Sterling Bank, one of the tier 2 banks in Nigeria said its net profit for the year 2016 fell by 49% on a year on year comparison.
Sterling Bank plc rounded off the year with interest income of NGN98.9 billion in contrast to NGN90.9 billion recorded in 2015. The bank’s interest expense was NGN42.8 billion against NGN41.3 billion recorded in the financial year 2015.
One of the major snag in its result was its impairment charges for the period. While it fell to NGN56.6 billion compared to NGN60.6 billion recorded in 2015, the figure is very high bearing in mind that the amount is slightly higher than its net interest income.
The bank must be trying hard to recoup all bad loans as its net interest income for the year rose NGN56.0 billion compared to NGN39.5 billion recorded same period 2015.
It’s operating income for the year was NGN68.3 billion compared to NGN68.8 billion recorded in 2015.
The company’s profit before taxation was NGN6.0 billion versus NGN11.0 billion recorded in the financial year 2015. After its deductions of tax for the year, sterling Bank profit for the year tumbled by 400% to NGN5.1 billion from NGN10.2 billion recorded in the fiscal year 2015.
The total assets acquired by the bank for the year in review was NGN830.8 billion against NGN799.4 billion recorded in 2015. It’s total liabilities was NGN745.1 billion against NGN703.8 billion posted in 2015.
Sterling Bank will have to try harder to get more funds back into its coffers. The bank was a target of acquisition by FirstRand of South Africa. Acquisition talks was said to have been cancelled due to over-pricing of the bank.