Sterling Bank Plc on Monday declared profit after tax of N10.3 billion for the financial year ended December 31, 2015.
This was against N9.004 billion declared in the corresponding period of 2014, an increase of 14.3 per cent.
The report is contained in the company’s audited result released by the Nigerian Stock Exchange (NSE) in Lagos.
The bank’s profit before tax increased to N11.02 billion from N10.747 billion achieved in 2014, representing a surge of N269 million.
Its interest income stood at N70.93 billion in contrast with N80.91 billion, while the net interest income down from N43.016 billion to N39.541 billion.
The bank’s operating income moved from N68.762 billion in the preceding year to N68.826 billion.
The analysis of the bank result showed that total assets fell from N824.539 billion to N799.451 as at December 2015 while total liabilities increased from N739.824 billion reported in the preceding year to N799.451 billion.
The board of directors proposed dividend of 9k per share against 6k declared in the previous year.
The bank’s non-interest income grew by 13.7 per cent to N29.3 billion from N25.7 billion in 2014 due to 57 per cent increase in trading income.
The bank’s operating expenses decreased by 1.9 per cent to N49.7 billion from N50.6 billion in 2014 confirming the efficiency of the lender’s management.
Commenting on the financial results, Mr Yemi Adeola, the bank’s Managing Director/ Chief Executive, said that 2015 performance offered a clear validation of the underlying resilience of its business model.
Adeola said that the bank managed to maintain a delicate balance between delivering on near term goals and laying the foundation for the future.
“Asset quality remained resilient with non-performing loans (NPL) below the maximum regulatory threshold of five per cent despite a significant reduction in the loan book,” he said.
On the 2016 outlook, Adeola said that current macro-economic challenges present its own opportunities for agile and dynamic operators.
“We recognise that re-structuring of the sort that the current Federal Administration is pursuing takes time but like many other Nigerian businesses, we view the pursuit of economic self-reliance as commendable.
“ Consequently, we remain optimistic for the future but are not under any illusion that the near term operating environment would be more favourable as we expect some policy volatility in the course of the year,” he said.
