Gross Earnings rises by 12.0% to N28.6 Billion

 

Lagos, April 28, 2017 – Sterling Bank Plc (NSE: STERLNBANK / Reuters: STERLNB.LG /Bloomberg: STERLNBA: NL) – the ‘Bank’ – a full service national commercial bank releases its unaudited results for the quarter ended March 31, 2017.

In his remarks, Yemi Adeola, the Managing Director/ Chief Executive, stated:

Our first quarter performance was in line with expectations, as earnings remained resilient with double-digit growth despite the macroeconomic headwinds that persisted during the period.

We made significant progress in our efficiency drive through the adoption of strategic cost management initiatives. As a result, we recorded a 3.3% reduction in Operating Expenses and a 190 basis point improvement in Cost-to-Income Ratio. Also, Net Interest Margin improved marginally to 8.2% despite the crowding out effect of sovereign borrowing which kept interest rates high. We retained our cautious stance on lending and continued to strengthen our risk management framework across people, processes and IT systems.

Going into the year, we will continue to explore innovative ways to improve revenue, while simultaneously enhancing the overall efficiency of our business operations.



Financial Highlights 

Income Statement

  • Net Interest Income increased by 18.3% to N13.5 billion (Q1 2016: N11.4 billion) on account of a 26.3% increase in Interest Income;
  • Net Operating Income of N14.2 billion (Q1 2016: N15.4 billion) impacted by impairment charges;
  • Operating Expenses of N12.2 billion (Q1 2016: N12.6 billion) driven by our strategic cost control measures in response to inflationary pressures;
  • Profit before Tax stood at N2.0 billion, while Profit after Tax was N1.9 billion.

Financial Position

  • Net Loans & Advances was relatively flat at N467.4 billion (Dec. 2016: N468.3 billion);
  • Customer Deposits decreased marginally by 2.5% to N570.2 billion (Dec. 2016: N584.7 billion);
  • Total Assets(excluding contingent liabilities) increased by 6.8% to N891.3 billion (Dec. 2016: N834.2 billion);
  • Overall, Shareholders’ Funds closed at N87.5 billion arising from organic accretion of profit.

Key Financial Ratios

IndicatorQ1 2017Q1 2016
Pre Tax Return on Average Equity9.4%11.9%
Post Tax Return on Average Equity8.7%10.8%
Return on Average Assets0.9%1.4%
Earnings per Share7k9k
Yield on Earning Assets14.7%13.4%
Cost of Funds6.5%5.3%
Net Interest Margin8.2%8.1%
Cost-to-Income Ratio72.9%74.8%
IndicatorMar. 2017Dec. 2016
Non-Performing Loan Ratio12.0%9.9%
Cost of Risk2.1%2.5%
Capital Adequacy Ratio (Basel 2)10.8%11.2%
Loan to Deposit Ratio (Net)82.0%80.1%

CONTACTS
Primary Contacts:                                                   
Chimaobi Nwaokoma
M: +234 803 406 6104
E: chimaobi.nwaokoma@sterlingbankng.com

Investor Relations Team
E:investor.relations@sterlingbankng.com
W:https://www.sterlingbankng.com/ir-home.php

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