Babajide Komolafe
22 August 2007
Lagos — Few weeks after the submission by the board and management of Sterling Bank Plc, of its un-audited result for the 2007 third quarter ended June 30, more information emerged at the weekend.
Asset base within the period at N137.34 billion, improved by about N24.04 billion or 21.22 per cent from full year's N113.29 billion. Of this figure, the bank's loans and advances portfolio worth N50.13 billion was the most significant contributor to this pool, representing 36.50 per cent of the bank's total assets, better also than full year's N38.94 billion.
Cash and short-term funds followed at N32.83 billion, just as dealing securities was worth N16.86 billion, followed by sundry investments worth N10.79 billion. According to the third quarter result, the bank's total liabilities rose to N108.30 billion from full year's level of N87.11 billion.
The bank's deposits liabilities accounted for N65.77 billion, followed by N24.23 billion worth of "other liabilities" and N16.81 billion "takings." Shareholders funds (net assets) within the period rose by N2.98 billion or 11.39 per cent, just as total assets and contingent liabilities stood at N184.20 billion within the first nine months of the current financial year.
The profit and loss account for the period shows that apart from stronger confidence in the bank by depositors, the directors seem poised to reward investor loyalty at the end of the full year in September 30, 2007. The result however points to the need for the Babatunde Dabiri-led management of the bank to keep a tab on cost, if the harvest season being eagerly awaited by investors is to be bumper after all.
This is visible from the fact that earnings income growth margin outstrips that of profit before and after tax for the period. The bank's earnings income soared by N7.4 billion or 86.04 per cent from the previous third quarter's N8.60 billion to N16.04 billion this year. Of this amount, profit before tax rose by a more robust N2.73 billion or 1,015.24 per cent to N3.0 billion, as against the previous N269.0 million. Profit attributable to shareholders appreciated by N1.04 billion or 73.23 per cent within the period, from N1.42 billion in the first nine months of 2006 to N2.46 billion in the 2007 third quarter.
A breakdown of the figure indicates that interest income and expenses stood at N8.17 billion and N4.93 billion respectively, leaving a net interest income of about N3.23 billion. The bank, within the period earned N4.12 billion as commissions and fees, just as other incomes stood at N2.67 billion even as the bank recorded N7.16 billion as "total other operating income."
Within the period, loans recoveries stood at N362.18 million, leaving an operating income of N10.40 billion and total operating expenses of N7.37 billion. The recent result, market watchers believe is a continuation of previous outings within the financial year, beginning from the first quarter.
Gross earnings rose by N3.1 billion or 221.42 per cent from N1.4 billion in the corresponding first quarter of last financial year, to N4.5 billion. The result also indicated the bank's return from the woods, with a profit before tax of N715.5 million, an improvement over the pre-tax loss of N449.5 million in within the first three months of last year.
Be the first to Write a Comment!
Copyright © 2007 Vanguard. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
