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Sterling Bank earns N9.1bn in Q1

By on April 30, 2011

Sterling Bank Plc has posted gross earnings ofN9.1 billion for the unaudited first  quarter results ended 31 March, 2011, indicating a growth of 9 per cent over  the N8.3 billion in the comparable period of the previous year. Profit before tax and provisions also grew 219 percent to N1.7 billion, while profit before Tax remained stable at N1.4 billion.

Net Loans & Advances(including Advances under Finance Lease) advanced six  per cent to N109.6 billion from N103.8 billion, total assets rose  marginally by one per cent to N280.8 billion from N277.1 billion. Deposits however, reduced slightly by one per cent to N201.7 billion from N203.1 billion, operating income rose 35 percent to N5.9  billion from N4.4 billion, while operating  expenses increased 9percent to N4.1 billion from N3.8 billion.

In line with Sterling Bank’s strategy of costs reductions, funding costs declined   19 per cent to N3.2 billion from N3.9 billion in the comparable period of 2010  feeding through a 13percent improvement in net interest margins.

Cost-to-Income ratio (including allowances for risk assets) was  75 per cent as against 73per cent  in first quarter of  2010, net  interest margin rose to49 per cent compared with 41per cent in Q1  2010, while annualized Return on Average Equity was18 per cent as  against 24 per cent.

Besides, Net Loan-to-deposit was 54 percent  compared with 51 per cent in December 2010, while liquidity  ratio stood at 46per cent as against 47 per cent.

Speaking on the bank’s results, Yemi Adeola, Group Managing Director said: “We started  2011 on a positive note having achieved 9 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 (MPR) by 100 basis points to 7.5 per cent, we achieved 19 per cent reduction in funding costs resulting in improved margins.

“During the period under review, management focused on balance sheet efficiency and re-allocation of resources to more profitable activities having achieved six per cent growth in net loans and advances (including advances under finance lease).

“We have embarked on key initiatives to drive stable low cost deposit mobilization in order to improve deposit mix and further enhance margins. We are optimistic that earnings will grow rapidly in the remaining quarters of the year.”

Source : Guardian

  • Alex Okuogume (economist)

    I am an economics with ten years experiences in financial market, a european with africa blood looking for ward to work in any  bank in Africa

  • Alex Okuogume (economist)

    I am an economics with ten years experiences in financial market, a european with africa blood looking for ward to work in any  bank in Africa