Sterling Bank, has gotten an Approval-in-Principle for a standalone license for its non-interest banking business, the proposed Alternative Bank Limited.
News of the approval put a break to a one month loss by its investors.
In the last one month, from November 10 to Tuesday, the total investment value of Sterling Bank’s investors had depreciated by 5.80 percent, losing N2.59 billion in the process.
The market value had dropped to N42.03 billion as of Tuesday, against the N44.63 billion on November 10, as the capital market priced Sterling Bank stock low, dragging it to N1.46kobo per share, from N1.55kobo.
The free fall ended on Wednesday, with the share value rising 2.05 percent as news broke that the DMB received approval from the Apex Bank to establish Alternative Bank Limited.
Sterling Bank is looking to branch out of its core interest-banking business to tap into other revenue creating market, a move that will improve investment value – hence, the bear sentiment going green on Wednesday.
The Bank’s management in a statement Commenting on the operation of Alternative Bank Limited, the lender stated that it will, “focus on building partnerships that connect individuals and businesses leveraging technology to create business optimization while solving an individual’s daily financial needs.
“The overall business will focus on social impact, corporate responsibility, and ensure religious compliance in all its dealings.” Sterling Bank said.
