NOT SO STERLING FOR STERLING BANK BUT.....

The financial year 2015 was not so sterling for Sterling Bank PLC but it was one in which a fair fight to stay in control paid some dividends.
According to the year's audited figures released recently, what Sterling bank lost in higher interest expense, higher impairment charges and also higher other operating costs it gained in solid increase in net trading income, and overall decrease in total expenses driven by decrease in general administration expenses.
Interest income had risen by only 3.82% to N80908.7m from N77932.1m outshined by 18.5% jump in interest expense to N41367m from N34915.4m.
Then fee and commission income dropped by 3.78% to N15522.3m from N16132.9m leaving net trading income 57.4% rise to N10650m from N6765.2m to single handedly grow net operating income with some help from 9.33% increase in other operating income to N3112.9m.
With impairment charges growing by 10.3% to N8151.3m from N7289.2m, it was now the business of marginal 1.92% decrease in total expenses to N49659.2m from N50630m to ensure the 2.50% increase in profit before tax to N11016.3m from N10748m with which Sterling Bank ended the year.
In the total expenses basket, personnel cost had been well caged leading to only 0.58% growth to N12101.3m and more importantly, general administration costs had dropped by 17.8% to N16427.3m from N19992.1m to counter the pressure exerted on the basket by 17.8% increase in other operating costs to N11675.4m from N9911.3m.
Hence all said and done, with little chip ins from profits from sale of investment property and securities available for sale, gross earnings growth came to 8.17% to N112469.2m from 2014's N103973.3m and gain on N100 income almost stable at N9.79 compared to N10.3 in 2014.
SO:
* For Sterling Bank 2016 goals seem clear: How to grow income further while having increasingly firmer control over all costs particularly of the other operating expenses kind.
* It looks like Sterling Bank was hit too by the single treasury account policy thus recording a drop in customers deposits to N590889.2m from N655944.1m.

Comments

  1. Unknown28 March 2016 at 19:47

    Sterling bank need to re strategies and do more serious planning so as to achieve their desired goal not only in the months ahead but also in the years to come. I salute the MD of Henates Financial Analysis for his thorough analysis of Sterling bank end of year financial position.

    ReplyDelete

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