Achieves 21% growth in Gross Earnings to N28.03 Billion
Lagos, October 21, 2011 –
Sterling Bank Plc (NSE: STERLNBANK/ Reuters: STBP.LG) – the ‘Bank’ – today released its unaudited results for the first nine months ended 30 September 2011.
Commenting on the Bank’s latest results, Yemi Adeola, Group Managing Director/CEO said:
In a challenging operating environment marked by difficult global and local macro-economic conditions, Sterling Bank achieved a 21% growth year-on-year in gross earnings. Profit from ordinary activities rose 91% further demonstrating the underlying strength of our core business. In alignment with the Bank’s objective to grow risk assets as the economy rebounds, our loan book grew 28% and non-performing loans to gross loans reduced to 3.9% from 11.5% in December 2010. Further progress was accomplished with a 14% expansion in the Bank’s balance sheet over the first nine months.
During the quarter, Sterling Bank announced its acquisition of Equatorial Trust Bank. The acquisition complements Sterling Bank’s business and allows us to increase our footprint in the retail segment given a combined branch network of 189 and 64 additional branches at various stages of completion.
Looking at the final quarter of 2011, the Board of Sterling Bank is optimistic that our performance in preceding quarters will be sustained and surpassed.
Financial Highlights for the Third Quarter ended 30 September 2011
• Gross earnings rose 21% to N28.0 billion from N23.1 billion in the comparable period of 2010
• Interest income rose 28% to N19.4 billion from N15.3 billion in the comparable period of 2010, feeding through a 37% improvement in Net Interest Margins
• Operating income rose 32% to N18.1 billion from N13.7 billion in the comparable period of 2010
• Operating expenses increased 16% to N13.8 billion from N11.9 billion resulting from inflationary pressures during the period
• Profit before Exceptional Item grew 91% to N2.9 billion from N1.5 billion in 2010, while Profit after Tax stood at N3.7 billion.
• Total Assets grew by 13% to N314.0 billion from N277.1 billion in December 2010
• Deposits increased 11% to N225.1 billion from N203.1 billion in December 2010
• Net Loans & Advances (including Advances under Finance Lease) grew 28% to N132.9 billion from N103.7 billion in December 2010
• Net Interest Margin of 51% (47% in 3Q 2010)
• Annualized Return on Average Equity of 18% (30% in 3Q 2010)
• Net Loan-to-deposit of 64% (63% in December 2010)
• Non-performing Loans Ratio of 3.9% (11.5% in December 2010)• Liquidity Ratio of 58% (47% in December 2010)
• Capital Adequacy Ratio of 16% (13% in December 2010)
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About Sterling Bank
Sterling Bank PLC is the preeminent investment banking establishment in Nigeria. It commenced operations as NAL Bank in 1960. Today, with over N300 billion in assets and 95 branches nationwide, Sterling Bank has grown into a major financial supermarket offering investment banking, commercial banking, asset management, stock broking, insurance, and registrar services. The Bank prides itself as the ‘One Customer Bank’ that celebrates each customer a unique individual.
For further information, please visit http://www.sterlingbankng.com.
This release may contain forward-looking statements which reflect Sterling Bank’s current views with respect to, among other things, the Bank’s operations and financial performance. These forward-looking statements may be identified by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Sterling Bank believes these factors include but are not limited to those described in its Annual Report for the financial year ended December 31, 2010. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release. Sterling Bank undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.