Ster­ling Bank Records N57bn Gross Earn­ings, N4bn Profit After Tax

THISDAY - - MARKET NEWS - Goddy Egene

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.

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