Sterling Bank Plc has declared that its gross earnings in the nine months period to September 30, 2017 rose by 19 percent.
The bank’s gross earnings stood at N94.6 billion during the third quarter (Q3) in review as against N79.7 billion during the corresponding period of 2016. Other performance indicators showed that non-interest income grew by 48.9 percent to N16.0 billion as against N10.8 billion in the third quarter of 2016.
Overall profit before tax (PBT) marginally rose by 8.1 percent to N6.6 billion while annualized pre-tax return on average equity improved by 50 basis points to 9.6 percent.
On the bank’s performance, its Managing Director/CEO, Mr. Yemi Adeola, explained the rise in profit.
He said, “In the third quarter, the bank sustained its earnings growth momentum with an 18.8 percent growth in gross earnings boosted by a 48.9 percent increase in non-interest income.”
He further disclosed that during the year, the bank’s strategy built on efficient operations and sustainable growth of its balance sheet in a cautious but optimistic manner, continued to deliver results.
According to him, despite the persistent inflationary pressures, cost-to-income ratio improved by 140 basis points driven by a moderation in operating expenses, thereby enabling the bank to record significant improvement in asset quality with a 380-basis point reduction in non-performing loan (NPL) ratio.
He also said that the bank continued to diversify its funding base leading to a 147.6 percent increase in long-term funding. The CEO noted, “As economic recovery gains momentum, we are well positioned to respond to emerging opportunities in education, health and transportation sectors. Our existing collaboration with pioneering technology companies in these sectors has started yielding results and this will provide a springboard for growth in 2018.”
Further analysis showed that net operating income increased by 0.5 percent to N45.3 billion compared with N45.1 billion in 2016. Operating expenses however moderated by 0.6 percent to N38.8 billion as against N39 billion in 2016; profit before tax rose by 8.1% to N6.6 billion as against N6.1 billion in 2016 while profit after tax also appreciated by 7.3 percent to close the quarter at N5.9 billion compared with N5.5 billion in 2016.
The bank’s financial ratios showed pre-tax return on average equity of 9.6 percent compared with 9.1 percent in 2016, post tax return on average equity was 8.6 percent as against 8.3 percent in 2016 while earnings per share rose to 21 kobo in 2017 from 19 kobo in 2016.
Sterling Bank’s non-performing loan ratio dropped to 6.1 percent in 2017 from 9.9 percent in 2016, while capital adequacy ratio increased to 11.4 percent in 2017 from 11.2 percent in 2016.
The financial position statement of the bank showed that shareholders’ funds rose by 13.6 per cent to N97.3 billion as against N85.7billion) in 2016 while total assets, excluding contingent liabilities, increased by 15.2 percent to N961 billion against N834.2 billion in 2016.