SunTrust Bank records profit in first year operations
SunTrust Bank Nigeria Limited has posted a profit in its first and financial year ended December 31, 2016, a development that could be seen as determination to succeed.
SunTrust Bank began commercial banking activities last year, with the vision to “offer high quality retail and commercial banking services in a modern and innovative manner.”
“We will use technology and a new way of thinking to provide banking services to many people and businesses in Nigeria for whom access to a bank account has previously been impossible.
“We will offer telephone, mobile and Internet banking underpinned by the traditional banking ethics of probity and integrity,” the Managing Director/Chief Executive Officer of the bank, Muhammed Jubrin, said.
Going by the details of the results, the bank grew its bottom-line by 160.2 per cent as profit before tax moved from N131.9 million in mortgage banking operations, to N343.34 million in 2016.
It also recorded net interest income of N935.892 million in 2016, up from N220 million in 2015, while net fee and commission income improved from N65.389 million to N92.378 million in 2016.
SunTrust Bank ended the year with a profit after tax growth by 74.57 per cent from N121.844 million in 2015 to N212.707 million in 2016. Consistent with its conservative risk profile, the bank maintained its strong liquidity position, with cash and short-term funds accounting for 32 per cent of its total assets.
Deposits rose to N4.195 billion from N788.583 million in 2015, while profit before tax and profit after tax margin improved from 9.2 per cent and 8.4 per cent in 2015 to 26.9 per cent and 16.7 per cent in 2016 respectively.
The bank is the first fresh banking licence to be issued by the Central Bank of Nigeria (CBN) since 2001, and started about seven years ago as a mortgage bank. The board and management were able to grow its balance to a reasonable size before they decided to pursue a commercial banking licence from the CBN, which they got in September of 2015.
Jubrin said the bank would be a financial technology institution that would focus electronic channels by offering telephone, mobile and internet banking services.
“Banking is no longer where you go, it is what people do. Therefore, the only thing that can stand the future is no longer physical branches, but banking services that would be driven by technology.
“So, most customers of tomorrow would no longer be the customers that they want to go to the banking hall. You need to be able to position the institution to respond positively to the needs and expectations of customers of tomorrow. That is at the heart of our own vision and strategy as tomorrow’s bank today,” Jibrin said.
The Chairman of the bank, Charles Onyema Ugboko, noted that establishing a bank amid the present economic situation showed that the board and management are committed to the growth of the Nigerian economy.
SunTrust Bank operates the branchless banking model where it will deliver financial services outside conventional bank branches.