Sterling Bank Plc Releases Unaudited Results For The Quarter Ended March 31, 2017

Resilient performance in a difficult operating environment

Lagos, March 30, 2017 – Sterling Bank Plc (NSE: STERLNBANK / Reuters: STERLNB.LG /Bloomberg: STERLNBA:NL) – the ‘Bank’ – a full service national commercial bank releases its audited results for the year ended December 31, 2016.

In his remarks, Yemi Adeola, the Managing Director/ Chief Executive, stated:
2016 was a difficult year for the Nigerian economy as it was characterized by high inflation, weak oil prices, lower crude oil output and foreign exchange supply shortages. These multiple challenges and the various regulatory responses put significant downward pressure on the earnings of banks.

In the face of these difficulties, our gross earnings grew for the 6^th consecutive year to N111.4 billion.  We also maintained our commitment to operating efficiency, as highlighted by an improvement in net interest margin to 9.3% and a 22.5% growth in interest income. In addition, we successfully limited the growth in operating expenses to 1.9% despite the high inflationary environment.

During the year, we successfully deployed the “best in class” core banking application – Temenos T24; grew our active customer base; and launched the disruptive, award winning payments solution, ChatPay, even as we optimized our traditional electronic channel offerings. These initiatives will enable the Bank optimize operating efficiency and position itself to exploit emerging business opportunities.

Financial Highlights 
Income Statement 

• Net Interest Incomeincreased by 41.6% to N56.0 billion (FY 2015: N39.5 billion) on account of a 22.5% increase in interest income and a 4.2% increase in interest expense;
• Net Operating Incomeof N56.6 billion (FY 2015: N60.7 billion) deepened by impairment charges;
• Operating Expensesof N50.6 billion (FY 2015: N49.7 billion) driven by our strategic cost control measures in response to inflationary pressures.
• Profit Before Taxstood at N6.0 billion, while Profit After Tax was N5.2 billion.

Financial Position 

• Net Loans & Advancesincreased by 38.2% to N468.2 billion (Dec. 2015: N338.7 billion) driven primarily by foreign exchange revaluation;
• Customer Depositsdecreased marginally by 1.0% to N584.7 billion (Dec. 2015: N590.9 billion);
• Total Assets(excluding contingent liabilities) increased by 4.3% to N834.2 billion (Dec. 2015: N799.5 billion);
• Overall, Shareholders’ Funds closed at N85.7 billion arising from fair value adjustments on Available-For-Sale investments and organic accretion of profit.

Financial Ratios

Outlook
Commenting on the outlook for the Bank under its 2017- 21 Strategic Plan, Mr. Adeola said:

We expect that the Government’s fiscal intervention schemes alongside supportive economic policies will create pathways for economic recovery. Over the next 5 years, we will be steering our ship differently and aggressively growing the retail business through electronic channels. To achieve this, we will:
–  Prioritize efficiency over scale with the goal of achieving steady growth and sustainable returns to all our stakeholders;
–  Optimize our cost profile while providing our customers with ‘best in class’ service;
–  Bolster innovative banking driven by market insights that will enable us to satisfactorily serve our customers and earn their trust;
–  Implement significant investment in technology-led growth initiatives;
–  Accelerate the remarkable growth of our Non-Interest Banking Segment.

CONTACTS
Primary Contacts:                                                   
Chimaobi Nwaokoma
M: +234 803 406 6104
E: [email protected]

Investor Relations Team
E:[email protected]
W:https://www.sterlingbankng.com/ir-home.php