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Sterling Bank grows profit by 41% to N8.5bn

By on October 30, 2014

Sterling Bank Plc has reported improved financial performance for the nine months ended September 30, 2014, goring its profit before tax by 41 per cent.  While the bank’s its gross earnings rose by 12 per cent, profit before tax and after tax rose by higher margin of 41 per cent and 39 per cent respectively.

Sterling Bank recorded gross earnings of N73 billion in 2014, compared with  N65.12 billion recorded in comparable period of 2013. Net interest income rose from N24.22 billion to N32.1 billion.

Profit before tax grew from N6.02 billion to N8.50 billion in 2014, just as profit after tax rose from N5.07 billion to N7.06 billion.

Commenting on the results, Managing Director of   Sterling Bank, Mr. Yemi Adeola, said it was driven by increasing brand acceptability as shown in its growing revenues and reduction in impairment charges.

He  said, as part of the initiatives to support its retail banking proposition, the bank has re- aligned its business by market segments for a more focused market reach, just as it continued to increase its transaction channels.

Adeola  noted that the 41 per cent growth in profit before tax despite pressures on earnings arising from monetary policy changes was driven byimprovements in revenues and a 30 per cent reduction in impairment charges.

According to him, the bank will conclude the on-going private placement before the end of the year.

“This will put us in a strong competitive position to achieve our growth plans in coming quarters. In the meantime, we remain focused on efficiency and are optimistic that the full year returns will be in line with our earlier Management guidance,” Adeola added.

Meanwhile, shareholders under the aegis of the Association for the Advancement of the Rights of Nigerian Shareholders (AARNS), have commended the management for the impressive performance.

Speaking to THISDAY, President of AARNS, Dr.Faruk Umar, said: “The nine months results of   Sterling Bank has shown the dexterity of the management led by Adeola. The MD and his team have continued to grow the bank   despite the headwinds in the banking industry. As shareholders, will continue to support him and his team as they continue to create value for all stakeholders,” Umar said.

 

[This Day]