Pre-Tax Profit Rises 38% to N3.3 billion
Lagos, July 26, 2012 – Sterling Bank Plc (NSE: STERLNBANK/ Reuters: STBP.LG) – the ‘Bank’ – today reported its half-year unaudited results for the second quarter ended June 30, 2012.
Half Year Management Statement to Investors by Yemi Adeola, Managing Director / CEO:
I am pleased to report on the steady progress made by Sterling Bank in the first six months of the year. Top-line revenues rose by 59% to N32.7 billion on the back of improvements in interest income, which grew by 81%. A cursory look at the other headline figures reveals a 70% increase in net interest income, 49% growth in operating income and a 38% rise in profit before and after tax.
During the reporting period, Management’s focus was on the optimization of our balance sheet. This is evident from the 13% growth in loans and advances, 600 basis points improvement in loan-to-deposit ratio, 30 basis points increase in net interest margin and 180 basis points improvement in asset quality year-on-year.
These results have been achieved against the backdrop of difficult global and domestic economic conditions, which continue to impact real sector investment, foreign investor participation, consumer confidence, and market risk appetite. The current results also come in the wake of Sterling Bank’s recent integration with the former ETB, and the associated costs arising from technology upgrade and brand standardization; the benefits of which are expected to kick in during the last quarter of the year.
Over the next six months, Sterling Bank will sustain its drive towards the generation of quality risk assets and low-cost deposits; matched with efficient customer service to enable us to achieve our well-articulated corporate goals.
• Gross earnings rose 59% to N32.7 billion (H1 2011: N20.5 billion)
• Net interest income after impairment rose 89% to N12.1 billion (H1 2011: N6.4 billion)
• Non-interest income increased 7% to N6.3 billion (H1 2011: N5.9 billion)
• Operating income rose 49% to N18.5 billion (H1 2011: N12.4 billion)
• Operating expenses increased by 52% to N15.2 billion (H1 2011: N10.0 billion)
• Profit before tax grew 38% to N3.3 billion (H1 2011: N2.3 billion)
Statement of Financial Position
• Total assets increased 1% to N511.8 billion (Dec. 2011: N504.7 billion)
• Customer deposits declined 2% to N384.7 billion (Dec. 2011: N392.0 billion)
• Net loans & advances grew 13% to N186.4 billion (Dec. 2011: N164.3 billion)
• Net interest margin of 6.3% (H1 2011: 6.0%)
• Non-performing loan ratio of 3% (Dec. 2011: 4.8%)
• Net Loan-to-deposit Ratio of 48% (Dec. 2011: 42%)
• Liquidity Ratio stood at 67% (Dec. 2011: 64%)
• Capital Adequacy Ratio of 16%
• Annualized Return on Average Equity of 14%
A PDF of the latest results may be downloaded here