sterling bank earnings release - h1 2012 unaudited ifrs results

7/31/2019 Sterling Bank Earnings Release - H1 2012 Unaudited IFRS Results

1/6

1

EARNINGS PRESS RELEASE July 26, 2012

STERLING BANK PLC REPORTS IFRS UNAUDITED RESULTS FOR THE SECOND

QUARTER ENDED JUNE 30, 2012

Pre-Tax Profit Rises 38% to N3.3 billion

Lagos, July 26, 2012 Sterling Bank Plc (NSE: STERLNBANK/ Reuters: STBP.LG) the

Bank - today reported its half year unaudited results for the second quarter ended

June 30, 2012.

Half Year Management Statement to Investors by Yemi Adeola, Managing Director /

CEO:

I am pleased to report on the steady progress made by Sterling Bank in the first

six months of the year. Top-line revenues rose by 59% to N32.7 billion on the back

of improvements in interest income, which grew by 81%. A cursory look at the

other headline figures reveals a 70% increase in net interest income, 49% growth

in operating income and 38% rise in profit before and after tax.

During the reporting period, Managements focus was on the optimization of our

balance sheet. This is evident from the 13% growth in loans and advances, 600

basis points improvement in loan-to-deposit ratio, 30 basis points increase in netinterest margin and 180 basis points improvement in asset quality year-on-year.

These results have been achieved against the backdrop of difficult global and

domestic economic conditions, which continue to impact real sector

investment, foreign investor participation, consumer confidence, and market risk

appetite. The current results also come in the wake of Sterling Banks recent

integration with the former ETB, and the associated costs arising from technology

upgrade and brand standardization; the benefits of which are expected to kick-

in during the last quarter of the year.

Over the next six months, Sterling Bank will sustain its drive towards the generation

of quality risk assets and low-cost deposits; matched with efficient customer

service to enable us achieve our well-articulated corporate goals.


2/6

2

Financial Highlights for the Second Quarter Ended June 30, 2012

Income Statement

Gross earnings rose 59% to N32.7 billion (H1 2011: N20.5 billion) Net interest income after impairment rose 89% to N12.1 billion

(H1 2011: N6.4 billion)

Non-interest income increased 7% to N6.3 billion (H1 2011: N5.9 billion) Operating income rose 49% to N18.5 billion (H1 2011: N12.4 billion) Operating expenses increased 52% to N15.2 billion (H1 2011: N10.0 billion) Profit before tax grew 38% to N3.3 billion (H1 2011: N2.3 billion)

Statement of Financial Position

Total assets increased 1% to N511.8 billion (Dec. 2011: N504.7 billion) Customer deposits declined 2% to N384.7 billion (Dec. 2011: N392.0 billion) Net loans & advances grew 13% to N186.4 billion (Dec. 2011: N164.3 billion)

Financial Ratios

Net interest margin of 6.3% (H1 2011: 6.0%) Non-performing loan ratio of 3% (Dec. 2011: 4.8%) Net Loan-to-deposit Ratio of 48% (Dec. 2011: 42%) Liquidity Ratio stood at 67% (Dec. 2011: 64%) Capital Adequacy Ratio of 16% Annualized Return on Average Equity of 14%


3/6

3

CONTACTS

Investor Contacts Media Contact

Yemi Odubiyi Shina Atilola

M: +234 803 535 0991 M: +234 802 342 3011

E: [email protected] E: [email protected]

Abubakar Suleiman

M: +234 803 535 1172

E: [email protected]
mailto:[email protected]:[email protected]


4/6

4

June 2012 December 2011

ASSETS N'000 N'000

Cash and cash equivalents 39,395,939 66,591,200

Non trading pledged assets 55,435,200 49,952,937

Loans and advances to customers 186,377,853 164,276,761

Investment securities

- Available for sale securities 3,700,270 4,333,474

- Held to maturity securities 171,734,137 165,406,852

Property and equipment 8,911,381 8,930,813

Intangible assets 83,102 143,115

Deferred tax assets 6,465,359 6,465,359

Other assets 39,660,387 38,621,008

TOTAL ASSETS 511,763,628 504,721,517

LIABILITIES

Deposits from banks - 17,595,012

Deposits from customers 384,659,564 392,048,495

Current tax liabilities 713,210 677,926Other borrowed funds 31,610,876 27,425,740

Debt securities 4,562,429 4,562,000

Other liabilities 47,165,538 20,803,946

TOTAL LIABILITIES 468,711,617 463,113,119

CAPITAL AND RESERVES

Share capital 7,851,931 7,851,931

Share premium 18,689,788 18,689,788

Retained earnings 3,095,320 1,652,900

Other components of equity 13,414,971 13,413,780

TOTAL EQUITY ATTRIBUTABLE TO

OWNER OF THE BANK 43,052,010 41,608,399

TOTAL LIABILITIES AND EQUITY 511,763,628 504,721,517

STATEMENT TO THE NIGERIAN STOCK EXCHANGE AND SHAREHOLDERS ON

THE UNAUDITED IFRS RESULTS FOR THE HALF YEAR ENDED JUNE 30, 2012

The Board of Sterling Bank Plc presents the Bank's IFRS unaudited results for half year ended June 30, 2012.

STATEMENT OF FINANCIAL POSITION


5/6

5

June 2012 June 2011 December 2011

N'000 N'000 N'000

Interest income 26,340,314 14,586,043 31,376,231

Interest expense (14,114,192) (7,413,238) (15,609,253)

Net interest income 12,226,122 7,172,805 15,766,979

Net Impairment charges (102,211) (741,626) (2,058,495)

Net interest income after impairment 12,123,911 6,431,179 13,708,483

Fee and commission income 4,389,206 3,587,503 6,441,793

Trading income 506,511 381,477 536,459

Other operating income 1,453,681 1,960,629 7,973,082

Operating income 18,473,309 12,360,788 28,659,817

Personnel expenses (4,403,196) (3,263,581) (6,527,161)Depreciation and amortisation (1,340,331) (616,453) (1,524,837)

Other operating expenses (9,477,925) (6,131,217) (14,354,643)

Total expense (15,221,453) (10,011,250) (22,406,640)

Profit before income tax 3,251,857 2,349,537 6,253,177

Income tax expense (239,050) (160,413) 873,423

Profit for the period 3,012,807 2,189,125 7,126,600

OTHER COMPREHENSIVE INCOME NET

OF INCOME TAX

Foreign currency translation (7,084) - -

Fair value (losses)/gains on available-for-sale

investments 8,276 - 453,584

Other comprehensive income for the period 1,192 - 453,584

TOTAL COMPREHENSIVE INCOME FOR

THE PERIOD 3,013,998 2,189,125 7,580,185

Key Ratio

Earnings per share (kobo) 19k 17k 54k

BY ORDER OF THE BOARD

Justina Lewa

Company Secretary

STATEMENT OF COMPREHENSIVE INCOME

The Board of Directors is confident that barring unforeseen circumstances, this trend would be improved upon considerably in

the remaining period of the financial year.


6/6

6

About Sterling Bank

Sterling Bank PLC is the preeminent investment banking establishment in Nigeria. It

commenced operations as NAL Bank in 1960. Today, with over N500 billion in assets and

almost 200 branches nationwide, Sterling Bank has grown into a major financial institution.

The Bank prides itself as the One Customer Bank that celebrates each customer a

unique individual. For further information, please visit http://www.sterlingbankng.com

Forward-Looking Statements

This release may contain forward-looking statements which reflect Sterling Banks current

views with respect to, among other things, the Banks operations and financial

performance. These forward-looking statements may be identified by the use of wordssuch as outlook, believes, expects, potential, continues, may, will,

should, seeks, approximately, predicts, intends, plans, estimates,

anticipates or the negative version of these words or other comparable words. Such

forward-looking statements are subject to various risks and uncertainties. Accordingly,

there are or will be important factors that could cause actual outcomes or results to differ

materially from those indicated in these statements. Sterling Bank believes these factors

include but are not limited to those described in its audited Annual Report for the financial

year ended December 31, 2011. These factors should not be construed as exhaustive and

should be read in conjunction with the other cautionary statements that are included in

this release. Sterling Bank undertakes no obligation to publicly update or review anyforward-looking statement, whether as a result of new information, future developments or

otherwise.

Sterling Bank PLC

Sterling Towers

20, Marina

LagosT:+ 234 1 2600420-9, 2600850-9

W:http://www.sterlingbankng.com

sterling bank earnings release - h1 2012 unaudited ifrs results

Documents