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Sterling Bank Plc announced on Thursday, April 6, 2023, that it had completed an essential step in its ongoing efforts to shift from a financial institution to a holding company.
The bank said the move is in line with the delisting, transfer, and relisting of all shares to the Sterling Financial Holding Company on the floor of the Nigerian Exchange.
Sterling Bank to operate two banks, unveil new names
Per a statement by the firm, the relisting shows another significant development in the ongoing transition, which the bank’s shareholders unanimously approve.
As ratified by the Nigerian Exchange, the bank stated that this move follows approval in principle for it to operate as a Holding Company by the Central Bank of Nigeria (CBN).
The bank will convert to a non-operating financial holding firm as approved by the Central Bank of Nigeria (CBN) and is expected to enable it to diversify its investment portfolio, expanding its presence in the financial markets.
It said the relisting on NGX represents a critical move as it continues to accelerate and position itself for long-term success.
Punch reports that upon completion of the transition, Sterling Holdings Company would begin operations with two banking subsidiaries, one operating as a conventional commercial bank and the other as the Alternative Bank Limited, which will operate as a non-interest bank.
Sterling becomes part of banks operating as holding firms
With the move, the bank joins the league of other banks in Nigeria seeking to become holding companies.
Other banks operating as holding companies in Nigeria include FBN Holding Company, Guaranty Holding Company, FCMB Holding Company, and Access Holding Company, among others.
Holding companies exist to buy and control other companies to make profits.
Zenith Bank gets CBN’s approval to join other financial institutions operating as holding companies in Nigeria
It was earlier reported that Zenith Bank had received approval in principle from the Central Bank of Nigeria to restructure and operate as a financial holding company.
The company revealed plans to change its organizational structure in a statement signed by the Company Secretary, Michael Otu, on Friday, March 3, 2023, and submitted to the Nigerian Exchange.
With this change, the organization will have a banking subsidiary and other subsidiaries in the financial services sector.
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