Adeola: Sterling Bank Will Grow Retail Business

The Managing Director/ Chief Executive of Sterling Bank Plc, Mr. Yemi Adeola, has said that the bank will aggressively grow its retail business through electronic channels over the next five years.

Speaking at the bank’s annual general meeting (AGM) in Lagos last Thursday, Adeola also told the shareholders that the bank would continue to boost innovative banking, driven by market insights that would enable it serve its customers satisfactorily; implement significant investment in technologyled growth initiatives and accelerate the growth of its non-interest banking segment.

Reviewing the economy in 2016, the Sterling Bank boss said: “2016 was a difficult year for the Nigerian economy as it was characterised by high inflation, weak oil prices, lower crude oil output and foreign exchange supply shortages. These multiple challenges and the various regulatory responses put significant downward pressure on the earnings of banks.”

According to him, in the face of these difficulties, the bank’s gross earnings grew for the sixth consecutive year to N111.4 billion.

“We also maintained our commitment to operating efficiency, as highlighted by an improvement in net interest margin to 9.3 per cent and a 22.5 per cent growth in interest income. In addition, we successfully limited the growth in operating expenses to 1.9 per cent despite the high inflationary environment,” he said.

Earlier in his address, Chairman of the bank, Mr. Asue Ighodalo reported that the bank recorded a profit after tax of N5.2 billion, from goss earnings of N111.4 billion for the financial year ended December 31, 2016.

He further stated that net interest income increased by 41.6 per cent to N56.0 billion as against N39.5 billion in 2015, due to a 22.5 per cent increase in interest income, while operating income was N68.3 billion. Operating expenses increased marginally to N50.6 billion from N49.7 billion in 2015, despite inflationary pressures; a reflection of the effectiveness of the bank’s strategic cost control measures.

Shareholders of the bank commended the bank’s board and management for reporting a profitable performance for the year ended December 31, 2016, despite the harsh macroeconomic environment that characterised the year under review.

For instance, the President of the Association for the Advancement of the Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar, congratulated the Sterling

Bank for winning the Agric Bank of the Year Award recently.