Sterling Bank Plc’s shares were the
toast of the stock market on Tuesday, as investors rallied the lender’s
clarification over the recent issue involving the institution and the
Economic and Financial Crimes Commission (EFCC).
In a statement to the Nigerian Stock Exchange (NSE), Sterling Bank
affirmed that it did not hold account for “the public officer from the
previous administration to which this matter (EFCC visit to the bank)
has been linked either officially or otherwise”.
Some reports – most especially online,
had linked last week investigative visit by the EFCC to the bank to the
slush political dealings involving former Minister of Petroleum
Resources,
Mrs Diezani Alison-Madueke, generally known as Diezanigate.
EFCC had also been investigating diversion of arms funds, otherwise
known as Dasukigate, named after the former National Security Adviser,
Col. Sambo Dasuki (rtd).
Sterling Bank explained that while the
reason for the visit by the EFCC last Wednesday was not immediately
clear, it has now been confirmed that the investigation is related to
the banking relationship of a non-bank financial institution that is a
client of Sterling Bank Plc.
“We affirm for the public records that
the bank does not hold the account of the public officer from the
previous administration to which this matter has been linked either
officially or otherwise; the non-bank financial institution (Asset
Management Company) in question purchased a number of loans on a
recourse basis from Sterling Bank Plc on commercially acceptable terms
and this is the link of the concern raised by the EFCC to Sterling Bank
Plc,” Sterling Bank stated.
The lender’s share price rose by 4.91
per cent yesterday, the eighth highest percentage gain within the
five-hour trading session. Sterling Bank’s share price closed at N1.71.
The gain by Sterling Bank helped the banking sector to a positive close
in a market overwhelmed by losses by several highly capitalised stocks.
Analysts at Afrinvest Securities stated
that the gains by Sterling Bank and two other banks-Diamond Bank and
Zenith Bank, were largely responsible for the extended bullish run of
the NSE Banking Index, which rose by 0.6 per cent.
Meanwhile, Sterling Bank according to the statement to the local bourse,
gave assurance to the investing public that it had commissioned a
review of the compliance procedures of its non–bank financial
institution clients with the aim of strengthening this area of its
operations while in the interim, the bank will not accept any new
non-bank financial institution relationships.
“We thank our numerous partners for their support and assure you that
the bank remains a compliant institution that continues to conduct its
business within the ambit of the law,” Sterling Bank stated.
By Nume Ekeghe/Thisday
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