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Sterling Bank grosses N82bn in nine months

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By Nkiruka Nnorom

Sterling Bank Plc has posted N82 billion in revenue for the third quarter ended September 30, 2015, representing 12 per cent growth over N73.1 billion achieved in the previous quarter.

Key extracts from  the earnings report showed that non-interest income grew  by 13.3 per cent from N18.1 billion in 2014 to N20.5 billion  in  the review period.  Profit after tax rose  by N400 million  to N7.5 billion  in the  third quarter 2015 as against N7.1 billion recorded in  the  corresponding period of 2014.

Commenting on the results,  the Managing Director, Mr. Yemi Adeola, said: “The  third quarter performance was in line with expectations  as the bank continues  to  prioritize efficiency in the management of  its  balance sheet in response to a  challenging  operating environment.”

He explained  that in spite of the  pressure on earnings,  the bank  was  able to  achieve a  12 per cent growth in top-line revenue  to N82  billion,  driven by a 13 per cent increase in non-interest  income and a 210 basis points improvement in cost-to-income ratio.

He attributed the increase in  funding costs by 130 basis points  to  tighter  monetary policy measures  while the increase in non-performing loan ratio  to 4.9 per cent  was  driven primarily by a reduction  in the size of the overall loan book as a result of the re-purchase of state  government loans by the  federal  government.

According to him, the bank would deploy the  capital freed up from the liquidation of the  re-purchased  loans  to generate further earnings  and  bolster the returns to shareholders. “Our capital adequacy ratio reached an all-time high of 19.3 per cent driven by  asset substitution arising from the liquidation of the previously highlighted sub-sovereign  loans.


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