2014 Q1 Results: Sterling Bank Post 17% Increase In Pre-Tax Profits

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Sterling Bank Plc released its 2014 Q1 results showing Net Interest Income of N10.2billion 58% higher than the N6.4billion posted a year earlier. Other highlights of the results are as follows;

• Loan losses increased more than twice to N1billion (2013 Q1: N334million)
• Operating income however increased 30% to N15billion as its high net interest margins helped push income.
• Operating expenses weighed in higher YoY to N11.6billion a 34%
• Pre-tax profits rose 17% t0 N3.5billion compared to N3billion posted a year earlier.
• Interest margin was 55% compared to 45% in 2013 Q1
• Loans as a percentage of deposits dropped 21% this quarter to 60.7% compared to 77% at the end of 2013
• Cost to income ratio for the quarter was a high 82% by our estimates and way above industry average.
• Return on Equity for the quarter was 4.8%  fairly lower than those of the tier 1 and 2 banks.