STB Increases Stock Market Value by N24.2bn
By Uche Obike
The listing of of 6.0 billion ordinary shares of Standard Trust Bank Plc (STB) at the weekend boosted the market capitalisation of the Nigerian Stock Exchange (NSE) by N24.2 billion.
The Exchange listed the 6.0 billion ordinary shares of 50 kobo at N4.0 per share. This brought to 30 and 201 the number of equities listed in the banking subsector and the Stock Exchange, respectively.
This event marks an important milestone in the history of our bank and its industry. It is also a testimony to the relentless drive of the NSE to broaden the number of quoted companies.
Addressing market operators on the current performance of the bank and its future projections, the Managing Director/Chief Executive Officer, Mr. Tony O. Elumelu explained that the listing of STB's shares on the stock exchange was a historic moment that represented a culmination of the untiring efforts and dedication of the management and staff of Standard Trust Bank towards ensuring the growth and prosperity of their enterprise.
Elumelu said that the bank's offer was made to position it as a well capitalised institution that is ready to take advantage of dynamic changes in a deregulated and competitive operating terrain.
He also revealed that the bank desired to democratise its ownership base by inviting the investing public and customers alike to participate in its equity, as this remains a veritable means of deepening already strong
relationships.
The STB's added that the bank wanted to prosecute its retail play via the establishment of multiple touch points, while it planned to expand its Information Technology (IT) infrastructure to cater for its over one million customer base that is still growing. He noted further that the bank needed to increase its working capital to support its appointment as a Settlement Bank by the Central Bank of Nigeria, while it needed to further train and equip its human capital with requisite skills that will support the enlarged scope and scale of
operations that the bank is experiencing.
He expressed satisfaction over the level of public confidence reposed in the bank as manifested by the 254 per cent subscription level of the lnitial Public Offer (IPO).
"This level of over-subscription is not common in the history of the capital market," he said.
He assured operators that the bank is committed to:
�The highest and purest form of ethical standard that is expected of a public trust
�Maximising shareholders value by means of purposeful and pragmatic leadership
Elumelu commended the over sixty thousand investors who subscribed to the shares that were listed last Friday, adding that the bank's projected earnings per share (EPS) would be 66 kobo and 85 kobo for 2004 and 2005 financial years, while dividend per share (DPS) would be 20 kobo and 25 kobo for the same period.
He promised that they will ensure that the bank meets and exceeds these projections and continues to yield above-average returns in the foreseeable future.
"In 7 years, we have grown our bank from a negative shareholders fund to over N17.3b in shareholders funds.
According to him, the bank has further fashioned out a number of initiatives in its SSP - Standard Trust Strategy Plan leading up to 2007 - that will ensure that the shares listed on Friday will always be the toast of discerning investors.
Some of these initiatives are anchored on strong principles of accessibility as the intensifies its retail play by opening additional 150 branches in the next 30 months.
Other strategic initiative by the bank include:
ATMs: We are in conjunction with First Bank Plc, Union Bank of Nigeria, United Bank for Africa and five other banks pioneering the ATM Consortium that is projected to roll out 1500 ATM over the next 12 months.
Call Centres; We are setting up Call Centres to further serve our customers
Service Centres: We are setting up Service Centres to decongest banking halls as well as create maximum convenience for customers.
Simplicity
Improved operating efficiency
Superior service delivery
Convenience in all our relationships
Pioneering improved payment systems
Agility
The bank has restructured to be able to respond and adapt easily to emerging opportunities in the marketplace.
The bank, which was incorporated in Nigeria as private limited liability company on March 15, 1990, obtained its license to operate as a commercial bank on March 5, 1990. It commenced business on June 4, 1990. It was restructured on July 30, 1997 and the name was changed from Crystal Bank of Africa Limited to Standard Trust Bank Limited. The bank recently got converted to a Public Limited Liability Company (PLC) following members' resolution to that effect at Extra- ordinary General Meeting held on July, 2002.
The bank is engaged in commercial banking business. It obtained its banking license to operate as a universal bank on February 9, 2001, from CBN.
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