Sterling Bank sets four targets to improve profitability

By Peter Egwuatu

In its bid to enhance profitability and shareholders value for the future,Sterling Bank Plc has mapped out four inter-related targets for 2011, even as shareholders sought for more branches.

The targets include : to grow profits with a disciplined balance sheet; to improve cost efficiency without neglecting sound investment in people and assets; to strengthen the Bank’s operational and credit risk framework; and to provide a competitive return on equity for shareholders.

Group Managing Director/CEO, Sterling Bank Plc, Mr.Yemi Adeola disclosed this to shareholders at the Bank’s 49th Annual General Meeting (AGM) held on Tuesday in Lagos.

He stated that despite the challenging environment experienced in 2010, Sterling Bank was able to improve key performance metrics compared with the previous year.

According to him, “ our capital position grew through an improvement in operating performance, strong earnings, improved asset quality and strengthened liquidity.

The Bank’s performance measured by Return on Average Equity (RoAE) remains one of the best in the sector, serving as a testament to the commitment of our staff and the support we have enjoyed form our customers.”

Commenting on the financial performance for the year ended December 31, 2010, Adeola said,

“Gross earnings declined by 8 per cent to N34.3 billion from N37.4 billion; Funding costs declined by 33 per cent to N11.1 billion from N16.5 billion in 2009(annualised) feeding through a 32 per cent improvement in Net Interest Margins; Operating expenses reduce by 11 per cent to N15.8 billion from N17.7 billion in 2009 (annualised) reflecting progress in the Bank’s cost discipline and efficiency programmes introduced in 2009.”

Other performance shows a Profit After Tax (PAT) of N5 billion in 2010 as against a net loss of N7.2 billion. The Bank’s total assets grew by 25 per cent toN277.1 billion from N221.3 billion, spurred by slight improved economic conditions.

The deposits base grew by 26 per cent to N203.1 billion from N161.3 billion , while Net loans and advances including advances under finance lease grew by 25 per cent to N103.8 billion from N82.9 billion.

Speaking further, Adeola commended the shareholders for their loyal support and advice to the bank, promising that their interest would be protected at all time.

Meanwhile, the shareholders commended the Board and management for the performance of the Bank during the period under review

Speaking, Sir Sunny Nwosu, National Coordinator, Independent Shareholders Association of Nigeria (ISAN) said, “we shareholders commend the performance of the bank and as well advise that the independent directors stay clear from holding the shares of the bank nor have accounts with the bank so as not to compromise with their responsibility.”