Sterling Bank focuses on cost reduction to strengthen bottom-line

Sterling Bank plc has reiterated its commitment to strengthen its mid- and bottom-line performances as its increasing focus on cost reduction credit risks management and operating efficiency cushioned macro headwinds and retained value for shareholders.

Consequently, the bank will holds its 53rd annual general meeting (AGM) on April 30, 2015, Lagos.

The bank in a statement signed by the company secretary, Justina Lewa said the directors of the bank at the AGM will receive the audited financial statements for the year ended December 31, 2014, together with the reports of the directors, auditors and the audit committee; declare a dividend; elect/re-elect directors; approve the remuneration of the directors; authorise the directors to fix the remuneration of the auditors and elect members of the audit committee.

Key extracts of the audited report and accounts of the bank for the year ended December 31, 2014 released last week at the Nigerian Stock Exchange (NSE) showed appreciable growth in all key performance indices, sustaining the strong performance outlook of the lender in spite of industry-wide headwinds.

For instance, it announced gross earnings of N103.7 billion and a profit before tax of N10.7 billion, an increase of 13 percent and 15.4 percent over its 2013 figures, respectively.

Major highlights showed that net interest income leapt by 20.1 percent to N43.0 billion in 2014, as against N35.8 billion recorded in 2013.

This was driven mainly by an 11.4 percent growth in interest income to N77.9 billion, which far outweighed the 2.2 percent increase in funding costs to N34.9 billion.

This underlined the increasing cost efficiency of the lender as cost of funds dropped from 6.1 percent in 2013 to 5.3 percent in 2014. Similarly, non-interest income grew by 18.3 percent from N21.8 billion in 2013 to N25.7 billion in 2014.

This was boosted by an 82.2 percent growth in net trading income to N6.8 billion.

Net operating income rode on the back of growth in net interest income and a 10.5 percent reduction in impairment charges to N61.4 billion in 2014, an increase of 24.4 percent on N49.3 billion recorded in 2013.

While the bank recorded a profit before of N10.7 billion its profit after tax increased by 8.8 percent to N9 billion.

The its balance sheet also emerged stronger.

Net loans and advances increased by 15.4 per cent to N371.2 billion in 2014 compared with N321.7 billion in 2013.

Customer deposits rose by 15 percent to N655.9 billion as against N570.5 billion, while shareholders’ funds increased by 33.5 percent from N63.5 billion to N84.7 billion.

Total assets closed 2014 at N824.5 billion, representing an increase of 16.5 percent on N707.8 billion recorded in 2013.

Commenting on the results, the bank’s managing director, Yemi Adeola, said the bank’s performance showed the strengths of its resilient growth model and its ability to continue to deliver value for all stakeholders.

HOPE MOSES-ASHIKE