Sterling Bank Q3 earnings grow N79.6b gross
Sterling Bank Plc has posted gross earning of N79.66 billion and Profit Before Tax of N6.07 billion for the nine months ended September 310, 2016.
Specifically, the bank’s unaudited result for the third quarter (Q3) 2016, showed gross earnings of N79.65 billion down from N81.81 billion achieved in the corresponding period in 2015. However, its profit before tax stood at N6.07 billion, lower than N8.30 billion recorded during the same period in 2015.
Net interest margin, which measures the profitability of the core lending business, improved to 8.5 per cent in the Q3, against 7.9 per cent in comparable period of 2015. The proportion of non-performing loans (NPL) improved significantly from 4.8 per cent December 2015 to 2.5 per cent in the review period.
The bank’s cost of funds also improved to 5.3 per cent in Q3 compared with 6.2 per cent a year ago.
Further analysis of the financial statement showed that net interest income rose by 37.6 per cent from N30.2 billion in 2015 to N41.5 billion in this year. Non-interest income however reduced by 47.6 per cent to N10.8 billion against N20.5 billion mainly because of 34.2 per cent decline in fees and commission.
Net loans and advances increased by 46.2 per cent to N495.3 billion in September 2016 against N338.7 billion recorded at the beginning of this year. This was driven primarily by foreign exchange revaluation.
Customer deposits also improved from N590.9 billion as at December 31, 2015 to N595.1 billion in September 2016. Total assets, excluding contingent liabilities, increased by 11.4 per cent to N890.3 billion against N799.5 billion at the start of the year.
According to the bank, its 37.7 per cent growth in net interest income was largely due to a 12 per cent reduction in interest expense, which underpinned the 60 basis points increase in net interest margin
No comments yet