CEO, Sterling Bank, Mr. Yemi Adeola
Sterling Bank Plc has grown its profit after tax by 64 per cent for the third quarter ended September 30, 2012, showing the fruits of investments the bank made in the recent years.
The bank, which acquired Equatorial Trust Bank, reported a gross earnings of N50.742 billion, up from N26.344 billion in 2011. Net income rose from N18.852 billion in 2011 to N39.559 billion in 2012.
Profit before tax stood at N4.769 billion, compared with N3.012 billion, while profit after tax rose by 64 per cent from N2.743 billion to N4.498 billion.
More customers patronised Sterling Bank as indicated in the level of deposits, which rose by 11 per cent from N392.048 billion to N433.974 billion, up from N392.048 billion.
The bank also empowered more businesses as its loans and advances rose by 39 per cent from N164.276 billion to N229.432 billion.
With the impressive Q3 performance, stakeholders believe that investors would once again smile at the end of financial year ending December 31, 2012.
Commenting on the results, Managing Director/Chief Executive Officer of Sterling Bank Plc, Mr. Yemi Adeola, said the performance reflected the continuing success of the bank’s strategic growth initiatives as it continued to draw benefits from the seamless integration of Equatorial Trust Bank.
According to him, Sterling Bank has been well positioned to capture emerging growth opportunities with customer-centric approach to financial services and products.
“In line with our forecast, loans and advances grew by 23 per cent to N229.4 billion on the back of our enhanced presence in the corporate banking space. We also grew customer deposits by 13 per cent to N434 billion and added over 22,000 retail accounts. Despite the 400 basis points increase in Cash Reserve Ratio in July, we recorded a 70 basis points reduction in cost of funds to six per cent,” Adeola said.
He said the performance of the bank showed its underlying strengths, pointing out that the increase in cost-to-income ratio was as a result of one-off merger related expenses.
He noted that the growth in loans and reduction in non-performing assets were in line with the bank’s objective to grow risk assets as the economy rebounds while focusing on quality growth
He assured that directors of the bank were confident they would sustain the performance.
“In the last quarter of the year, we will consolidate on the progress made thus far and sustain our drive towards building our retail deposits with a view to achieving our corporate goals for year-end,” Adeola assured.