Sterling Bank PLC Releases Unaudited Results for the First Quarter ended March 31, 2011

Reports Earnings of N9.1 Billion, Declares Profit before Tax of N1.4 Billion
Lagos, April 28, 2011 – Sterling Bank Plc (NSE: STERLNBANK/ Reuters: STBP.LG) – the ‘Bank’ – today released its unaudited results for the first quarter ended 31 March 2011.
The Bank continues to make steady progress in its strategy built on expanding retail clientele contributions to earnings through customer-focused initiatives; selective asset picking among surplus cash-generative SME customers; and growth of the corporate banking business.
Speaking on the Bank’s results, Yemi Adeola, Group Managing Director said:
We started 2011 on a positive note having achieved 9% growth in gross earnings driven by strong growth in non-interest income. Despite the high-interest rate regime following the review of the Monetary Policy Rate (MPR) by 100 basis points to 7.5%, we achieved a 19% reduction in funding costs resulting in improved margins. During the period under review, Management focused on balance sheet efficiency and re-allocation of resources to more profitable activities having achieved 6% growth in net loans and advances (including advances under a finance lease). 
We have embarked on key initiatives to drive stable low-cost deposit mobilization in order to improve deposit mix and further enhance margins. We are optimistic that earnings will grow rapidly in the remaining quarters of the year.
Financial Highlights for the First Quarter ended 31 March, 2011
Income Statement
  • Gross earnings rose 9% to N9.1 billion from N8.3 billion in the comparable period of  2010
  • Funding costs declined 19% to N3.2 billion from N3.9 billion in the comparable period of 2010 feeding through a 13% improvement in Net Interest Margins
  • Operating income rose 35% to N5.9 billion from N4.4 billion in the comparable period of  2010
  • Operating expenses increased 9% to N4.1 billion from N3.8 billion in the comparable period of 2010
  • Profit before Tax and Provisions grew 219% to N1.7 billion, while Profit before Tax remained stable at N1.4 billion
Balance Sheet
  • Total Assets grew marginally by 1% to N280.8 billion from N277.1 billion in December 2010
  • Deposits reduced slightly by 1% to N201.7 billion from N203.1 billion in December 2010
  • Net Loans & Advances (including Advances under Finance Lease) grew 6% to N109.6 billion from N103.8 billion in December 2010
Financial Ratios
  • Cost-to-Income ratio (including allowances for risk assets) of 75% (73% in Q1 2010)
  • Net interest margin rose to 49% (41% in Q1 2010)
  • Annualized Return on Average Equity of 18% (24% in Q1 2010)
  • Net Loan-to-deposit of 67% (63% in December 2010)
  • Liquidity Ratio stood at 46% (47% in December 2010)
Download: A PDF of this earnings release may be downloaded here and a plain text version here.
Corporate Contacts
Yemi Odubiyi
M: +234 803 535 0991
Abubakar Suleiman 
M: +234 803 535 1172
Abimbola Sowemimo
Head, Brand Management & Communications
M: +234 803 306 9033
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 N277 billion in assets and 95 branches nationwide, Sterling Bank has grown into a major financial supermarket offering investment banking, commercial banking, asset management, stock broking, insurance, and registrar services. The Bank prides itself as the “One Customer Bank” that celebrates each customer as a unique individual.
For further information, please visit
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, 2009. 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.