Sterling Bank bemoans economy, eyes better returns in 2016

Sterling Bank Plc stands a good chance of closing the current business year with improved fundamentals and returns to stakeholders, the management of the bank has said.

At the annual general meeting held on Tuesday at Eko Hotel & Suites, Victoria Island, Lagos, the directors of the bank assured shareholders and other stakeholders that the bank is in good stead to deliver better returns.

Addressing the shareholders, managing director, Sterling Bank Plc, Mr. Yemi Adeola said the bank has the right strategy to win in the marketplace irrespective of the macroeconomic headwinds.

“Our strategy remains clear for 2016, and I am pleased to inform you that we are well on course to achieve our set goals,” Adeola said.

He said the bank has continued to place emphasis on quality growth noting that asset quality has remained resilient with non-performing loans (NPL) below the maximum regulatory threshold of five per cent despite a significant reduction in the loan book, arising from the replacement of state government loans with federal government bonds.

Chairman, Sterling Bank Plc, Mr. Asue Ighodalo also said the bank remains steadfast in its quest to build long-term, sustainable value for its stakeholders in line with the global sustainable development goals and the Central Bank of Nigeria (CBN)’s sustainable banking principles.

“We are cautiously optimistic on the outlook for the 2016 financial year. Whilst business and consumer confidence remain fragile, the levels of underlying actively and the present government’s commitment to improving the real sector gives a base for the growth of the Nigerian economy,” Ighodalo said.

President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar lauded the efforts of the board and management for delivering impressive performance for the year ended 31 December, 2015 in spite of macroeconomic and industry headwinds.

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He urged the board to work harder in sustaining and improving on the current performance of the bank.

Key extracts of the audited report and accounts of Sterling Bank Plc for the year ended December 31, 2015 showed modest growth across key performance indicators. Gross earnings rose from N103.68 billion in 2014 to N110.19 billion in 2015.

Non-interest income grew by 13.7 per cent from N25.7 billion in 2014 to N29.3 billion largely due to a 57 per cent increase in trading income. Confirming the efficiency of the lender’s management, operating expenses decreased by 1.9 per cent from N50.6billion to N49.7 billion.

Net interest income however, declined by 8.1 per cent from N43.0 billion to N39.5 billion, driven by an 18.5 per cent increase in interest expense due to a 630 basis points reduction in net interest margin to 48.9 per cent.

Profit before tax rose slightly by 2.5 per cent to N11.02 billion in 2015 as against N10.75 billion in 2014. Profit after tax grew by 14.3 per cent from N9.0 billion in 2014 to N10.3 billion in 2015 due to a higher retention of organic capital compared to the previous period. Earnings per share however declined from 42 kobo in 2014 to 36 kobo in 2015.

 

 

 

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