Sterling Bank Plc has concluded plans to raise additional N35 billion tier 11 capital the second half of the year, even as the bank has recorded a reduction in non-performing loans from 4.8 per cent recorded in 2015 to 2.8 per cent by June 2016.
According to the bank’s unaudited result for the period ended June 30, 2016, its cost of funds also declined to 4.7 per cent as against 5.9 per cent recorded in the corresponding period in 2015.
Net interest income increased by 31.9 per cent to N25.6 billion in first half 2016 as against N19.4 billion in corresponding period of 2015. This, according to the bank was driven by a 22 per cent decrease in interest expense resulting in a 1240 basis point improvement in net interest margin to 61.7 per cent.
Non-interest income however reduced from N15.2 billion in first half 2015 to N8.5 billion in first half 2016. Altogether, net operating income increased marginally from N30.2 billion to N30.5 billion.
Profits before tax stood at N4.4 billion against N6 billion recorded in 2015 while profit after tax declined from N5 billion to N4 billion achieved in the corresponding period in 2015.
Net loans and advances increased by 36.5 per cent to N462.3 billion largely driven by foreign exchange revaluation. Also, customer deposits increased to N627.9 billion from N590.9 billion. Total assets excluding contingent liabilities increased by 20 per cent N959.2 billion by June 2016 as against N799.5 billion recorded by December 2015.
The Managing Director of the bank, Yemi Adeola noted that the bank has remained strong as demonstrated by the strength of its core business.