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Sterling Bank sees Q3 earnings rise
Sterling Bank’s third quarter earnings showed an 18.8 per cent increase in gross earnings to 94.6 billion naira from 79.7 billion naira recorded in the third quarter of 2016. Abubakar Suleiman, Chief Financial Officer of Sterling Bank joins CNBC Africa to unpack the bank’s Q3 earnings.
Mon, 30 Oct 2017 11:04:36 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Sterling Bank's 18.8% increase in gross earnings in the third quarter was attributed to the bank's efforts to control expenses and optimize operations.
- The bank saw a decline in income from loans but an increase in non-interest income from retail business and transaction processing.
- Sterling Bank's sustainable growth strategies include technology investments, support for agro-processing, and collaborations with international agencies and anchor borrowers in the agriculture sector.
Sterling Bank has reported a significant increase in its third-quarter earnings, with gross earnings rising by 18.8% to 94.6 billion naira from the 79.7 billion naira recorded in the same period last year. Abubakar Suleiman, the Chief Financial Officer of Sterling Bank, attributes this growth to the bank's focus on controlling expenses and optimizing its business operations. Suleiman highlighted that in an inflationary environment with high-interest rates, one would expect an increase in the top line. However, the key difference for Sterling Bank was the control of operating expenses, which only saw a moderate 3% increase. The bank also made sure to take loan losses as they occurred, positioning themselves well for any economic rebound. As the economy stabilizes and growth resumes, Sterling Bank aims to be well-prepared for the upcoming opportunities. The bank's net interest income saw a decline in income from loans by 11%, but there was a slight increase of 0.5% in income from investments. To achieve sustainable growth, Sterling Bank has been focusing on non-interest income from retail business and transaction processing. They have also made significant technology investments, enhancing customer experience through mobile banking and payment systems. Moreover, the bank has been investing in agriculture for the past four years, with a focus on commercial-funded agriculture and agro processing. They aim to bridge the gap between farm production and market availability by adding value to agricultural products. Working with SMEs and commercial businesses, Sterling Bank is looking to provide both debt and equity financing to support agro-processing initiatives. By collaborating with international agencies and utilizing anchor borrowers, the bank is ensuring that farmers have guaranteed offtake and are supported in expanding their farming operations. These sustainable growth strategies are positioning Sterling Bank for future success and increasing investments in the agriculture sector in the coming year.
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