Sterling Bank Records N6bn Profit as Gross Earnings Hit N97bn

Sterling Bank Plc has recorded sustained growth posting gross earnings of N94.6 billion for the nine months ended September 30, 2017, showing an increase of 19 per cent above N79.7 billion in the corresponding period of 2016. Non-interest income grew by 48.9 percent to N16.0 billion as against N10.8 billion in 2016.

Further analysis showed that net operating income increased by 0.5 per cent to N45.3 billion compared with N45.1 billion in 2016. Operating expenses, however, moderated by 0.6 per cent to N38.8 billion as against N39 billion in 2016.

Profit before tax rose by 8.1 per cent to N6.6 billion, up from N6.1 billion in 2016 while profit after tax also appreciated by 7.3 per cent to close the quarter at N5.9 billion compared with N5.5 billion in 2016.

The bank’s financial ratios showed pre-tax return on average equity of 9.6 per cent compared with 9.1 per cent in 2016, post tax return on average equity was 8.6 per cent as against 8.3 per cent in 2016 while earnings per share rose to 21 kobo in 2017 from 19 kobo in 2016. Sterling Bank’s non-performing loan ratio dropped to 6.1 per cent in 2017 from 9.9 percent in 2016, while capital adequacy ratio increased to 11.4 per cent in 2017 from 11.2 percent in 2016. Shareholders’ funds rose by 13.6 per cent to N97.3 billion as against N85.7billion in 2016 while total assets, excluding contingent liabilities, increased by 15.2 per cent to N961 billion against N834.2 billion in 2016.

Speaking on the results, Managing Director/CEO, Mr. Yemi Adeola, said: “In the third quarter, the bank sustained its earnings growth momentum with an 18.8 per cent growth in gross earnings boosted by a 48.9 per cent increase in non-interest income.”

According to him, the bank’s strategy built on efficient operations balance and sustainable sheet in a growth cautious of but its optimistic manner, continued to deliver results. He said despite the persistent inflationary pressures, cost-to-income ratio improved by 140 basis points driven by a moderation in operating expenses, thereby enabling the bank to record significant improvement in asset quality with a 380-basis point reduction in non-performing loan (NPL) ratio. Adeola noted that the bank continued to diversify its funding base leading to a 147.6 percent increase in long-term funding and that overall profit before tax rose by 8.1 percent to N6.6 billion while annualized pre-tax return on average equity improved by 50 basis points to 9.6 per cent.

He said: “As economic recovery gains momentum, we are well positioned to respond to emerging opportunities in education, health and transportation sectors. Our existing collaboration with pioneering technology companies in these sectors has started yielding results and this will provide a springboard for growth in 2018.”