Shareholders Commend Sterling HoldCo’s Performance, Leadership

The board and management of Sterling Financial Holdings firm Plc have received praise from the firm’s shareholders for the company’s performance in terms of operations and profitability as well as the diversification of the group’s business lines following the completion of the transition to a holding company structure.

This commendation was offered at the just concluded statutory meeting in Lagos, which was attended both in person and virtually. There, shareholders overwhelmingly approved the day’s single resolution, which was the adoption of the statutory report for the meeting.

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In his address to the company’s shareholders, Chairman of the Board Yemi Adeola expressed gratitude for their support throughout the company’s successful transition to a financial holding company, emphasising the role that Sterling HoldCo’s ethical banking subsidiary, The Alternative Bank, has played in boosting shareholder value.

Also in attendance at the meeting, Group CEO of Sterling Financial Holdings Company, Yemi Odubiyi, addressed the opportunities the transformation presents with the potential diversification into other business lines along with the commercial and ethical banking licenses operated by the company.

During the meeting, Dr. Umar Faruk, President of the Association for the Advancement of the Rights of Shareholders (AARNS), commended the company for its transition into a Holdco structure. He added that the change would enable Sterling to diversify its operations into other sectors of the Nigerian economy.

Faruk praised the group for the successful launch of The Alternative Bank (TAB) in Lagos, Abuja, and Kano, highlighting the potential profitability of the initiative as well as an appreciation of the board and management of the group for the appointment of Yemi Adeola as board chairman. He also noted Mr. Adeola’s significant contributions to the growth and development of Sterling Bank during his tenure as CEO, expressing confidence in the group’s continued growth trajectory under his leadership.

Faruk also expressed his gratitude to Alhaji Mustapha Jinadu, the Chairman of the Statutory Audit Committee, and Mrs. Temitayo Adegoke, the Company Secretary, for their efficient communication with shareholders regarding the group’s progress from the beginning to the end.

He concluded by saying that the shareholders were happy with the makeup of the board and that they hoped the board would help them advance the institution. He also mentioned that the transition had already paid off, as evidenced by the rise in the HoldCo’s share price on the Nigerian Exchange Limited (NGX).

Other shareholders who spoke at the meeting echoed Dr. Faruk’s remarks, with Mr. Matthew Akinlade stressing the importance of enhancing risk management practices, particularly with the emergence of more subsidiaries in the group; Mrs. Bisi Bakare Oluwayemisi spoke on the need for building resilience and diversifying earnings within the group, underscoring the robust nature of the Holdco structure; while Mr. Adeleke Adebayo encouraged the group to leverage the entire financial landscape to become a comprehensive financial services provider.

With the adoption of the Holdco structure now in full effect, Sterling now possesses the latitude to make inroads into other sectors within financial services, such as pensions, asset management, payment services, real estate, and different verticals, along with the current banking licenses held by the commercial and ethical banking subsidiaries; Sterling Bank and The Alternative Bank, which will operate as limited liability companies within the publicly traded holding company.

A holding company, or Holdco, is a company set up to make and manage, for its account, equity investments in two or more companies, which are its subsidiaries, engaged in the provision of financial services, one of which must be a bank.