Sterling Bank Plc
From Benjamin a ameh, Lagos
The Board and Management of Sterling Bank plc in a statement of comprehensive income to the capital market community through the floor of the Nigeria Stock Exchange NSE disclosed that the bank Gross Earnings stood at N48,697,167 from N41,855,121in 2013.
In the same vein, the directors of the bank has released the results shown Profit After Taxation of N5,527,524 to N5,922,041 in 2013.
Above results performances has again showed that the bank has finally return to its steady impressive performance after consolidated on the performance with improved results in the first quarter (Q1) ended March 31, 2014.
Despite the banking industry hardship operating environments, Sterling Bank recorded gross earnings of N24.6 billion, up from N19.84 billion recorded in the corresponding period of 2013. Profit before tax also rose from N3.02 billion to N3.54 billion, while profit after tax followed the performance with an increased of 0.42billion showed figures of N2.72 billion to N3.14 billion.
Also Net interest income rose by 58 per cent due to 31 per cent growth in interest income relative to a modest increase of eight per cent in interest expense. This resulted in a 35 per cent growth in operating income to N16.2 billion.
In spite of a marginal decline in deposit to N540 billion, it recorded a 30 basis points reduction in cost of funds to 5.6 per cent; it showed management’s focus on balance sheet efficiency. While loans and advances grew to N337 billion, leaving asset quality to remained strong with a non-performing loan ratio of 1.8 per cent.
“Over the next few quarters, the trend will continue in area of the upgrade of physical infrastructure, rollout of conventional and alternative channels in order to deepen market penetration of products and grow retail deposit market share. Loan growth will remain steady and disciplined with the overall target for the year set at 25 per cent.”
One bank customer had grown its profit by 24 per cent to N9.3 billion in 2013. While the total assets including contingent liabilities increased by 28 per cent to N909.4 billion followed shortly by shareholders’ funds grew to N63.5 billion from N46.6billion, representing 36.1 per cent due to profit accretion and net proceeds of N12.1 billion from the rights issue..
“Asset quality indicator was not left out as it improved significantly with non-performing loan ratio down to 2.1 per cent from 3.8 per cent in 2012. Bank also gained traction in retail drive with an active customer base exceeding one million resulting in 23 per cent growth in deposits.”
After approval to increase the authorised share capital from N12 billion to N16 billion to enhance its ability to finance big projects which the coordinator of Independent Shareholders Association of Nigeria (ISAN), sir Sunny Nwosu, noted that the increase of share capital would enable the bank to finance big business.
“If the capital base is not robust, we will not be able to do big business. Go and increase the capital to be in the league of banks that can do big business,” Nwosu said.
This series of finance performances has shown the underlying institutional strength of the bank
