Modupe Gbadeyanka
By Dipo Olowookere
One of the financial institutions in Nigeria, Sterling Bank Plc, recorded a drop in its profit for the year ended December 31, 2016.
According to the audited results of the firm released to the Nigerian Stock Exchange (NSE), Sterling bank posted a profit after tax of N5.2 billion, compared with N10.3 billion it achieved a year earlier, representing a decline by about 50 percent.
During the year, the bank operated in a business environment marred by economic recession, which affected many companies in the country.
But despite this and other factors it struggled with, Sterling Bank recorded a rise in its gross earnings. It declared a total of N111.2 billion in revenue compared with N110.2 billion it achieved at the end of December 31, 2015.
However, the lender posted a profit before tax of N6.2 billion in the period under review in contrast to N11.02 it declared 12 months earlier.
Sterling Bank, in its 2016 full year financial results, revealed that its total non-performing loans for the year stood at 9.9 percent compared with 4.8 percent it was in 2015.
It noted further that its impairment charges on financial assets stood at N11.7 billion in 2016 in contrast to N8.15 billion a year earlier.
Furthermore, the cash generated from operations in 2016 stood at N124.3 billion versus N56.33 it recorded in 2015, while the purchase of property, plant and equipment cost N3.2 billion in the year under review against N5.04 billion 12 months earlier.
