Sterling Bank

By Moses Uwagbale

Sterling Bank’s lending platform, “Specta”, has created a digital credit solution known as “PayWithSpecta”.

The new solution allows customers to pay for goods in installments, while merchants are credited instantly thereby helping businesses increase sales, a statement by the bank said on Wednesday.

Mr Shina Atilola, Divisional Head, Retail and Consumer Banking, Sterling Bank,   said  the new product would enable customers   buy goods from merchants in-store and from online platforms on credit.

“Customers can assess their credit limits via the PayWithSpecta platform (www.paywithspecta.com), use their limits at   merchant stores  and even access 30 per cent of the limit as cash.

“This will enable customers spread payment up to 12 months while the merchant gets his payments upfront,” Atilola said in the statement.

He said that for customers to sign up, they would need to provide their basic information and after signing up, an instant credit decision would be received within five minutes.

According to him, the website will then generate a Specta ID for the customer which he will need to provide at any of the bank’s partner stores (online or in-store) to conclude a purchase with a spending limit.

Atilola explained that the credit/spending limit would be valid for three months and could still be renewed if not utilised; adding that no charges would be applied for unutilised spending limits.

Furthermore, he said that PaywithSpecta would provide more convenience with lending to the customer and would also give access to 30 per cent of the credit limit as cash.

He urged business owners to visit the PayWithSpecta website to sign up to start receiving payments from consumers as this would significantly increase revenue for their businesses.

Atilola also advised customers to use PayWithSpecta for their shopping using their Specta ID, which according to him, is the smartest way available in Nigeria to make purchases.

“PayWithSpecta offers digital credit limits to customers to purchase items in-store at merchant locations or from merchant online platforms.

“It also gives merchants the opportunity to access credit for their business activities.

“Consumers can make purchases at zero percent interest rate at designated stores for those who choose 30 to 90 days repayment tenor.

“And as low as 1.75 per cent monthly for tenors of 7 to 12 months repayment tenor,’’ he said.

By Moses Uwagbale

Sterling Bank has reported a trading income of N7.1 billion for the third quarter (Q3) ended Sept. 30, compared with N1.9 billion achieved in the corresponding period in 2019, notwithstanding the uncertainties caused by the COVID-19 pandemic and recent fiscal reforms by government

Mr Abubakar Suleiman, Managing Director and Chief Executive Officer of the bank, said in a statement, in Lagos, that the growth represented a 264.7 per cent increase.

Suleiman said that the bank achieved the remarkable performance in spite of the prevailing uncertainties that characterized the macro-economic environment due to the COVID-19 pandemic and the attendant fiscal reforms by the Federal Government.

The bank’s profit after tax dropped to N7.36 billion during the period under review as against N7.57 billion recorded in the corresponding period in 2019, just as gross earnings also fell to N106.07 billion during the period under review, against N109.7 billion achieved last year.

According to him, with economic activity picking up in the third quarter, following the gradual ease in the nationwide lockdown, the bank would continue to leverage on existing remote work policy to enhance workforce productivity and ensure uninterrupted service delivery to both new and existing customers.

“Our performance continues to reflect positive results of strategic decisions and investments in our focal areas as we continue to record significant improvement in both funding and operational costs.

“Overall, we delivered a 7.2 per cent increase in operating income and a profit after tax of N7.37 billion despite prevailing uncertainties around the COVID-19 pandemic and recent fiscal reforms.

The CEO said a 26.2 per cent dip in fee income caused by the downward review of electronic banking fees coupled with slower loan origination, due to the protracted lock down, was moderated by a 264.7 per cent spike in trading income.

“Growth in balance sheet was driven by a 26.5 per cent growth in low cost funds, which saw the bank’s CASA mix improve to 71 per cent from 60 per cent, delivering a 6.6 per cent growth in customer deposits.

“Our cash and short-term balances increased in line with the higher regulatory reserves, while interest income also declined by 6.7 per cent, which was offset by a 17.0 per cent decline in interest expense. This delivered a 120-bps drop in cost of funds and, consequently, a 100-bps increase in net interest margin,” he said.

In terms of asset quality, Suleiman noted: “We proactively increased our cost of risk by 100 bps to 1.9 per cent, while recording a marginal increase in NPL ratio to 2.9per cent, well below our target of 5 per cent.

He explained that the decline in OPEX was achieved by moderating administrative expenses despite growth in other operating expenses, including AMCON and insurance fees

The CEO said that the bank was also able to maintain a strong capital and liquidity position of 16.1 per cent and 32.5 per cent respectively, above regulatory benchmark.

By Moses Uwagbale 

Sterling Bank has launched a new product, Sterling Women and Youths in Agriculture Finance code (SWAY-AgFin), to provide low-cost financing at single-digit rates to young men and women entrepreneurs in the agribusiness value chain across the country. 

Mrs Bukola Awosanya, the Group Head, Agric Finance and Solid Minerals Financing for Sterling Bank, said in a statement in Lagos that SWAY-AgFin was designed by the Bank, in collaboration with MasterCard Foundation. 

She said that the facility, which aimed to grow agribusinesses in Nigeria with an overall focus to impact local production, improve employability for young entrepreneurs, and ultimately grow the economy, has a maximum tenor of two years. 

Awosanya said that the SWAY-AgFin was also available to entrepreneurs seeking to scale the output of their agribusiness offerings. 

According to her, the opportunity will equip beneficiaries with the requisite knowledge and skills in financial management and good agricultural practices, while generating direct and indirect employment. 

She also said that the SWAY-AgFin offering was a testament of the Bank’s continued commitment to agribusiness financing, noting that Sterling Bank’s various interventions within the sector “have been made possible with the support of partners such as the MasterCard Foundation.” 

“SWAY AgFin has become imperative because the effect of disruptions caused by the coronavirus pandemic has not only restricted access to sufficient and nutritious sources of food, but has also slowed down cash flow to farmers and food suppliers. 

“There has also been a shortage of labour for production, harvest, and post-harvest activities. All of these have resulted in higher costs of food prices and disruptions in crop production cycles. 

“The supply and distribution of agricultural inputs, such as improved seeds, herbicides, and fertilizers to rural farming communities have been severely hindered in the wake of the pandemic. 

” Linkages between major cities in the various states in Nigeria have become difficult as harvested produce cannot reach markets and this has discouraged farmers from engaging in crop cultivation, leading to less production and shortages of staples,” she said. 

The Group Head said that the product would help increase productivity in the agribusiness sector, while easing the devastating effects of the pandemic on the lives of youths and women. 

Awosanya said that MasterCard Foundation’s involvement underscored the commitment of the two organizations to the growth of critical sectors in the Nigerian economy. 

She said: “The offering, therefore, targets youths and women who are involved in all levels in the agricultural value chain, inclusive of small-holder farmers who usually operate on one or two hectares, processors, input providers, and small-scale processors/SMEs whose businesses require cost-effective financing to help scale”. 

By Tanko Mohammed

Sterling Bank. has obtained Central Bank of Nigeria’s approval in principle to restructure as a holding company.

The bank’s Chief Executive Officer, Mr Abubakar Suleiman, disclosed this in a statement posted on the Nigerian Stock Exchange website.

Suleiman said the bank’s desire to operate as a holding company was driven by its plan to spin off its non-interest banking window which became operational in January 2014 into an autonomous entity.

He said that the proposed structure would support the individual businesses in reaching full potential through increased portfolio diversification, improved efficiency and enhanced corporate governance.

“Going into the holding company structure, our desire is to entrench our business model premised on social capitalism where we believe that private sector capital and market-based tools will offer the best types of solutions to Nigeria’s most pressing social and environmental challenges.

“The holding company gives us the structure to explore our business model further,” he said.

According to him, the holding company will operate on three major premises – specialisation, partnership and digitisation.

He said that the conventional bank would focus on building skills and using technology to provide solutions in the areas  critical to development in the country – Health, Education, Agriculture, Renewable Energy, Transportation (HEART).

“The non-interest bank will focus on building partnerships that connect individuals and businesses, leveraging technology to create business optimisation while solving an individual’s daily financial needs.

“The overall business will focus on social impact, corporate responsibility and religious compliance in its dealings.

“Our digitisation drive will create an enabling environment for both financial institutions to grow while providing services and support to build efficiencies in different ecosystems,” he said.

Suleiman said that  execution of the organisation’s plans was fully dependent on our interwoven operating model of agility, specialisation and digitisation.

“Essentially, for us to be successful, we require people who are adaptable and knowledgeable running processes that are simple, quick and tech-led to ensure efficiency,” Suleiman added.

He said that the bank was in the process of meeting the conditions for the final approval.