher times for banks next year


Managing Director of Sterling Bank, Yemi Adeola, has predicted tough times for the banking industry next year 2016.
He said that current challenging business environment makes the coming year very unpredictable for businesses.
Adeola said these citing the raising of interest rates, sharp decline in the price of oil and the dwindling revenues among other macro-economic challenges as would further escalate the unpleasant conditions.
The Federal Reserves of the United States of America’s (USA) increase of interest rates by 0.25 percent would draw investors out of Nigeria for better returns, putting the naira under serious pressure. The last time the FED adjusted its interest rate was 10 years ago, he said.
He, however, said despite the challenging times, Sterling Bank was targeting the number six position in the banking industry by the year 2020.
Sterling Bank’s boss, who unfolded the financial institution’s plans for 2016, said it will continue to push its on-going improvement on e-channels to deliver quality services to customers.
He also disclosed that aside from targeting improved funding, it would work toward increasing its customer base by one million next year. In addition to improving its lending, Adeola said the bank will expand its focus as well as drive its financial inclusion.
On lending, Adeola said the bank would improve lending and establish a feedback mechanism, in addition to pursuing a double digit revenue growth.
The bank which is the first to be rated by the international rating agency Moody’s recorded impressive ratios which are 15 percent return on equity, 19 percent on cash reserve ratio and has kept its non-performing loans within the regulatory bench-mark.
Sterling Bank’s helmsman who has served as Managing Director of the bank for seven years, told journalists that the institution has put in place good and sustainable succession plans.
On the bank’s achievements, Adeola said the 10-year old bank has increased its branch net-work from 50 in 2006 to 185 in 2015. Having grown its Automated Teller Machines from zero to 801 this year, its
total assets and contingents have also increased from N110 billion in 2006 to a little short of N1 trillion.
While its deposit rose from N75 billion to N355 billion in the review period, the shareholders’ funds now stood at N90 billion from N26 billion in 2006. From 200,000 customers in 2006 to 1.4 million, its
market capitalization which stood at N56 billion currently shows resilience.

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