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.
Financial Highlights for the first Quarter Ended March 31, 2013
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)
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%)
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