Sterling Bank Plc has concluded strategies aimed at reducing its non-performing loan (NPL) below five per cent in 2018 financial year.
Mr Abubakar Suleiman, the bank’s Managing Director, made this known at the company’s facts behind the figures at the Nigerian Stock Exchange (NSE) in Lagos on Tuesday.
Suleiman said that the bank was targeting NPL of less than five per cent in the current financial year against 6.2 per cent posted in 2017.
He said that the bank in order to achieve the target had reviewed its loan book.
Suleiman said that 10 per cent of the bank’s loan book in 2018 would be for agricultural sector.
According to him, the bank’s customers deposits will be in excess of 15 per cent in the current financial year, as it posted N684.8 billion customers deposits in 2017.
Suleiman said that would continue to mobilise private sector capital to solve some of the most pressing social and economic needs of Nigerians.
He said that the bank had aligned its business model to offer financial and non-financial solutions to five key sectors of the economy.
According to him, the five key sectors are health, education, agriculture, renewable energy and transportation.
The managing director said that the bank’s choice of market segments was based on the understanding of emerging trends in the macroeconomic environment and opportunities in the sectors of interest.
Suleiman said that the bank’s intervention in these sectors would boost its performance as well as enhance the growth and development of the sectors.
He said that the bank successfully launched Fare pay, a contact-less payment system as part of its transport sector intervention in Lagos State.
Suleiman said that the bank presently was in talks with six states that had indicated interest to operate mass transit business to increase revenue growth.
He said that the bank would diversify funding base to deliver stronger numbers in 2018 financial year.
The bank posted gross earnings of N113.5 billion for the financial year ended Dec. 31, 2017 in contrast with N111. 4 billion achieved in the comparative period of 2016, indicating an increase of 9.8 per cent
The bank said that the performance was driven by growth in both interest and non-interest income by 11.3 per cent and 87.8 per cent respectively.
Its net operating income rose by 7.9 per cent, while cost-to-income ratio improved by 260 basis points to 71.5 per cent. (NAN)
