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Sterling Bank records 65% growth in FY2017 profit

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Sterling Bank records 65% growth in FY2017 profit

Sterling Bank Plc has recorded sustained growth in earnings with 65 per cent increase in profit after income tax for the full year ended December 2017.

 

The group’s profit after income tax rose to N8.521 billion during the financial year as against N5.63 billion during the corresponding period of 2016. Profit before income tax stood at N8.606 billion from N6.000 billion in 2016, accounting for an increase of 43.43 per cent.

 

The group’s gross earnings rose to N133.490 billion during the financial year ended December 31, 2017 as against N111.440 billion during the corresponding period of 2016. Sterling Bank also recorded sustained growth in earnings with 19 per cent increase in gross earnings for the third quarter ended 30 September 2017, boosted by 48.9 per cent increase in non-interest income.

 

The bank’s gross earnings rose to N94.6 billion during the third quarter ended September 30, 2017 as against N79.7 billion during the corresponding period of 2016. Other performance indicators showed that non-interest income grew by 48.9 per cent to N16.0 billion as against N10.8 billion in the third quarter of 2016.

 

Commenting on the bank’s performance, the management stated, “In the third quarter, the bank sustained its earnings growth momentum with an 18.8 per cent growth in gross earnings boosted by a 48.9 per cent increase in non-interest income,” remarking 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 the bank, despite the persistent inflationary pressures, costto- 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.

 

The bank also said that it will continued to diversify its funding base leading to a 147.6 per cent increase in long-term funding and that overall profit before tax rose by 8.1 per cent to N6.6 billion while annualized pre-tax return on average equity improved by 50 basis points to 9.6 per cent. “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,” the bank noted. Further analysis showed that net operating income increased by 0.5 per cent to N45.3 billion compared with N45.1 billion in 2016.

 

Operating expenses however moderated by 0.6 per cent to N38.8 billion as against N39 billion in 2016; profit before tax rose by 8.1 per cent to N6.6 billion as against N6.1 billion in 2016 while profit after tax also appreciated by 7.3 per cent to close the quarter at N5.9 billion compared with N5.5 billion in 2016.

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