Sterling Bank’s Q1 profit rises by 25% to N3.9bn

Sterling Bank plc has recorded a 25 percent increase in its profit after tax for the first quarter ended March 31st, 2015, demonstrating the lender’s ability to sustain its growth in spite of industry headwinds. According to key extracts of the results released today at the Nigerian Stock Exchange (NSE), which showed appreciable growth in all key performance indices, the Bank’s profit after tax leapt from N3.1bn to N3.9bn year-on-year.

Similarly, pre-tax profit rose by 14.1 percent from N3.5bn to N4bn, while non-interest income grew by 31.9 percent from N6.1bn to N8bn, driven by a 51 percent growth in fees and commission, which rose to N5bn.

In the same breadth, net operating income inched up by 6.1 percent from N15.3bn to N16.2bn on the back of a growth in non-interest income and a 10.4 percent reduction in impairment charges.

Net loans and advances also increased by 5.7 percent from N371.2bn to N392.4.0bn due to the lender’s “selective approach to asset creation.”

Besides, shareholders’ funds increased marginally by 4.3 percent from N84.7bn to N88.4bn due to profit accretion, while total assets excluding contingent liabilities advanced by 2.1 percent from N824.5bn to N841.9bn.

In the bank’s quarterly update to investors and analysts, Yemi Adeola, the managing director/ chief executive, stated: Our first quarter performance was in line with expectations having recorded a 25 percent growth in bottom-line earnings. This was driven by non-interest income, which rose by 32 percent to N8bn on the back of a 51 percent increase in fees and commission.