Maintains First Quarter Earnings Momentum, Posts Profit before Tax of N6.3 Billion
Lagos, July 18, 2013– Sterling Bank Plc (NSE: STERLNBANK/ Reuters: STBP.LG) – the ‘Bank’ – a full service national commercial bank releases its unaudited results for the second quarter ended June 30, 2013.Half Year Management Statement to Investors by Yemi Adeola,  Managing Director / CEO:

We are pleased to report that Sterling Bank maintained its first quarter earnings momentum with record improvements on all key performance indicators. Profit before tax rose 93% from N3.2 billion in Q2 2012 to N6.3 billion, while return on average equity increased from 14% to 25% during the period. We also achieved a 21% growth in deposits as a result of our customer acquisition drive.

Over the next six months, our priority is to accelerate our US$400 million capital raising program, which commenced with overwhelming support from our shareholders for the on-going Rights Issue of N12.5 billion (US$80 million). The next phase of the program includes a US$120 million private placement and subsequently, a US$200 million multi-currency tier 2 capital raising exercise.

We remain optimistic that our capital plans will be achieved to enable us to drive business growth while delivering superior returns to our shareholders.

Financial Highlights for the second Quarter Ended June 30, 2013

Income Statement

Earnings rose 28% to N41.9 billion (Q2 2012: N32.7 billion)
Net interest income rose 27% to N15.2 billion  (Q2 2012: N12.0 billion)
Non-interest income increased 70% to N10.8 billion (Q2 2012: N6.3 billion)
Net operating income rose 36% to N24.8 billion (Q2 2012: N18.2 billion)
Operating expenses increased 24% to N18.5 billion (Q2 2012: N15.0 billion)
Profit before tax grew 93% to N6.3 billion (Q2 2012: N3.2 billion)

Statement of Financial Position

Total assets (excluding contingencies)increased by 19% to N690.8 billion
(Dec. 2012: N580.2 billion)
Total deposits increased 21% to N564.9 billion (Dec. 2012: N466.8 billion)
Net loans & advances grew 19% to N272.8 billion (Dec. 2012: N229.4 billion)
Shareholders’ funds rose5% to N49.0billion(Dec. 2012: N46.6 billion)

Financial Ratios

Annualized Return on Average Equityof 24.8% (Q2 2012: 13.7%)
Annualized Return on Average Assetsof 2.0% (Q2 2012: 1.4%)
Cost-to-income ratioof 74.7% (Q2 2012: 82.2%)
Non-performing loan ratioof 2.7% (Dec. 2012: 3.8%)
Net Loan-to-deposit Ratioof 48.3% (Dec. 2012: 49.1%)
Liquidity Ratiostood at 58.2% (Dec. 2012: 64.0%)

Investor Contacts

Abubakar Suleiman 
M:+234 803 535 1172
E:abubakar.suleiman@sterling.ng

Yemi Odubiyi                                                             
M:+234 803 535 0991
E:yemi.odubiyi@sterling.ng

Chimaobi Nwaokoma 
M: +234 803 406 6104
E:chimaobi.nwaokoma@sterling.ng

Media Contact

Shina Atilola
M:+234 802 342 3011
E:shina.atilola@sterling.ng

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