Sterling Bank PLC Releases Audited Results for the Year Ended December 31, 2011

Declares Dividend of 10 kobo Per Share 
Lagos, April 13, 2012 – Sterling Bank Plc (NSE: STERLNBANK/ Reuters: STBP.LG) – the ‘Bank’ – today reported its full year audited results for the financial year ended December 31, 2011.
Speaking on the results, Yemi Adeola, Managing Director/CEO said:
The Bank’s performance in 2011 underscores once again our ability to attain growth despite challenging economic conditions. We recorded impressive growth in key performance indicators. Gross earnings rose 49% to N45.2 billion driven by strong improvements in non-interest income, while profit after tax and extra-ordinary income grew 60% to N6.7 billion. Our key ratios were on target. Return on average equity was 20%, while the ratio of non-performing loans to gross loans was 4.8%. 
Following a successful business combination with ETB, the Bank emerged a stronger institution with total assets of N583 billion (including contingencies), deposits of N407 billion and a network of almost 200 branches. We have completed customer, product, brand, branch and technology/systems integration and have progressed considerably in people integration. In the immediate future, we are well positioned to tap both cost and revenue benefits arising from economies of scale and operational synergies from the business combination. We are highly optimistic that we will build on these achievements to deliver better results in 2012.
Finally, the Board of Directors has proposed a dividend of 10 kobo per share for 2011, which is subject to the approval of shareholders at the Annual General Meeting.
Financial Highlights for the Year Ended 31 December 2011 

Income Statement 

• Gross earnings  rose 49% to N45.2  billion from N30.4  billion  in   2010  driven by  110% growth in non-interest income

• Interest income rose 23% to N30.2 billion compared to N24.5 billion in 2010. However, net interest margin was relatively stable at N14.6 billion due to an increase in funding costs arising from tighter monetary policy measures of the CBN

• Operating income rose 32% to N27.0 billion compared to N20.4 billion in 2010

• Operating expenses  increased 35% to N20.4 billion from N15.2 billion  in 2010 due to merger related expenses and inflationary pressures during the period

• Profit after Tax and Extra-ordinary Income grew 60% to N6.7 billion from N4.2 billion in 2010 driven by strong revenue growth and net gain from sale of subsidiaries.

Balance Sheet 

• Total Assets grew by 94% to N504.4 billion from N259.6 billion in December 2010

• Deposits increased 104% to N406.5 billion from N199.3 billion in December 2010

• Net Loans & Advances  including Advances under Finance Lease  grew  60% to N163.5 billion from N101.9 billion in December 2010 (organic growth: 30%)

• Shareholders’  Equity  rose  56%  to  N41.0 billion from N26.3 billion in December 2010 arising from revenue accretion and the completion of the business combination with Equitorial Trust Bank (ETB)

Financial Ratios 

• Dividend per share of 10 kobo

• Return on Average Equity of 20% (17% in 2010)

• Non-performing Loans Ratio of 4.8% (10.7% in 2010)

• Net Interest Margin of 48% (59% in 2010)

• Cost to Income ratio (including allowances for risk assets) of 82% (78% in 2010)

• Liquidity Ratio of 64% (47% in 2010)

• Capital Adequacy Ratio of 17% (13% in 2010)

Download: A PDF of this earnings release may be downloaded here.
Corporate Contacts
Investors
Yemi Odubiyi
M: +234 803 535 0991
Abubakar Suleiman 
M: +234 803 535 1172
E: [email protected]

Media Contact 
Shina Atilola 
M: +234 802 342 3011
E: [email protected]

About Sterling Bank 
Sterling Bank PLC is the preeminent investment banking establishment in Nigeria. It commenced operations as NAL Bank in 1960. Today, with over N500 billion in assets and 186 branches nationwide, Sterling Bank has grown into a major financial institution. The Bank prides itself as the ‘One Customer Bank’  that celebrates each customer a unique individual. For further information, please visit https://sterling.ng
Forward-Looking Statements 
This release may contain forward-looking statements which reflect Sterling Bank’s current views with respect to, among other things, the Bank’s operations and financial performance. These forward-looking statements may be identified by the use of words such as “outlook,”  “believes,”  “expects,” “potential,”  “continues,”  “may,”  “will,”  “should,”  “seeks,”  “approximately,”  “predicts,”  “intends,”  “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Sterling Bank believes these factors include but are not limited to those described in its Annual Report for the financial year ended December 31, 2011. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release. Sterling Bank undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
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