Sterling Bank stock posted a full year return of 71.29 per cent in 2012, twice the rate of average return in the Nigerian capital market during the period, according to data from Business day’s research unit.
In nearly 14 months, investors have earned more than 177 per cent gain on Sterling Bank Plc.
While the general recovery at the Nigerian stock market has seen substantial increases in values of quoted companies, some stocks like sterling Bank have been quite exceptional.
Sterling Bank has proven to be an outstandingly bullish stock since 2012. The Nigerian stock market posted average full-year return of 35.4 per cent in 2012. This implied accretion of some N2.44 trillion in capital gains to investors in 2012.
The All Share Index (ASI), the common value-based index that tracks changes in prices of all quoted companies, closed 2012 at 28,078.81 points as against its opening index of 20,730.63 points for the year.
Aggregate market capitalisation of all quoted equities also rose from its opening value of N6.533 trillion to close the year at N8.974 trillion, indicating capital gains
of N2.44 trillion.
Sterling Bank’s market consideration appreciated by 71.29 per cent in 2012, pushing through the opening price of N1.01 and a low of 80 kobo to close at N1.73. This overrode the negative return of 56.28 per cent recorded in 2011.
Sterling Bank’s latest operational report showed almost a double in gross earnings and 64 per cent increase in profit after tax.
Interim report and accounts of the bank for the third quarter ended September 30, 2012 showed substantial growths across key performance indicators, improving prospects for considerable improvement in dividends for the business year.
The report indicated 92.6 per cent growth in gross earnings, underlining the success of the lender’s bank-focused business strategy.
Interest income had doubled by 109.9 per cent while net interest income jumped by 84 per cent. Profit before tax thus rose by 58.5 per cent.
Sterling Bank grossed N50.74 billion by third quarter 2012 as against N26.35 billion recorded in comparable period of 2011.
After taxes, net profit distributable to shareholders increased from N2.74 billion to N4.49 billion.
Earnings analysis showed earnings per share of 29 kobo for third quarter 2012 compared with 22 kobo in similar period of 2011.
Commenting on the strategic outlook of the bank, its managing director, Yemi Adeola said: “the outcome we seek is to become the financial institution of choice through the creation of exceptional value for all our stakeholders: employees, shareholders, customers, business, communities where we operate, partners, vendors, the financial services industry and the country as a whole.”
He said the lender’s performance so far reflected the continuing success of the banks strategic growth initiatives as it continued to draw benefits from the seamless integration of Equitorial Trust Bank.
According to him, Sterling Bank has been well-positioned to capture emerging growth opportunities with a customer-centric approach to financial services and products.
He assured that the bank would consolidate on the progress made so far and sustain its drive towards building retail deposits with a view to achieving its corporate goals.
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