Directors at Sterling Financial Holdings Company Plc, along with its subsidiary, Sterling Bank Limited, have recently elevated their shareholding through substantial acquisitions of shares. The period between August 3 and 11, 2023, saw the purchase of 229.965 million units of Sterling Financial Holdings Company Plc shares, with a combined value of N262.5 million. These transactions were disclosed through notifications of insider share dealings.Thank you for reading this post, don't forget to subscribe!
Despite an array of banking stocks, Sterling’s shares have displayed remarkable growth, surging by 157.1 percent this year alone. As of August 14, the company’s share price closed at N3.60.
Among the notable purchases, Yemi Odubiyi, MD/CEO of Sterling Financial Holdings Company Plc, procured 17.5 million units of the company’s shares at N3.75 per share, amounting to a total of N65.625 million. Abubakar Suleiman, Non-Executive Director of Sterling Financial Holdings Company Plc and MD/CEO of Sterling Bank Limited, acquired 23.1 million shares at the same price, equivalent to N86.625 million. Executive Director of Sterling Bank Limited, Raheem Owodeyi, bought 14.7 million units of shares at N3.75 per share, worth N55.125 million. Additionally, Tunde Adeola, Executive Director of Sterling Bank Limited, purchased 14.7 million units at N3.75 per share, translating to a value of N55.125 million.
A closer examination of the directors’ dealings reveals that Abubakar Suleiman purchased 50 million units of shares at N3.36 per share on August 3, amounting to N168 million. On August 9, Tunde Adeola bought 9.965 million units at N3.47 per share, valuing the deal at N34.57 million. Yemi Odubiyi made three separate purchases between August 7 and 9, amassing 100 million units at N3.54 per share, with a total deal worth N354 million.
The interim financial statements for the period ending June 30, 2023, indicate growth for Sterling Financial Holdings Company Plc. Gross earnings escalated to N99.060 billion in H1 2023 from N78.381 billion in H1 2022. Notably, profit before tax (PBT) rose to N11.458 billion in H1 2023 from N8.619 billion in H1 2022, while profit after tax (PAT) stood at N10.680 billion in H1 2023, compared to N8.013 billion in H1 2022. Basic earnings per share increased to 37 kobo in H1 2023 from 28 kobo in H1 2022. The Non-Performing Loan (NPL) ratio decreased to 3.16 percent in H1 2023 from 3.88 percent by the end of December 31, 2022.
Notable shareholders with ownership exceeding 5 percent as of June 30, 2023, include Silverlake Investment Limited (25 percent), State Bank of India (8.86 percent), Mike Adenuga (5.63 percent), and Ess-ay Investments Limited (5.08 percent).
As of June 30, 2023, Sterling Financial Holdings Company Plc maintained a free float percentage of 35 percent, in compliance with exchange requirements for Main Board-listed companies. Similarly, Sterling Bank Plc complied with the Exchange’s requirements for free float values of N16.259 billion as of June 30, 2022. The transfer of Sterling Bank’s shares to Sterling Financial Holdings Company Plc rendered Holdco the exclusive shareholder of Sterling Bank. On April 6, 2023, Sterling Bank’s shares were delisted from the Nigerian Exchange Limited (NGX), while the shares of Holdco were listed. Sterling Bank was re-registered as a private company on May 5, 2023, following its Annual General Meeting on May 31, 2023, which saw the payment of a declared dividend of 15 kobo per ordinary share of 50 kobo each to Sterling Financial Holdings Company Plc.