Home / Business / Sterling Bank’s income up by 14% H1

Sterling Bank’s income up by 14% H1

Yemi Adeola, MD, Sterling Bank

Sterling Bank Plc, has achieved 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.

Other performance indicators showed that net interest income increased by 5.4 per cent to N27 billion against N25.6 billion during the corresponding period of 2016, while operating expenses declined by 1.6 per cent to N25.7 billion against N26.1 billion in 2016, re-affirming the bank’s commitment to building efficient operations.

Overall, the bank’s profit before tax was N4.3 billion, while profit after tax was N3.8 billion. During the period under review, the bank’s loans and advances increased by 11.9 per cent to N524 billion from N468.3 billion in December 2016.

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 per cent to N94.6 billion from N85.7 billion in December 2016, while total assets (excluding contingent liabilities) increased by 14.8 per cent to N957.9 billion compared to N834.2 billion in December 2016.

The Managing Director/Chief Executive, Sterling Bank, Yemi Adeola, said: “We continued to deliver strong top line earnings with a 14 per cent growth in gross earnings arising from a 20 per cent increase in interest income.”

According to him, the bank re-affirm its commitment to building efficient operations by recording a 110 basis point improvement in cost-to-income ratio as a result of the reduction in operating expenses.

He said while net interest margin and asset quality improved by 80 basis points and 250 basis points respectively, the bank’s capital adequacy and liquidity ratios remain strong and above the regulatory benchmark, at 12 per cent and 35 per cent respectively.

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Adeola also added 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 to 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 revenue in a cautious but optimistic manner, adding that risk asset growth strategy will remain focused primarily on the health, agriculture and education sectors.

He said 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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