Sterling Bank Offers No Dividend, As Profit Dips 50%

The board of Sterling Bank Plc on Thursday presented its audited result for the year ended December 31, 2016, showing that gross earnings and profit before and after tax fell by 49.84%, with no news of dividend payment to shareholders from the Earnings Per Share of 18 kobo, as against the previous 36 kobo from which the board distributed nine kobo each.
Gross earnings crawled from N110.016bn to N111.439bn; profit before tax dropped from N11.016bn to N5.999bn.
Interest income of N99.103bn, up from N80.908bn and interest expenses of N43.114bn, as against the N41.367bn reported in 2015, following which net interest income stood at N55.989bn, up from N39.541bn.
Fees and commission income dropped to N10.788bn from N15.522bn; net trading income nose-dived to N234.938m from N10.649bn; other operating income stood at N1.313bn, down from N3.112bn.
Operating income dropped slightly from N68.826bn to N68.325bn; impairment charges also grew from N8.151bn to N11.713bn, following which net operating income after impairment charge dropped to N56.611bn from N60.675bn.
Total expenses rose slightly to N50.611bn from N49.659bn, the lion’s share of which was the N16.996bn general administrative expenses, from N16.427bn; followed by other operating expenses of N12.701bn from N11.675bn; and N11.521bn of personnel expenses, from N12.101bn.
Profit before tax dropped to N5.999bn from N11.016bn; just as net profit stood at N5.162bn from N10.292bn in the corresponding period of 2015, representing a N5.13bn decline within the period, out of which N4.388bn was transferred to retained earnings, down from N7.2bn; while the remaining N774.355m was transferred to statutory reserve..
On the balance sheet, total assets rose to N834.189bn from N799.451bn; comprising N107.859bn cash and balances with Central Bank of Nigeria (CBN) from N115.924bn; customer loans and advances climbed to N468.249bn from N338.726bn; resulting in total non-performing loans to gross loans at 9.9%, almost doubt regulatory 5% threshold and up from 4.8% in 2015.
With total liabilities of N748.529bn, from N703.885bn in 2015; customer deposits dropped slightly from N590.889bn from N584.733bn

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