Lagos, April 17, 2013– Sterling Bank Plc (NSE: STERLNBANK/ Reuters: STBP.LG) – the ‘Bank’ – a full service national commercial bank releases its unaudited results for the first quarter ended March 31, 2013.
Commenting on the results, Yemi Adeola, Managing Director / CEO said:
Our first quarter performance was ahead of expectations providing reassurance on the validity of our business model and execution capabilities. We recorded a significant improvement in our operating efficiency on the back of enhanced earnings and reduced funding costs. As a result, net operating income increased by 29%, while the cost-to-income ratio declined by 800 basis points to 74%. Growth in earnings was boosted by non-interest income, which rose by 111% on the back of an increase in trading income. Overall, the Bank achieved a 23% return on average equity (annualized).
We also sustained our deposit drive at the retail end with a 14% growth in customer deposits to N526 billion year-to-date and a 40 basis point reduction in funding costs to 5.9%.
In the second quarter, we will focus on customer acquisition, pursue deeper market penetration of our products, while sustaining growth of our share of retail deposits.
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Financial Highlights for the first Quarter Ended March 31, 2013
Income Statement
Earningsrose 22% to N19.8 billion (March 2012: N16.2 billion)
Net interest income rose 4% to N6.5 billion (March 2012: N6.3 billion)
Non-interest income increased 111% to N5.6 billion (March 2012: N2.6 billion)
Net operating income rose 29% to N11.7 billion (March 2012: N9.1 billion)
Operating expensesincreased 17% to N8.7 billion (March 2012: N7.4 billion)
Profit before tax grew 85% to N3.0 billion (March 2012: N1.6 billion)
Statement of Financial Position
Total assets increased 11% to N645.1 billion (Dec. 2012: N580.2 billion)
Total deposits increased 13% to N528.1 billion (Dec. 2012: N466.8billion)
Net loans & advancesgrew 8% to N247.6 billion (Dec. 2012: N229.4 billion)
Shareholders’ funds rose6% to N49.3billion(Dec. 2012: N46.6 billion)
Financial Ratios
Annualized Return on Average Equityof 23.0% (March 2012: 12.8%)
Annualized Return on Average Assetsof 2.0% (March 2012: 1.0%)
Cost-to-income ratioof 74.2% (March 2012: 82.0%)
Non-performing loan ratioof 3.7% (Dec. 2012: 3.8%)
Net Loan-to-deposit Ratioof 46.9% (Dec. 2012: 49.1%)
Liquidity Ratiostood at 67.8% (Dec. 2011: 64.0%)
Investor Contacts
Abubakar Suleiman
M:+234 803 535 1172
E:[email protected]
Yemi Odubiyi
M:+234 803 535 0991
E:[email protected]
Media Contact
Shina Atilola
M:+234 802 342 3011
E:[email protected]
