Sterling Bank posts 25 per cent Q1 profit

Sterling Bank Plc has recorded a 25 percent increase in its profit after tax for the first quarter ended March 31st, 2015.

According to the results released at the Nigerian Stock Exchange (NSE) yesterday, the Bank’s profit after tax rose from N3.1 billion to N3.9billion year-on-year.

Similarly, pre-tax profit rose by 14.1 percent from N3.5 billion to N4.0 billion, while non-interest income grew by 31.9 percent from N6.1billon to N8.0 billion, driven by a 51 percent growth in fees and commission, which rose to N5 billion.

Also, net operating income inched up by 6.1 percent from N15.3 billion to N16.2 billion on the back of a growth in non-interest income and a 10.4 percent reduction in impairment charges while gross earnings rose by 13 per cent to N103.7 billion.

Net loans and advances also increased by 5.7 percent from N371.2billion to N392.4.0 billion due to the lender’s “selective approach to asset creation.”

Besides, shareholders’ funds increased marginally by 4.3 percent from N84.7billion to N88.4 billion due to profit accretion, while total assets excluding contingent liabilities advanced by 2.1 percent from N824.5billion to N841.9 billion.

The Managing Director/ Chief Executive, Yemi Adeola explained that the first quarter performance was in line with expectations having recorded a 25per cent growth in bottom-line earnings.

He said the improved performance was driven by non-interest income, which rose by 32per cent to N8.0 billion on the back of a 51per cent increase in fees and commission.

“We recorded a marginal increase in operating expenses, which was slower than the growth in net operating income resulting in a 14per cent improvement in profit before tax.