Posted by By SEUN ADESIDA on
Sterling Bank Plc has posted gross earnings of N17.39 billion for the half year ended March 31, 2008. The unaudited results made available by the Nigerian Stock Exchange (NSE) Friday indicated that pre-tax profit also grew by 178 per cent. The result further consolidated the raised investors' hope for brighter future with an impressive half year financial results.
Sterling Bank Plc has posted gross earnings of N17.39 billion for the half year ended March 31, 2008. The unaudited results made available by the Nigerian Stock Exchange (NSE) Friday indicated that pre-tax profit also grew by 178 per cent. The result further consolidated the raised investors' hope for brighter future with an impressive half year financial results.
This depicts a 79 per cent increase over the N9.705 billion recorded in the corresponding period of 2007. Apparently as a result of efficient resources management, all the bank's financial indicators witnessed an upward trend. While pre-tax grew from N1.329 billion to N3.69 billion, post-tax profit moved by 117 per cent from N1.112 billion to N3.082 billion.
Further analysis of the performance showed that Sterling Bank has already surpassed its profit for the full year ended September 30, within six months. However, with a net profit of N3.082 billion in the six months to March 31, 2008, the bank is already 59 per cent ahead of its 2007 full year performance.
In an explanatory note to the NSE, the board of Sterling Bank assured that barring any unforeseen circumstances, the impressive growth trend would be improved upon considerably in the remaining part of the year. Analysts say that given a profit of N3.08 billion in six months, the bank had recorded an average profit of about N513 million every month.
'If the same profit level is maintained or improved upon, Sterling Bank may end the year with a profit of over N6 billion. This will be a remarkable feat for the bank," an analyst said. The improved performance of the bank did not come to analysts and investors as a surprise given the efforts the management has put into its operations since its consolidation two years ago.
The Group Managing Director of the bank, Yemi Adeola, recently said the bank had in the last two years consolidated on the gains of being driven by a sound management team. 'We have been laying a solid foundation for two years now. We can only grow from strength to strength in three core areas - investment banking, trade finance and consumer banking. State Bank of India, which is noted for its acumen in trade, is the single largest shareholder and we are leveraging on its strength.
'We now have over 100 branches and our clientele is growing by the day. We have done what many banks in Nigeria have not done. We have cleaned our books. We have also deliberately chosen to grow steadily because we wanted to build an institution that we will be proud of", he recently told journalists in Lagos.
Capital market operators believe that with expected higher capital base, Sterling Bank will perform better and satisfy all stakeholders more. The bank is planning to access the market for fresh funds. Shareholders of the bank had last year approved the re-capitalisation exercise. 'Going to the market for funds is not a problem. If you talk of experience, those who run Sterling Bank are some of the best and brightest in the industry. It is not about capacity and capabilities or abilities. It is about building an institution that will be the pride of shareholders and employees", the Sterling Bank boss had said.