Sterling Bank Plc and Subsidiary

Condensed Interim Financial Statements for the Year Ended 31 December 2021

Directors' Report

For the year ended 31 December 2021

The Directors present their fourth quarter report on the affairs of Sterling Bank Plc ("the Bank"), together with the unaudited Group Financial Statements for the year ended 31 December, 2021

Principal activity and business review

Sterling Bank Plc is engaged in commercial banking services with emphasis on retail, commercial and corporate banking, trade services, investment banking activities and non-interest banking. It also provides wholesale banking services including the granting of loans and advances; letter of credit transactions, money market operations, electronic banking products and other banking activities.

Legal form

Sterling Bank Plc, (formerly known as NAL Bank Plc) was the pioneer merchant bank in Nigeria, established on 25 November, 1960 as a private liability company and was converted to a public limited company in April, 1992.

Following the consolidation reforms introduced and driven by the Central Bank of Nigeria in 2004, the Bank emerged from the consolidation of NAL Bank Plc, Indo-Nigerian Bank Limited, Magnum Trust Bank Plc, NBM Bank Limited and Trust Bank of Africa Limited. NAL Bank Plc as the surviving bank adopted a new name for the enlarged entity, 'Sterling Bank Plc'.

The enlarged Bank commenced post merger business operations on January 3, 2006 and the Bank's shares are currently quoted on the Nigerian Stock Exchange (NSE).

In October, 2011, the Bank had a business combination with Equitorial Trust Bank Limited to re-position itself to better compete in the market space.

In compliance with the CBN guidelines on the review of the Universal Banking model, the Bank divested from its four subsidiaries and one associate company on 30 December, 2011.

Sterling Bank Plc registered Sterling Investment Management Plc (the SPV) with the Corporate Affairs Commission as a public liability company limited by shares with authorised capital of N2,000,000 at N1.00 per share. The main objective of setting up the SPV is to raise or borrow money by the issue of bonds or other debt instruments. The SPV is a subsidiary and is consolidated in the financial statements of the Bank. The Bank and its subsidiary is collectively referred to as "the Group".

The Bank has 160 branches including cash centres as at 31 December 2021.

Operating results

Highlights of the Group and Bank's operating results for the period are as follows:

Group

Bank

In millions of Naira

December 2021

December 2020

December 2021

December 2020

Gross earnings

149,895

138,897

147,502

136,475

Profit before taxation

13,976

12,372

13,847

12,240

Taxation

(1,080)

(1,130)

(1,080)

(1,130)

Profit after taxation

12,896

11,242

12,767

11,110

Transfer to statutory reserve

1,915

1,686

1,915

1,666

Transfer to general reserve

10,981

9,556

10,852

9,443

12,896

11,242

12,767

11,110

Earnings per share (kobo) - Basic

45k

39k

44k

39k

Earnings per share (kobo) - diluted

45k

39k

44k

39k

December 2021

December 2020

December 2021

December 2020

NPL Ratio

0.71%

1.90%

0.71%

1.90%

2

Sterling Bank Plc and Subsidiary

Condensed Interim Financial Statements for the Year Ended 31 December 2021

Directors who served during the period

The following Directors served during the period under review:

Name

Designation

Date appointed

Interest represented

/resigned

1

Mr. Asue Ighodalo

Chairman

Moehi Nigeria Limited

2

Dr. (Mrs.) Omolara Akanji

Independent Director

3

Mr. Michael Ajukwu

Independent Director

4

Mr. Olaitan Kajero

Non-Executive Director

STB Building Society Limited

Eltees Properties

Rebounds Integrated Services Limited

5

Mrs. Tairat Tijani

Non-Executive Director

Ess-ay Investment Limited

6

Mr. Michael Jituboh

Non-Executive Director

Dr. Mike Adenuga

7

Mr. Ankala Prasad (Indian)

Non-Executive Director

State Bank of India

Alfanoma Nigeria Limited

8

Mrs. Folasade Kilaso

Non-Executive Director

Plural Limited

Reduvita Limited

Quakers Integrated Services Limited

Concept Features Limited

9

Mr. Paritosh Tripathi (Indian)

Non-Executive Director

State Bank of India

10

Mr. Abubakar Suleiman

Managing Director/CEO

11

Mr. Yemi Odubiyi

Executive Director

12

Mr. Emefienim Emmanuel

Executive Director

13

Mr. Tunde Adeola

Executive Director

14

Mr. Raheem Owodeyi

Executive Director

Going Concern

The Directors assess the Group and the Bank's future performance and financial position on an on-going basis and have no reason to believe that the Group will not be a going concern in the year ahead. For this reason, these financial statements are prepared on a going concern basis.

Directors interests in shares

Interest of Directors in the issued share capital of the Bank as recorded in the Register of members and/or as notified by them for the purpose of section 301 of the Companies and Allied Matters Act 2020 were as follows:

Number of shares

December 2021

December 2021

December 2020

December 2020

Names

Direct

Indirect

Direct

Indirect

1

Mr. Asue Ighodalo

-

62,645,242

-

62,645,242

2

Mr Michael Jituboh

-

1,620,376,969

-

1,620,376,969

3

Dr. (Mrs) Omolara Akanji

-

-

-

-

4

Mr. Michael Ajukwu

-

-

-

-

5

Mr. Olaitan Kajero

-

1,592,555,294

-

1,547,951,251

6

Mrs. Tairat Tijani

-

1,444,057,327

-

1,144,046,801

7

Mrs. Folasade Kilaso

-

1,440,337,670

-

1,440,337,670

8

Mr. Abubakar Suleiman

47,325,727

-

47,325,727

-

9

Mr. Yemi Odubiyi

26,471,708

-

26,471,708

-

10

Mr. Emefienim Emmanuel

20,527,369

-

20,527,369

-

11

Mr. Tunde Adeola

27,244,025

-

26,653,041

-

12

Mr. Raheem Owodeyi

15,733,951

-

15,005,219

-

13

Mr. Ankala Prasad

-

2,549,505,026

-

-

14

Mr. Paritosh Tripathi

-

-

-

-

3

Sterling Bank Plc and Subsidiary

Condensed Interim Financial Statements for the Year Ended 31 December 2021

Analysis of shareholding

The range analysis of the distribution of the shares of the Bank as at 31 December 2021 is as follows:

Range of shares

Number

%

Number

%

of holders

of units

1

-

1,000

32,327

36.67%

14,488,737

0.05%

1001

-

5,000

26,014

29.51%

58,707,203

0.20%

5,001

-

10,000

8,847

10.03%

59,850,798

0.21%

10,001

-

20,000

7,026

7.97%

95,116,794

0.33%

20,001

-

50,000

5,104

5.79%

160,129,490

0.56%

50,001

-

100,000

3,245

3.68%

225,426,498

0.78%

100,001

-

200,000

2,361

2.68%

339,313,649

1.18%

200,001

-

500,000

1,794

2.03%

566,803,935

1.97%

500,001

-

10,000,000

1,337

1.52%

2,061,654,715

7.16%

Above 10,000,001

107

0.12%

14,759,723,517

51.27%

Foreign shareholding

4

0.00%

10,449,202,790

36.29%

88,166

100%

28,790,418,126

100.00%

The following shareholders have shareholdings of 5% and above as at 31 December 2021:

December 2021

December 2021

December 2020

December 2020

Holding (units)

% holding

Holding (units)

% holding

Silverlake Investment Limited

7,197,604,531

25.00

7,197,604,531

25.00

State Bank of India

2,549,505,026

8.86

2,549,505,026

8.86

Dr. Mike Adenuga

1,620,376,969

5.63

1,620,376,969

5.63

Ess-ay Investments Limited

1,444,057,327

5.02

1,444,046,801

5.02

Acquisition of own shares

The Bank did not acquire any of its shares during the year ended 31 December 2021 (31 December, 2020: Nil).

Property, plant and equipment

Information relating to changes in property, plant and equipment is given in Note 25 to the consolidated and separate financial statements.

Employment and employees

  • Employment of disabled persons
    The Bank has a non-discriminatory policy on recruitment. Applications would always be welcomed from suitably qualified disabled persons and are reviewed strictly on qualification. The Bank's policy is that the highest qualified and most experienced persons are recruited for appropriate job levels irrespective of an applicant's state of origin, ethnicity, religion or physical condition.
  1. Health, safety and welfare of employees
    Health and safety regulations are in force within the Bank's premises and employees are aware of existing regulations. The Bank provides subsidies to all levels of employees for medical expenses, transportation, housing, lunch etc.
  2. Employee training and development
    The Bank is committed to keeping employees fully informed as much as possible regarding the Bank's performance and progress and seeking their opinion where practicable on matters, which particularly affect them as employees.
    Training is carried out at various levels through both in-house and external courses. Incentive schemes designed to encourage the involvement of employees in the Bank's performance are implemented whenever appropriate.
  3. Events after reporting date
    There were no events after the reporting date which could have had a material effect on the state of affairs of the Bank as at 31 December 2021 or the profit for the year ended on that date which have not been adequately provided for or disclosed.
    BY ORDER OF THE BOARD:
    Temitayo Adegoke Company Secretary FRC/2018/NBA/00000018142 20 Marina, Lagos, Nigeria. January 28, 2022

4

Sterling Bank Plc and Subsidiary

Condensed Interim Financial Statements for the Year Ended 31 December 2021

Shareholding Structure/ Free Float Status

For the year ended 31 December 2021

31-December-2021

31-December-2020

Description

Unit

Percentage

Unit

Percentage

Issued Share Capital

28,790,418,126

100%

28,790,418,126

100%

Substantial Shareholdings (5% and above)

Silverlake Investment Limited

7,197,604,531

25.00%

7,197,604,531

25.00%

State Bank of India

2,549,505,026

8.86%

2,549,505,026

8.86%

Mike Adenuga

1,620,376,969

5.63%

1,620,376,969

5.63%

Ess-ay Investments Ltd

1,444,057,327

5.02%

1,444,046,801

5.02%

Total Substantial Shareholdings

12,811,543,853

44.51%

12,811,533,327

44.51%

Director's Shareholdings (Direct, and Indirect), excluding directors with substantial interests

Mr Asue Ighodalo (Indirect)

62,645,242

0.22%

62,645,242

0.22%

Mrs Folasade Kilaso (Indirect)

-

-

-

0.00%

Mr. Ankala Prasad (Indirect)

-

-

-

0.00%

Mrs. Tairat Tijani (Indirect)

-

-

-

0.00%

Olaitan Kajero (Indirect)

-

0.00%

-

0.00%

Mr Tunde Adeola (Direct)

27,244,025.00

0.09%

26,653,041.00

0.09%

Mr Abubakar Suleiman (Direct)

47,325,727.00

0.16%

47,325,727.00

0.16%

Mr Michael Jituboh (Indirect)

-

0.00%

-

0.00%

Dr. (Mrs) Omolara Akanji

-

0.00%

-

0.00%

Mr. Paritosh Tripathi

-

0.00%

-

0.00%

Mr Yemi Odubiyi (Direct)

26,471,708.00

0.09%

26,471,708.00

0.09%

Mr Emmanuel Emefienim (Direct)

20,527,369.00

0.07%

20,527,369.00

0.07%

Mr Michael Ajukwu

-

0.00%

-

0.00%

Mr Raheem Owodeyi (Direct)

15,733,951

0.05%

15,005,219

0.05%

Total Directors Shareholdings

199,948,022

0.69%

198,628,306

0.69%

Other Influential Shareholdings

Hak Air Limited,

968,205,643

3.36%

968,205,643

3.36%

Hyers Capital Limited

575,808,362

2.00%

575,808,362

2.00%

Pacific Credit Limited,

554,273,018

1.93%

554,273,018

1.93%

ACML Nominee 003

513,954,583

1.79%

513,954,583

1.79%

Adeola Tajudeen Afolabi

504,035,555

1.75%

446,824,745

1.55%

Festus Alani Fadeyi

480,449,895

1.67%

480,449,895

1.67%

Rankinton Investments Inc.

702,093,233

2.44%

477,367,650

1.66%

Skyview Capital Limited

328,124,965

1.14%

428,301,886

1.49%

Glomobile Limited,

354,458,383

1.23%

354,458,383

1.23%

Kogi United Co. Nig. Ltd

346,835,811

1.20%

346,835,811

1.20%

AX SCML Nominees

339,181,010

1.18%

316,388,117

1.10%

Sterling Bank Co-operative Multipurpose

Society Limited

751,750,014

2.61%

879,703,214

3.06%

Total other Influential Shareholdings

6,419,170,472

22.30%

6,342,571,307

22.03%

Free Float in Units and Percentage

9,361,075,495

32.51%

9,437,674,660

32.77%

Free Float in Value

N14,135,223,997.45

N19,252,856,306.40

Declaration:

  1. Sterling Bank Plc with a free float percentage of 32.51% as at 31 December 2021, is compliant with The Exchange' free float requirements for companies listed on the Main Board.
  2. Sterling Bank Plc with a free float value of N19,252,856,306.40 as at 31 December 2020, is compliant with The Exchange's free float requirements for companies listed on the Main Board.

5

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Sterling Bank plc published this content on 29 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 January 2022 15:50:08 UTC.