Sterling Bank Posts 26% Growth in Q3 Profit

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Sterling Bank Plc has recorded a growth of 26 per cent in profit before tax for the nine months ended September 30, 2013 showing that the bank is performing well in the increasingly competitive banking industry.

The bank posted a profit before tax of N6.017 billion in 2013, up from N4.769 billion in 2012, while profit after tax stood at N5.074 billion compared with N4.493 billion in the corresponding period of 2012.

According to the interim accounts, gross earnings rose by 31.4 per cent to N65.1 billion as against N49.6 billion in comparable period of 2012. Net interest income grew by 43.3 per cent from N16.9 billion to N24.2 billion while non-interest income also rose by 44.7 per cent from N10.9 billion to N15.7 billion.

The report also underscored the growing brand franchise and stability of the bank as customer deposits rose by 28.6 per cent while total assets increased by 23.6 per cent. With total assets at N717.2 billion, shareholders’ funds also increased to N48.3 billion.

Commenting on the results, the Managing Director, Sterling Bank Plc, Mr. Yemi Adeola, said the nine-month performance showed the steadiness and growing profile of the bank, in spite of operating challenges due to tighter monetary policy measures.

He noted that the growth in turnover and profit were in line with the bank’s targets and underlined the commitment of the management to optimise the inherent potential of the brand as well as emerging opportunities in the industry.

According to him, having recently made through a N12.5 billion rights issue, which is currently awaiting final regulatory approval, the bank is also in the process of concluding a private placement of $120 million to further strengthen its capital position.

“In the final quarter of the year, we will continue our rollout of conventional and alternative channels to bring our products and services nearer to our target markets and further diversify our income streams. Our capital plan remains on track and we expect to close 2013 with record customer numbers arising from gains made year-to-date in this respect,” Adeola said.