2012-04-16 Sterling Bank Makes N45bn Gross Earnings
Sterling Bank Plc has said its gross earnings increased significantly by 49 per cent to N45.2 billion in its audited results for the year ended December 31, 2011 as against the N30.4 billion recorded in 2010.
The commercial bank also disclosed that its net profit also increased by 60 per cent to N6.7 billion in the period under review
A statement from Sterling Bank at the weekend, also said that the performance generally reflected robust growth in it income and profitability. According to the financial institution, its interest income increased from N24.5 billion in 2010 to N30.2 billion in the year under review.
It added: “Operating income also grew by 32 per cent to N27.0 billion in 2011 compared with N20.4 billion in 2010. Profit after tax and extra-ordinary income thus jumped by 60 per cent to N6.7 billion in 2011 as against N4.2 billion in 2010.
“The bank emerged with a stronger and healthier balance sheet as the proportion of bad loans to total loans and advances surpassed the Central Bank of Nigeria (CBN)’s industry target of 5 per cent at 4.8 per cent.
“Non-performing loans had stood at 10.7 per cent of gross loans in 2010. Sterling Bank’s total balance sheet nearly doubled from N259.6 billion in 2010 to N504.4 billion in 2011. Total deposits doubled by 104 per cent to N406.5 billion as against N199.3 billion while the bank expanded its risks assets as net loans and advances rose by 60 per cent to N163.5 billion from N101.9 billion in 2010.”
Speaking on the results, Managing Director/Chief Executive Officer, Sterling Bank, Mr. Yemi Adeola, said the bank’s performance in 2011, underscored its ability to attain growth despite challenging economic conditions.
According to him, the bank had harnessed the opportunities created by its successful business combination with the Equitorial Trust Bank (ETB).
He added that the bank had emerged as a stronger institution with a network of almost 200 branches.
Adeola also reiterated the commitment of the board and management to unlock values for shareholders as the bank consolidates its operations to focus on core commercial banking business in line with the new regulatory regime of the apex bank.
He further assured stakeholders of the bank of a robust outlook going forward.
“A cleaner balance sheet and impressive growth in net profit set Sterling Bank apart from banks’ results so far. Return on average equity increased from 17 per cent in 2010 to 20 per cent. Liquidity ratio improved from 47 per cent to 64 per cent while capital adequacy ratio improved from 13 per cent to 17 per cent.
“The sterling performance has impacted positively on pay-outs to shareholders with the board recommending distribution of about N1.6 billion as cash dividends to shareholders, representing a dividend per share of 10 kobo,” it added.