Sterling Bank posts PBT of N6 billion

Despite the difficult macro-economic environment that characterised the 2016 fiscal year, Sterling Bank Plc, has posted a Profit Before Tax (PBT) of N6.0 billion on gross earnings of N111.4 billion during the financial year ended December 31, 2016.

According to the bank, the 2016 financial highlights showed that net interest income increased by 41.6 per cent to N56 billion (FY 2015: N39.5 billion) on account of a 22.5 per cent increase in interest income and a 4.2 per cent increase in interest expense.

Further analysis of the result showed that net loans and advances increased by 38.2 per cent to N468.2 billion (December 2015: N338.7 billion) driven primarily by foreign exchange revaluation, while customer deposits decreased marginally by 1.0 per cent to N584.7 billion (December 2015: N590.9 billion)

Also total assets (excluding contingent liabilities) increased by 4.3 per cent to N834.2 billion (December 2015: N799.5 billion) while shareholders’ funds stood at N85.7 billion at the close of the financial year.

The Managing Director/Chief Executive Officer of the Bank, Yemi Adeola, said 2016 was a difficult year for the Nigerian economy, as it was characterised by high inflation, weak oil prices, lower crude oil output and foreign exchange supply shortages.

He explained that these multiple challenges and the various regulatory responses put significant downward pressure on the earnings of banks.Adeola noted that during the year, the bank successfully deployed the “best in class” core banking application – Temenos T24; grew its active customer base and launched the disruptive, award winning payments solution, ChatPay, as the Bank optimised its traditional electronic channel offerings.

He added that these initiatives would enable the bank to optimise its operating efficiency and position it to exploit emerging business opportunities.
Commenting on the outlook for the Bank under its 2017- 21 Strategic Plan, Adeola said: “We expect that the Government’s fiscal intervention schemes alongside supportive economic policies will create pathways for economic recovery.

“Over the next five years, we will be steering our ship differently and aggressively growing the retail business through electronic channels.”In a bid to achieve this, he said the bank would prioritise efficiency over scale with the goal of achieving steady growth and sustainable returns to all our stakeholders and optimise its cost profile while providing its customers with ‘best in class’ service.

Adeola also said the bank would bolster innovative banking driven by market insights that would enable it serve its customers and earn their trust. It would also enable the bank to implement significant investment in technology-led growth initiatives as well as accelerate remarkable growth of its non-interest banking segment.