The Managing Director/Chief Executive Officer of Sterling Bank Plc, Mr. Yemi Adeola, on Thursday said the bank would raise tier-2 debt capital of $200 million this year to boost the bank's operations and deliver higher returns to shareholders in the years ahead.

Speaking at the 53rd annual general meeting in Lagos, Adeola said the need to retain funds in the bank informed the N1.72 billion paid for the year ended December 31, 2014.

According to him, it will not be a good decision to pay high dividends to shareholders one year and come back to the same shareholders for money the same year.

"When we did not need much capital we paid a dividend of 25 kobo  per share in 2013 and when we needed capital, we reduced the dividend in 2014. This year, we will be raising $200 million  seven year tier-2  debt capital to enable us  make more money for our shareholders," he said.

Speaking on the performance of the bank for 2014 financial year, Adeola, said it showed the strengths of its resilient growth model and ability to continue to deliver value for all stakeholders.

Adeola said that 2014 was a difficult year for the banking industry following multiple challenges arising from a weaker macroeconomic environment and various regulatory policies that impacted on the margins of banks.

“Despite these pressures, we achieved double-digit earnings growth in line with our medium-term strategic objectives," he said.

He said  the performance showed the strengths of its resilient growth model and ability to continue to deliver value for all stakeholders.

“Despite these pressures, we achieved double-digit earnings growth in line with our medium-term strategic objectives," he said.

According to him,  the bank posted gross earnings of N103.7 billion compared with N91.6 billion  recorded in   2013, an increase of 13 per cent. Profit before tax rose by 15.4 per cent to N10.7 billion against N7.5 billion posted in the preceding period of 2013. Net interest income rose by 20.1 per cent to N43.0 billion in contrast with N35.8 billion recorded in 2013. The bank's cost of funds dropped to 5.3 per cent from 6.1 per cent declared in 2013.

Net loans and advances increased by 15.4 per cent to N371.2 billion as against N321.7 billion in 2013.

Customer deposits rose by 15 per cent to N655.9 billion against N570.5 billion posted in the comparative period of 2013.

Also, shareholders’ funds increased by 33.5 per cent to N84.7 billion, from N63.5 billion in 2013.

Its total assets stood at N824.5 billion compared with N707.8 billion, representing an increase of 16.5 per cent.

Adeola assured that the bank would continue to deliver better values to all stakeholders given the steadiness of its strategic growth plan and its current strong balance sheet position.