By Niyi Jacobs
Despite announcing a massive N75bn capital raise on September 18, 2024, Sterling Bank’s year-to-date (YTD) returns have continued to plummet, falling to -37.73%. This has raised concerns among investors and analysts, who are questioning the effectiveness of the capital injection.
Meanwhile, Stanbic IBTC’s YTD returns have also taken a hit, declining to -18.16%. This is a surprising turn of events, considering the bank’s strong performance in recent years.
On the other hand, GTCO, FBNH, and ETI have seen their YTD returns rise to 17.28%, 16.77%, and 14.83%, respectively. Fidelity and Wema Bank have led the pack, with YTD returns of 25.35% and 21.43%, respectively.
The NGX-Banking Index has also seen a slight increase, rising 1.26% week on week (W-o-W) to close at 911.43. However, this has not been enough to boost Sterling Bank and Stanbic IBTC’s YTD returns.
Analysts are now watching Sterling Bank closely, wondering if the capital raise will be enough to turn around the bank’s fortunes. The regulators are said to be in the final stages of approval for the capital raise, which was achieved through a private placement from a consortium of domestic investors and ultra-high-net-worth groups in Lagos.
Other stories in the material:
- Sterling Bank announces N75bn capital raise through private placement
- NGX-Banking Index rises 1.26% W-o-W to close at 911.43
- GTCO, FBNH, and ETI’s YTD returns rise to 17.28%, 16.77%, and 14.83%, respectively
- Fidelity and Wema Bank lead with YTD returns of 25.35% and 21.43%, respectively
- Sterling and Stanbic’s YTD returns fall to -37.73% and -18.16%, respectively
