Sterling Bank posts H1 14% growth earnings to N57.1b
Sterling Bank Nigeria Plc has shown commitment to reward shareholders remarkably for the 2017 financial year with a promising first Half year(H1) 2017, which reflects growth in key performance indices.
The bank’s second quarter result for the period ended 30th June, 2017, release by the Nigerian Stock Exchange (NSE) Thursday, showed that Gross earnings closed the Q2 at N 57,101 billion, from N50, 55b gross earnings that closed the bank’s financial year ended 31 December 2016.
Sterling Bank Plc, has reported gross earnings of N57b for the half year ended June 30, 2017, representing a growth of 14 percent over the corresponding period of 2016.
The bank’s other performance indicators showed that net interest income increased by 5.4 per cent to N27b, against N25.6b during the corresponding period of 2016, while operating expenses declined by 1.6 percent to N25.7b as against N26.1b in 2016. Overall, the bank’s profit before tax was N4.3b, while profit after tax was N3.8b.
Yemi Adeola, Managing Director/Chief Executive of the Bank said, the board and management of the bank has remained focused on delivering solid earnings. He said that the 14 per cent growth in gross earnings was powered by 20 per cent increase in interest income.
The starling Bank MD, revealed that in its bid to re-assert the Bank’s commitment to building resourceful operations, a 110 basis point improvement cost-to-income ratio was recorded in the half year, which was driven by marked reduction in operating expenses.
He said while net interest margin and asset quality improved by 80 basis points and 250 basis points respectively, the bank’s capital adequacy and liquidity ratios remain strong and above the regulatory benchmark, at 12 percent and 35 percent respectively.
The Chief Executive also remarked that the bank maintained its global credit rating from Moody’s (B2) with a stable outlook as a result of a resilient deposit funding base and solid local currency liquidity buffers.
He attributed the rating re-affirmation to improvements in the bank’s IT infrastructure and risk management processes, as well as a growing retail product suite.
Adeola assured that the bank’s H2 would sustain the growth tempo being committed to sustainable growth of its balance sheet and revenues in a cautious but optimistic manner.
According to him, the bank’s risk asset growth strategy will remain focused primarily on the health, agriculture and education sectors. The deposit money bank, Adeoola said, will continue to use technology to drive retail business.
