Sterling Bank Records N57bn Gross Earnings, N4bn Profit After Tax
Sterling Bank Plc, has reported gross earnings of N57 billion for the half year ended June 30, 2017, representing a growth of 14 per cent over the corresponding period of 2016. Net interest income increased by 5.4 per cent to N27 billion, from against N25.6 billion. The bank reduced operating expenses by 1.6 per cent to N25.7 billion in 2016.
Sterling Bank Plc ended the period with profit before tax of N4.3 billion, down marginally from N4.0 billion, while profit after stood at N3.8 billion as against N4.0 billion in 2016.
A further analysis of the results showed that the bank’s loans and advances increased by 11.9 per cent to N524 billion from N468.3 billion in December 2016, while customer deposits increased by 4.2 per cent to N609 billion compared to N584.7 billion in December 2016. Shareholders’ funds also increased by 10.5 percent to N94.6 billion from N85.7 billion in December 2016, while total assets (excluding contingent liabilities) increased by 14.8 percent to N957.9 billion compared to N834.2 billion in December 2016.
Commenting on the results, Managing Director/Chief Executive of Sterling Bank Plc, Mr. Yemi Adeola said: “We continued to deliver strong top line earnings with a 14 percent growth in gross earnings arising from a 20 per cent increase in interest income,” adding that in a bid to re-affirm the bank’s commitment to building efficient operations, it recorded a 110 basis point improvement in cost-toincome ratio as a result of the reduction in operating expenses.”
Adeola remarked that the Bank maintained its global credit rating from Moody’s (B2) with a stable outlook as a result of a resilient deposit funding base and solid local currency liquidity buffers.
He attributed the rating re-affirmation to improvements in the bank’s IT infrastructure and risk management processes as well as a growing retail product suite.
On the prospect for the second half of the year, Adeola said the bank is committed to sustainable growth of its balance sheet and revenues in a cautious but optimistic manner, adding that risk asset growth strategy will remain focused primarily on the health, agriculture and education sectors.
According to him, the bank would also continue to drive its retail business aggressively using technology whilst remaining committed to superior service delivery and value creation for its stakeholders.