Sterling Bank posts N9.1bn

Sterling Bank Plc has posted gross earnings of N9.1bn for the unaudited first quarter results ended March 31, 2011, representing a growth of nine per cent over N8.3bn recorded in the comparable period of the previous year.

A statement by the bank on Wednesday showed that profit before tax remained at N1.4bn, while net loans and advances, including advances under finance lease, increased by six per cent to N109.6bn from N103.8bn.

The result also showed that total assets rose marginally by one per cent to N280.8bn from N277.1bn.

The bank’s deposits, however, dropped by one per cent to N201.7bn from N203.1bn while operating income rose by 35 per cent to N5.9bn from N4.4bn.

Operating expenses increased by nine per cent to N4.1bn from N3.8bn.

Cost-to-Income ratio, including allowances for risk assets, was 75 per cent as against 73 per cent in first quarter of 2010, while net interest margin rose to 49 per cent compared with 41per cent in Q1 2010.

Speaking on the bank’s results, the Group Managing Director, Sterling Bank, Mr. Yemi Adeola, said, “We started 2011 on a positive note having achieved nine per cent growth in gross earnings driven by strong growth in non-interest income. Despite the high interest rate regime following the review of the monetary policy rate by 100 basis points to 7.5 per cent, we achieved 19 per cent reduction in funding costs resulting in improved margins.

Source : Punch