Sterling Bank Plc (NSE: STERLNBANK/ Reuters STBP.LG – the “Bank”) today released its audited financial results for the six months ended June 30, 2010.
Sterling Bank has sustained the drive of its first quarter performance to make solid recovery in the second quarter. These results show a return to positive trends in the Bank’s businesses, which were temporarily disrupted by the unique circumstances of 2009.Highlights of the results were:
- Profit before Tax for the half year rose to N4.2 billion from N(6.9) billion in June 2009
- Cost of funds reduced to N5.9 billion from N8.8 billion (-33%)in the comparable period of 2009 feeding through a (17%) improvement in Net Interest Margins
- Gross earnings declined to N16.3 billion from N18.5 billion (-12%)on the back of lower volumes
- Operating expenses decreased from N8.4 billion to N7.7 billion (-8%) while cost-to-income ratio fell from 87% to 75% (-14%) reflecting progress in the implementation of cost saving strategies and improved efficiency
- Deposits reduced from N161.3 billion in December 2009 to N145.5 billion (-10%) as Management prioritized the achievement of an optimal deposit mix and improved funding costs over nominal balance sheet size
- Net loans and Advances including Advances under Finance Leases) fell to N81.6 billion from N82.9 billion (-2%) recorded in December 2009
- Writeback on credit provisions for the half year stood at N1.6 billion
- Liquidity ratio was 39.7%, Capital Adequacy ratio was 14.1%, while annualized return on average equity was 34.2%.
The latest results are proof that the implementation of its strategic and operational review, as a result of last year’s economic downturn, is succeeding. An unrelenting focus on efficiency and asset quality standards underpin the Bank’s performance in the first six months of the year.
We are impressed by these numbers. Coming from our position last year, Sterling Bank had some ground to recover and we are doing just that. There is still some way to go but overall, we are very pleased to show that the Bank is making excellent progress just as we said we would in our first quarter result,” said Mr. Yemi Adeola, the Managing Director/CEO of Sterling Bank.
The full earnings release may be read here.
