Sterling Bank Records N111bn Earnings, N6bn Profit
Sterling Bank Plc yesterday recorded gross earnings of N111.4 billion and profit before tax (PBT) of N6.0 billion for the year ended December 31, 2016. The PBT indicates a decline of 45 per cent compared with N11 billion in 2015. A further breakdown of results showed that net interest income increased by 41.6 per cent to N56 billion, from N39.5 billion in 2015 on account of a 22.5 per cent increase in interest income and a 4.2 per cent increase in interest expense.
Impairment charges rose from N8.151 billion to N11.714 billion as loans and advances increased by 38.2 per cent to N468.2 billion from N338.7 billion in 2015. The loans were driven primarily by foreign exchange revaluation.
However, customer deposits decreased marginally by 1.0 per cent to N584.7 billion, from N590.9 billion. Total assets (excluding contingent liabilities) increased by 4.3 per cent to N834.2 billion compared with N799.5 billion the previous year.
Commenting on the results, Managing Director/Chief Executive Officer of the bank, Mr. Yemi Adeola said 2016 was a difficult year for the Nigerian economy characterised by high inflation, weak oil prices, lower crude oil output and foreign exchange supply shortages.
According to him, these multiple challenges and the various regulatory responses put significant downward pressure on the earnings of banks.
Adeola noted that during the year, the bank successfully deployed the “best in class” core banking application - Temenos T24; grew its active customer base and launched the disruptive, award winning payments solution, ChatPay, as the bank optimised its traditional electronic channel offerings.
He explained that these initiatives would enable the bank to optimize its operating efficiency and position it to exploit emerging business opportunities.
Speaking on the outlook for Sterling Bank under its 2017- 21 Strategic Plan, the MD/CEO said it is expected that the government’s fiscal intervention schemes alongside supportive economic policies will create pathways for economic recovery.
“Over the next five years, we will be steering our ship differently and aggressively growing the retail business through electronic channels,” he said.
Adeola said in a bid to achieve this, the bank would prioritise efficiency over scale with the goal of achieving steady growth and sustainable returns to all our stakeholders and optimize its cost profile while providing its customers with ‘best in class’ service.