The Nation Newspaper

Tag: Sterling Bank

  • Sterling Bank targets N56.2b hybrid capital

    In its bid to ensure the successful implementation of its medium to long term strategic objectives in a highly competitive industry, Sterling Bank recently told shareholders of plans to raise N56.2 billion between this year and 2014, by way of a hybrid of instruments. The offers, which begins soon, includes Tier 1 capital of N12 billion by way of rights to existing shareholders, and a private placement of N19.2 billion, which process began in the first quarter of the year. The Tier 2 capital of N25 billion, which will commence in the third quarter of 2013, is slated for completion in the first quarter of 2014.

    The chairman, Alhaji Suleiman Adegunwa, told shareholders at the annual general meeting that the bank has made significant progress in the last one year, especially in its integration programme following the successful merger with Equitorial Trust Bank (ETB). He said the management has successfully consolidated the two banks into a single platform, allowing it to streamline its processes, maintenance and development costs, hardware and software as well as improve the time-to-market for developing its products and services.

    His words: “We are aware that there is still a lot to be done to create sustainable value for all our stakeholders, we will continue to focus on improving efficiency across board and strengthen integrated risk and capital management systems.”

    The Managing Director of the bank, Yemi Adeola, said the bank has reached significant milestones since 2006 as it has “grown from a balance sheet size of N111 billion to N580.2 billion in 2012, despite a slowdown in economic activities arising from the global economic meltdown, security challenges, strikes, floods and a contraction in the oil sector.” The bank’s 2012 earnings rose by 44 per cent to N68.9 billion, driven by a 66 per cent growth in interest income; net operating income also rose by 51 per cent on the back of a 43 per cent improvement in net interest income. Non-interest income was boosted by growth in commissions and fees and trading income.

  • Sterling Bank targets double-digit growth

    Sterling Bank Plc would seek to sustain its double-digit growth in revenue in 2013, creating more robust platform for the bank to deliver stronger profit and returns, the management of the bank has said.

    In a preview of the 2013 performance outlook, Managing Director, Sterling Bank Plc, Mr Yemi Adeola, said management of the bank would focus on achieving double-digit growth in gross earnings while growing an efficient balance sheet and low-cost funding that would magnify bottom-line performance.

    On the heels of the 54 per cent and 108 per cent growth in revenue and pre-tax profit respectively in 2012, Adeola said the management of the bank recognised that there is more work to be done.

    “This year, we will focus on the agenda we have set out across our various business lines. In particular, we will continue to streamline and standardise our processes, drive low-cost funding through our retail business, grow an efficient balance sheet, achieve double digit revenue growth and ensure a customer-centric approach in our entire interface with customers,” Adeola said.

    He outlined a six-pillar strategic plan that would drive robust growth including asset strategy, customer acquisition, performance management, retail strategy, retail structure, retail brand and delivery.

    According to him, the bank would revamp its retail strategy to focus on customer acquisition and low cost deposit mobilisation while ensuring effective use of alternative channels to serve its teeming retail customers.

    He added that the bank would deploy a robust customer relationship management solution to aid understanding of customer behaviour and preferences for effective deployment of the bank’s array of products and services.

    He noted that the bank would ensure continuous automation and streamlining of processes to improve cost efficiency. It would also conclude the remodeling of branch infrastructure and energy sources to reduce cost of doing business.

    “The Sterling Bank of today is stronger, more agile and more exciting. Given the passion and commitment of our people, we are optimistic about the future,” Adeola said.

    The assurance of improved performance came on the heels of first quarter report, which showed strong growths across key indices.

    Key extracts of the profit and loss accounts for the first quarter ended March 31, 2013 showed that Sterling Bank’s profit after tax rose by 96 per cent while profit before tax increased by 85 per cent. The net profit growth signaled robust returns outlook for investors as earnings per share rose by 89 per cent from 9.0 kobo recorded in first quarter 2012 to 17 kobo in first quarter 2013.

    The report, prepared in line with the International Financial Reporting Standards (IFRS), showed gross earnings of N19.84 billion as against N16.21 billion recorded in comparable period of 2012. Profit before tax jumped from N1.63 billion to N3.02 billion while profit after tax leapt to N2.72 billion as against N1.39 billion.

    The report underlined continuing improvement in the bank’s cost efficiency and growing market share. Pre-tax profit margin was 15.2 per cent in first quarter 2013 as against 10.1 per cent in comparable period of 2012. Deposits increased by 13.1 per cent within the three months from N466.85 billion recorded in December 2012 to N528.10 billion in March 2013. Total assets grew by 11 per cent to N645.07 billion as against N580.23 billion recorded in December 2012.

    The first quarter report came on the heels of the audited report and accounts for the year ended December 31, 2012, which showed a well-rounded performance with significant growths in incomes, profitability and assets management and efficiency.

    Gross earnings grew by 51 per cent, pre-tax profit doubled by 108 per cent while the proportion of non-performing loans to total loans portfolio improved considerably to negligible 3.8 per cent as against 4.8 per cent in previous year. Net interest margin improved from 5.0 per cent to 5.2 per cent underlying increasing profitability of the bank’s core banking operations in spite of the tough operating environment.

    Gross earnings stood at N68.9 billion in 2012 as against N45.7 billion in 2011. Adjusted for income from discontinued operations, profit before tax grew by 108 per cent to N7.5 billion in 2012 as against N3.6 billion in 2011. With net profit after tax of N6.95 billion in 2012, the board of director has recommended 100 per cent increase in cash dividends to shareholders from 10 kobo paid for the 2011 business year to 20 kobo for 2012.

  • Sterling Bank Sketchamania grand finale rocks Unilag

    Sterling Bank Sketchamania grand finale rocks Unilag

    Following months of scouting the nations tertiary institutions for budding designers, Sterling Bank, on Saturday, April 20, held the finale of its fashion competition, Sterling Bank Sketchamania Challenge for undergraduates.

    Held at the main auditorium of the University of Lagos, Unilag, and compered by the duo of Akpororo and Deza, the event featured a high dose of comedy, music and fashion. Among the contestants were Ayodeji Balogun (Yabatech), Sipe Olanrewaju (Unilag), Stephen Wayne (Unilag), Kayode Arigbede (Unilag), Amina odey (Radford University), Anyogu Enefelicia (UNN), Aimanoshi Dania (Unilag), Kayode Durosimi-Etti, Seyi Adegoke (Unilag) as well as Yabatech’s Stavely Temidayo

    With music interludes provided by the badoo himself, Olamide, Lily John and a couple of others, the competition, according to the bank’s group Head of Strategy & Communications, Shina Atilola, was held in a bid to discover and celebrate the creativity of the Nigerian youth.

    “The name Sterling Bank simply symbolises excellence and standing out, so we are trying to marry this vision of being sterling with positioning our future leaders so that they can be successful. We realise that most Nigerian undergraduates have talents but there is nobody to project them forward and because of that, we are putting down a foundation to project them forward so that they can be celebrated in the future,” Atilola stated.

    Designed as an annual event, he revealed that Sketchamania has already been slated to run for the next five years following which it will be reviewed. Among the judges for the competition were Uche Nnaji of Ouch Couture and female rapper cum designer, Sasha P. Following a stiff challenge which saw models trotting the runway with the sketches, now turned into outfits, Stephen Wayne emerged winner of the star prize of a million naira. Coming second and third respectively were Sipe Olanrewaju, going home with N500, 000.00 and Steavely Temidayo winning N250, 000.00.

     

     

  • Sterling Bank doubles profit, dividend

    Sterling Bank Plc recorded a well-rounded performance in 2012 as the bank rode on the back of increased market share and robust credit risk management to double its profit from core operations.

    The impressive bottom-line performance underpinned 100 per cent increase in cash payouts, giving the bank the highest current dividend yield among banks that have so far released their reports.

    With a net profit after tax of N6.95 billion in 2012, the board of directors has recommended a 100 per cent increase in cash dividends to shareholders from 10 kobo paid for the 2011 business year to 20 kobo in 2012. In spite of the doubling in cash payouts, the strong growth in net earnings will still see the bank ploughing about 55 per cent of net earnings into reserves for business growth. At current market price, the recommended dividend represents a dividend yield of 7.3 per cent, the highest by any bank so far.

    Audited report and accounts of the bank for the year ended December 31, 2012, prepared in line with the International Financial Reporting Standards (IFRS) and approved by all financial services regulatory agencies, was presented to the investing public at the Nigerian Stock Exchange (NSE) yesterday.

    The report showed that the bank consolidated its growth and seamlessly harnessed the synergies from its recent acquisition with both outward and underlying performance indicators indicating marked improvements.

    While gross earnings grew by 51 per cent, profit from core operations (excluding the effect of one-off disposal of subsidiaries in 2011) increased by 108 per cent; the proportion of non-performing loans to total loans portfolio improved considerably to 3.8 per cent as against 4.8 per cent in the previous year. Net interest margin improved from 5.0 per cent to 5.2 per cent underlying increasing profitability of the bank’s core banking operations in spite of the tough operating environment.

    Gross earnings stood at N68.9 billion in 2012 as against N45.7 billion in 2011. The top-line was driven substantially by improving core banking operations and larger market share as net interest income rose by 43 per cent from N16.7 billion to N23.9 billion. Non-interest income also increased to N15.3 billion as against N13.4 billion in the previous year. Net operating income after impairment loss rose by 51 per cent to N39.5 billion as against N26.1 billion. Adjusted for income from discontinued operations, profit before tax grew by 108 per cent to N7.5 billion in 2012 as against N3.6 billion in 2011.

    Besides, the bank’s balance sheet size and structure improved remarkably during the year. Total assets increased from N504 billion to N580.2 billion. Customer deposits increased by 18 per cent to N463.7 billion as against N392.0 billion while net loans and advances grew by 42 per cent from N162.1 billion to N229.4 billion. Shareholders’ funds increased by 14 per cent to N46.6 billion compared with N41.1 billion in the previous year.

    Managing director, Sterling Bank Plc, Mr. Yemi Adeola said the 2012 report reflects the enhanced capacity of the bank following the business combination with Equitorial Trust Bank (ETB).

    He described the report as a delight, noting that the growth was driven by a marked improvement in core banking operations whilst the bank maintained a tight grip on asset quality, with non-performing loans dropping to its lowest rate of 3.8 per cent despite a 42 per cent growth in loans to N229.4 billion.

    According to him, the bank has been implementing several key initiatives to broaden its customer base and enhance customer satisfaction.

    “Going into 2013, our goal is to reduce our cost of funds, enhance our brand presence in our target markets and improve operating efficiency. We have also revamped our retail strategy through a number of initiatives. Our physical infrastructure is being upgraded to capture a high-street retail look and feel; and restructured along the lines of hub and spoke delivery platforms,” Adeola said.

    He reassured that ongoing initiatives would make the bank more efficient and profitable, reiterating the commitments of the board and management to continuously deliver better and competitive returns to shareholders.

    The earnings report triggered massive bullish rally on Sterling Bank’s shares at the NSE yesterday. Sterling Bank’s market consideration rose by 9.45 per cent, adding 26 kobo to close at N3.01 per share. Sterling Bank was the second most active stock with a turnover of 54.93 million shares worth N159.44 million in 243 deals.

    Equities generally sustained positive market sentiments with 38 advancers against 26 decliners. Okomu Oil Palm led the advancers with a gain of N7.97 to close at N87.72. Nigerian Breweries followed with addition of N3 to close at N169. Seven-Up Bottling Company rose by N1 to close at N50. Guinness Nigeria added 98 kobo to close at N266 while Beta Glass gathered 94 kobo to close at N10.43 per share.

    However, Presco topped the losers’ list with a drop of N2.50 to close at N22.50. MRS Oil and Gas trailed with a drop of N2.48 to close at N22.40. Guaranty Trust Bank lost N1.77 to close at N25.68 while PZ Cussons Nigeria fell by 71 kobo to N36 per share.

    Investors staked N6.45 billion on 516.34 million shares through 7,897 deals. Banking stocks accounted for 365.70 million shares worth N3.68 billion in 3,893 deals.