Sterling Bank’s Plc’s third-quarter Gross Earnings jumped 19 per cent on the back of increases in interest income, net fee and commission income and other income.
For the first nine months through September 2017, the lender’s Gross Earnings moved to N94.70 billion as it continues to embark on aggressive expansion plans with a view to the increasing share of the market.
The growth in gross earnings was strengthened by a 14 per cent, 49 per cent, and 10 per cent increase in interest income, non-interest income, and fees and commission income to N68.89 billion, N16.01 billion, and 9.03 billion respectively.
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The lender’s impressive performance amid a volatile and tough operating environment has earned it hold ratings by the investment house.
“We revise our price target to N1.15/s and maintain our Hold rating with a 13% potential upside implied by today’s closing price of N1.02/s. We arrive at our target price based on an implied 0.33x PBV multiple to our forecast 2018e BVPS of N3.48/s,” said analysts at CSL Research Limited.
Sterling Bank reported a 6 per cent increase in profit after tax to N5.87 billion in September 2017 from N5.53 billion as of September 2016.
Profit before tax followed the same growth trajectory as it grew by 8 per cent to N6.53 billion in September 2017 compared to N6.06 billion as of September 2016.
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The lender’s total loans and advances to customers spiked by 19 per cent to N557.43 billion as it remains cautious of its approach to risk-taking.
“We will continue to prioritize asset quality and operating efficiency as we navigate the current challenging operating environment,” said the Bank.
Deposits from customers were up 5 per cent to N554.47 billion in September 2017 from N584.73 billion as at September 2016.
Total assets were up 15.28 per cent to N957.78 billion in September 2017 from N830.80 billion as at September 2016; driven by growth in loans and advances.
Sterling Bank’s shares have gained 30.0 per cent since the start of while capital stood at N29.94 billion.
BALA AUGIE
