Babajide Komolafe
7 August 2007
Sterling Bank PLC has announced a profit after tax of N2.47 billion for the nine months ending June 30th 2007. This represents an increase of 135 per cent when compared with the previous period.
It would be recalled that Sterling Bank was formed from the merger of Indo-Nigeria Bank Limited, Magnum Trust Bank Plc, NBM Bank Limited, NAL Bank Plc and Trust Bank of Africa Limited.
In its first operating year which ended September 30th 2006 the bank posted a gross earnings of N12.86 billion while profit after tax (PAT) stood at N1.05 billion. Balance sheet size also increased significantly to N146 billion.
Addressing financial journalists in Lagos last week Executive director, Corporate and Commercial Banking, Sterling Bank, Mr. Yemi Adeola, disclosed that, "the nine months (unaudited) results for the period that ended June 30 2007 showed that the bank has indeed overcome major integration challenges and is catching up on lost ground. While the nine months results for the period ended 30 September 2006 showed a Profit Before Tax of N728million, the first nine months that ended 30th June 2007 indicated an increase of 313% to N3.01billion, while the Profit After Tax increased by 135% from N1.05billion in 2006 to N2.47billion in 2007. The Directors are of the view that barring any unforeseen circumstance the growth in the last quarter will follow the same trend."
Speaking further, he explained that, "Following the conclusion of the Banking Industry consolidation, Sterling Bank Plc commenced operations in January 2006 with the strategic vision of becoming Nigeria's leading diversified financial institution with dominance in chosen markets. Since that time, the bank has implemented a change programme geared towards refocusing the institution to meet the unfolding challenges in the banking industry and to unleash the synergies arising from the business combination of the five legacy banks.
Today, Sterling Bank prides itself as a full service institution, offering various types of financial services, which include retail /consumer banking, corporate banking, trade finance, capital markets, investment management and insurance brokerage. Its network of 97 branches, from 84 in 2006, ranks it among the top ten banks in terms of spread. It has also deployed ATMs in over 21 locations throughout the country to further increase market penetration."
"Over the 18 months of its operations, Sterling Bank has proved itself as a leading provider of consumer products, helping the middle class to grow by providing various types of asset acquisition loans. Sterling Bank is also a prominent player in public sector collection businesses and an active participant in the newly introduced e-payment systems particularly e-Immigration payments and Authoreg. In project finance, Sterling Bank is perhaps one of the few Nigerian Banks that have made their mark in this area. It recently secured a $150million facility from the African Export Import Bank to assist indigenous investors to benefit from the Cabotage Act of 2003, in addition to dedicating one of its Apapa Branches as a full Maritime centre in furtherance of this objective."
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