Sterling Bank Plc on Friday reported a profit after tax of N3.1 billion on gross earnings of N39.8 billion for the first quarter ended 31st March 2018.
The impressive first quarter net income is an improvement on net income of N1.9 billion for the corresponding period of 2017, representing an increase of 65.2 per cent.

A further review of the financial performance indicated that net loans and advances increased by two per cent to N609.8 billion, customer deposits rose by 4.9 per cent to N718.5 billion, while total assets (excluding contingent liabilities) were relatively flat at N1.05 trillion.

Commenting on the financial performance, Abubakar Suleiman, the Chief Executive Officer of the bank, said: “We are pleased to be starting 2018 on a good note, by sustaining the strong performance delivered in 2017 with growth across key financial indices. This demonstrates strength and is indicative of our outlook for the financial year.”

Remarkably, the bank’s gross earnings grew by 39.3 per cent to N39.8 billion from N28.6 billion in the first quarter of 2017, with the Improvement in earnings directly linked to measured growth in retail lending as well as a 90 per cent increase in transaction banking revenues.

“Our net operating income also grew by 34.2%, aided by a 50% reduction in impairment charges. We continued to experience a significant improvement in asset quality as cost of risk declined by 140 basis points to 0.8% from 2.2% in 2017. Overall, Profit after Tax (PAT) rose by 65.2% to N3.1billion resulting in a 410 basis point increase in Return on Average Equity to 12.8%,” Suleiman further stated.

He added that Sterling Bank is actively mobilising private sector capital to solve some of the most pressing social and economic needs of Nigerians.

He said: “We have aligned the bank’s business model to offer financial and non-financial solutions to key areas which are at the HEART of Sterling Bank – Health, Education, Agriculture, Renewable Energy, and Transportation.”

In the period under review, the bank successfully launched Farepay, a contactless payment system as part of its transport sector intervention in Lagos State.

Unveiled by Yemi Odubiyi, Executive Director, Operations and Services, at a grand launch event in Lagos, the payment system which is ensuring efficient fare collections will plug pilferage and revenue leakage making it possible for the sector to attract the much-needed capital investment required to transform it.

Sterling Bank’s goal is to replicate this nationwide as it remains resolute in its conviction that the transport sector is an important catalyst for socio-economic growth and sustainable development.

Investors upbeat on Sterling Bank’s growth


by Iheanyi Nwachukwu | May 16, 2018 2:09 am

Investors in Sterling Bank Plc shares are impressed with the bank’s stock recording over 52percent year-to-date (ytd) price gain amid its impressive earnings in full year 2017 and first-quarter (Q1) 2018 records.

Remarkably, the bank reported a profit after tax of N8.5 billion for the financial year ended December 31, 2017 as against N5.2 billion in 2016, representing an increase of 65 percent in profitability. Gross earnings increased by 19.8percent to N133.5 billion in 2017 compared to N111.4 billion in 2016. Sustaining the impressive performance, Sterling Bank reported a profit growth of 65.2 percent for the first quarter ended 31st March 2018.

Analysts and stockbrokers at a recent Facts Behind the Figures session of the bank at the Nigerian Stock Exchange were unanimous in their verdict that the bank’s coherent strategy, business transformation initiatives, strong management team, and disruptive solutions will lead to better than expected future results for the mid-sized lender.

Abubakar Suleiman, chief executive officer, Sterling Bank Plc, affirmed the bank’s continued growth across key financial indices in Lagos Bourse while addressing stockbrokers, investment analysts and the media during the bank’s Facts Behind the Figures session at the NSE.

Doyen of Stockbrokers in Nigeria, Willie Sam Ndata lauded Sterling Bank for explaining the facts behind the figures in its financial statements with the stakeholders in capital market. “The CEO of Sterling Bank has spoken to the numbers and we are hopeful that he will continue to provide the market with useful information. The solutions you have highlighted explain the increased customer growth recorded by bank. We are sure the bank will deliver value to all stakeholders going forward.”

The lender’s 2017-2021 mid-term strategy indicates the intent to grow market share of deposits to 5percent, diversify its retail funding base, record non-performing loans below its peer group average as well as Return on Average Equity (ROAE) above peer group average.

Suleiman disclosed that the bank is also looking to achieve diversified income streams with top quartile position in all its operating areas, double digit revenue growth on yearly basis and reduce cost of funds to less than five percent.

On the bank’s long-term strategy, the CEO disclosed that Sterling Bank intends to become a globally competitive financial services franchise by financial and non-financial measures; adding that it would continue to operate a fully sustainable business model with institutionalized processes that would outlive the stewardship of current owners and managers.

He also reiterated the bank’s commitment to its primary role of financial intermediation through intervention in sectors that will create jobs, improve living standard and bring about economic growth for the country. Abubakar Suleiman identified the priority sectors as Health, Education, Agriculture, Renewable energy and Transportation.

Speaking on the bank’s strategic initiatives, Yemi Odubiyi, Executive Director, Operations and Services, said Sterling Bank would manage risk, balance sheet and capital to deliver superior returns to shareholders; create a learning organisation to optimise productivity as well as operations and technology to drive better control, manage costs, complexity and risk. He said all these would enable the bank to deliver excellent customer service and drive efficiency and sales through robust digital and payments capability.

According to Odubiyi, Sterling Bank intends to become a consumer banking franchise of choice for Nigerians through the provision of customer-centric and disruptive solutions such as Farepay, Specta, Switch, Snapcash, Social Lender, Saf Retail and i-invest, among other products that are changing the ways they access financial services.

He said the bank of the future must understand the consumer of the future and address their needs, adding that the bank will adopt agile methodology and journey thinking to improve speed to market and the customer’s experience.

http://www.businessdayonline.com/investors-upbeat-sterling-banks-growth/

Sterling Bank wins Banker’s Award for Banking in the Community

Sterling Bank Plc, Nigeria’s leading commercial bank, has won the Banking in the Community Award at the Bank of the Year 2019 Awards by The Banker in London, United Kingdom. The bank was recognised at the awards recently for its landmark Sterling Agent Banking Edu-Finance Scheme which seeks to ease the burden of upfront payments of school fees on parents and provide funding for schools to run their businesses.

The Bank of the Year Awards is an annual awards event organised by The Banker to recognise the top financial institutions in the world. The Banker is a British English-language monthly international financial affairs publication owned by The Financial Times Limited.

Commenting on the award, Divisional Head, Retail and Consumer Banking, Sterling Bank, Mr. Shina Atilola, said: “We are proud of this particular award because even in industrialised countries or developing economies, there is still the challenge of including their poorest members in the financial system.”

He noted that The Banker Awards has validated Sterling Bank’s status as the number one in the financial inclusion segment. According to him, the bank got the recognition by performing social functions that include reducing poverty, boosting prosperity and also ensuring a responsible and sustainable path to national growth.

Atilola said the Sterling Agent Banking Edu-Finance Scheme was introduced to ease the burden of about 70 percent of Nigerians who receive wages weekly and are unable to make upfront payments of school fees on behalf of their children. The bank is able to assist this category of Nigerians by providing loans of between N25,000 and N100,000 per term to pay school fees.

“We were equally providing funding for the schools to run their businesses so that they could afford operating expenses such as paying staff salaries and have enough savings to venture into capital projects such as buildings and acquisition of equipment while also ensuring a child gets an education,” he said.

He said the bank was able to develop and grow the product by ensuring that agents who resided within the customers’ communities served customers at their homes and trade stores, “making it convenient to enroll and benefit from the scheme unlike competitors who use tech-based platforms which most of these customers do not have, cannot afford or cannot use.”

The bank also charged an interest rate of three percent monthly which was less than the prevailing rate of five percent monthly in the Nigerian market while also giving additional benefits such as the distribution of free school bags, water holders and raincoats to each child for the payment of school fees as requested by the parent.

The Sterling Agent Banking Education Finance Scheme was launched on September 3, 2018, and has till date impacted more than 8,000 students, 5,800 parents and 4300 schools, a development which has enabled schools to have a substantial inflow of money to aid administration and management of business due to the funds paid by the bank.

In the first phase of the project, the bank recorded a participation count of 8,300 and disbursed N275 million to 20 states in the southern part of Nigeria. An additional N125 million was disbursed in the second phase to new customers from 18 states in the north with an 80 percent repayment rate and a non-performing loan rate of 10 percent.

The bank continued to hold financial literacy campaigns for continuous enlightenment and face-to-face visits.

https://dailypost.ng/2019/12/20/sterling-bank-wins-bankers-award-for-banking-in-the-community/