Sterling Bank restates commitment to improved returns to shareholders

Sterling Bank plc remains steadfast in its quest to build long term, sustainable value for its stakeholders in line with the global sustainable development goals and the Central Bank of Nigeria (CBN) sustainable banking principles.

At the bank’s 54th annual general meeting (AGM) held Tuesday in Lagos, the board and management expressed commitment to roll up their sleeves and implementing several initiatives aimed at positioning the bank as an efficient and systematically important operator, delivering superior returns to stakeholders.

The shareholders at the meeting received and adopted the audited financial statement of Sterling Bank plc for the year ended December 31, 2015, together with the reports of the directors, auditors and the audit committee thereon. At the AGM, shareholders of Sterling Bank plc gave their approval for the board to pay 9 kobo dividend for every share of 50kobo.

Asue Ighodalo, chairman, Sterling Bank plc told shareholders at the meeting that “At Sterling Bank plc, we will continue our focus on building key capabilities. We will actively support policies designed to build a sustainable Nigerian economy over the next decade through the provision of inclusive customer-focused services.”

“We count on your unflinching and invaluable support, while affirming our continued commitment as faithful stewards of your investments”, Ighodalo further told shareholders.

Yemi Adeola, managing director/chief executive officer, Sterling Bank plc also told the bank’s shareholders at the meeting that “Our strategy remains clear for 2016, and I am pleased to inform you that we are well on course to achieve our set goals”.

“As we look to the coming years in the life of our institution with hope and optimism, we acknowledge the reality that things are not always going to be easy. However, despite the various challenges the country is currently witnessing, we retain our faith in Nigeria and its abilities to constantly survive the odds,” Adeola said.

The bank’s performance in 2015 was a testament to the underlying resilience of its business model. Gross earnings rose by 6.3 percent in full year 2015 to N110.19billion compared to 2014 figure.

Also in spite of the regulatory headwinds and downturn in the Nigerian economy, Sterling Bank Plc recorded growth in virtually all its performance indicators for the year ended December 31, 2015, pushing up profit before tax by 2.5 per cent to N11billion.

Similarly, profit after tax rose by some 14.3 per cent to N10.3 billion due to a higher retention of organic capital compared to the previous period.

Non-interest income grew by 13.7 per cent from N25.7 billion in 2014 to N29.3 billion largely due to a 57percent increase in trading income. Confirming the efficiency of the lender’s management, operating expenses decreased by 1.9 per cent from N50.6billion to N49.7 billion.

Net interest income however, declined by 8.1 per cent from N43.0 billion to N39.5 billion, driven by an 18.5 per cent increase in interest expense resulting in a 630 basis points reduction in net interest margin to 48.9 percent.

Cost-to-Income Ratio improved by 140 basis points to 72.2%, Capital Adequacy Ratio stood at a record high of 17.5%, while liquidity buffers remained strong as the Bank grew its After Tax Profit by 14.3%.

Amid this feat, Sterling Bank plc is cautiously optimistic on the outlook for the 2016 financial year.