Following its strategic plans,Sterling Bank Plc has recorded a 60 per cent growth in net earnings during the financial year ended December 2011, representing a growth of N6.7 billion.

Corporate Action of Sterling Bank for the year ended December 31, 2011 released on the floor of the Exchange showed an appreciable growth in incomes and profitability as well as improvements in assets quality and returns.

Gross earnings hinged on the back of 110 per cent growth in non-interest income and 23 per cent growth interest-based incomes to N45.2 billion in 2011 as against N30.4 billion in 2010, indicating an increase of 49 per cent.

Interest income had increased from N24.5 billion in 2010 to N30.2 billion. Operating income also grew by 32 per cent to N27.0 billion in 2011 compared with N20.4 billion in 2010. Profit after tax and extra-ordinary income thus jumped by 60 per cent to N6.7 billion in 2011 as against N4.2 billion in 2010.

The bank emerged with a stronger balance sheet as the proportion of bad loans to total loans and advances surpassed the Central Bank of Nigeria (CBN)’s industry target of 5.0 per cent at 4.8 per cent.

Non-performing loans had stood at 10.7 per cent of gross loans in 2010. Sterling Bank’s total balance sheet nearly doubled from N259.6 billion in 2010 to N504.4 billion in 2011.

Total deposits doubled by 104 per cent to N406.5 billion as against N199.3 billion while the bank expanded its risks assets as net loans and advances rose by 60 per cent to N163.5 billion from N101.9 billion in 2010.

 Further analysis showed a robust perfor-mance outlook. Return on average equity increased from 17 per cent in 2010 to 20 per cent. Liquidity ratio improved from 47 per cent to 64 per cent while capital adequacy ratio improved from 13 per cent to 17 per cent.

Based on the performance of the bank board is recommending distribution of about N1.6 billion as cash dividends to shareholders, representing a dividend per share of 10 kobo.
Speaking on the results, Managing Director/CEO, Sterling Bank, Mr. Yemi Adeola said the bank’s performance in 2011 underscored its ability to attain growth despite challenging economic conditions.
He noted that the bank had harnessed the opportunities created by the successful business combination with ETB, which put it as a stronger institution with a network of almost 200 branches.
Adeola reiterated the commitment of the board and management to unlocking values for shareholders as the bank consolidates its operations to focus on core commercial banking business in line with the new regulatory regime of the apex bank.