Sterling Bank Plc has recorded growth in its first quarter financial result as the gross earnings rose by 24.1 per cent, while profit before tax grew by 17.2 per cent. Profit after tax also increased by 15.4 per cent.
The report indicated that gross earnings rose to N24.6 billion in first quarter 2014 against N19.84 billion recorded in the corresponding period of 2013. Profit before tax rose from N3.02 billion to N3.54 billion, while profit after tax increased from N2.72 billion to N3.14 billion.
Net interest income rose by 58 per cent due to 31 per cent growth in interest income relative to a modest increase of eight per cent in interest expense. This resulted in a 35 per cent growth in operating income to N16.2 billion. The annualized return on average equity was 20 per cent in line with the bank’s medium term strategic objectives.
Commenting on the results, managing director, Sterling Bank Plc, Mr. Yemi Adeola, said the first quarter was a positive start for the bank and a reflection of the bank’s improving efficiency and robust credit risk management.
According to him, in spite of a marginal decline in deposit to N540 billion, the bank recorded a 30 basis points reduction in cost of funds to 5.6 per cent; reflecting management’s focus on balance sheet efficiency.
He noted that loans and advances grew to N337 billion, while asset quality remained strong with a non-performing loan ratio of 1.8 per cent.
“Over the next few quarters, we will continue the upgrade of our physical infrastructure and rollout of conventional and alternative channels in order to deepen market penetration of our products and grow retail deposit market share. Loan growth will remain steady and disciplined with the overall target for the year set at 25 per cent,” he said.
