Sterling Bank posts N10.3 billion profit in 2015

Amid regulatory headwinds, Sterling Bank Plc recorded a profit after tax of N10.3 billion in its 2015 operations, against N9 billion achieved in the corresponding period in 2014.

Specifically, the bank’s audited result for the year ended December 2015 showed a profit after tax of N10.3 billion, representing an increase of 14.3 per cent, over N9 billion achieved in 2014.

The bank’s profit before tax also rose from N10.7 billion to N11.0 billion during the year under review. Non-interest income grew by 13.7 per cent from N25.7 billion in 2014 to N29.3 billion largely due to a 57 per cent increase in trading income.

Confirming the efficiency of the lender’s management, operating expenses decreased by 1.9 per cent from N50.6billion to N49.7 billion. Its net interest income however, declined by 8.1 per cent from N43.0 billion to N39.5 billion, driven by an 18.5 per cent increase in interest expense resulting in a 630 basis points reduction in net interest margin to 48.9 per cent.

The Managing Director/ Chief Executive Officer of the bank, Yemi Adeola stated: “I am pleased to report that we sustained our performance from the previous year driven by an improvement in operating efficiency.

Cost-to-Income Ratio improved by 140 basis points to 72.2 per cent, Capital Adequacy Ratio stood at a record high of 17.5per cent, while liquidity buffers remained strong as the Bank grew its After Tax Profit by 14.3per cent.”

He pointed out that the 2015 performance offered a clear validation of the underlying resilience of its business model, noting that the bank would continue to maintain a delicate balance between delivering on near term goals and laying the foundation for the future.