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31, 2010
Reports Earnings of N34.3 Billion, Declares Profit after Tax of N5 Billion

Lagos, April 11, 2011 – Sterling Bank Plc (NSE: STERLNBANK/ Reuters: STBP.LG) – the ‘B
ank’ – today released its full year audited results for the 12-month period ended De
cember 31, 2010.
The Bank sustained its profitability achieved in the third quarter driven by imp
roved margins and control in operating costs. At 21%, the Bank’s Return on Average
Equity is in the first rank percentile among all banks.
Speaking on the Bank’s results, Yemi Adeola, Group Managing Director said:
I am glad to report our full year performance, which was in line with our expect
ations and consistent with broad sector performance and wider economic trends. A
stronger balance sheet position arising from the clean up in 2009, reduced fund
ing costs, and supportive government policies, in particular, the takeoff of the
Asset Management Company of Nigeria (AMCON) served to re-ignite confidence in t
he banking sector. We were able to grow our loans by 25% and reduce non-performi
ng loans by 44% through a combination of loan recovery and sale of impaired asse
ts to AMCON.
Sterling Bank’s business fundamentals provide reassurance on the validity of our b
usiness model and execution capabilities on the strategy, albeit tempered by exo
genous factors including low interest rates and lower asset yields. Refining our
strategy and strengthening our capital position through the infusion of long-te
rm debt were also major items on our management agenda in 2010. Leveraging that
improved capital position as a basis for supporting institutional profitability
is a key priority for our management team in the coming months and we expect to
see the payoff in 2011.

Financial Highlights for 12-Month Period ended December 31, 2010

Income Statement
* Gross earnings declined 8% to N34.3 billion from N37.4 billion in 2009 (annual
ized) as a result of the low interest rate regime that obtained for the greater
part of the year
* Funding costs declined 33% to N11.1 billion from N16.5 billion in 2009 (annual
ized) feeding through a 32% improvement in Net Interest Margins
* Operating expenses reduced by 11% to N15.8 billion from N17.7 billion in 2009
(annualized) reflecting progress in the Bank’s cost discipline and efficiency prog
rams introduced in 2009
* Profit after Tax rose to N5.0 billion from the previous year net loss of N(7.2
) billion (annualized)
Balance Sheet
* Total Assets grew 25% to N277.1 billion from N221.3 billion, spurred by slight
ly improved economic conditions
* Deposits grew 26% to N203.1 billion from N161.3 billion in 2009 reflecting sli
ght market share gains
* Net Loans & Advances (including Advances under Finance Lease) grew 25% to N103
.8 billion from N82.9 billion in 2009
* Non-performing loans reduced by 44% from N22.8 billion in 2009 to N12.9 billio
n resulting from progress in loan recovery and the transfer of delinquent assets
Financial Ratios
* Cost-to-Income ratio (including allowances for risk assets) of 76% (211% in 20
* Earnings per share rose to 40k from a loss per share of 72k in 2009
* Net interest margin rose to 56% (39% in 2009)
* Return on Average Equity of 21%, (-ve 27% in 2009)
* Liquidity Ratio stood at 47% (50% in 2009)
* Capital Adequacy Ratio stood at 13% (12% in 2009)
Investor Contacts
Yemi Odubiyi
M: +234 803 535 0991

Abubakar Suleiman
M: +234 803 535 1172

Media Contact
Abimbola Sowemimo
Head, Brand Management & Communications
M: +234 803 306 9033

About Sterling Bank

Sterling Bank PLC is the preeminent investment banking establishment in Nigeria.
commenced operations as NAL Bank in 1960. Today, with over N277 billion in asset
s and
95 branches nationwide, Sterling Bank has grown into a major financial supermar
offering investment banking, commercial banking, asset management, stock broking
insurance and registrar services. The Bank prides itself as the „One Customer Bank
? that
celebrates each customer a unique individual. For further information, please
visit .
Forward-Looking Statements
This release may contain forward-looking statements which reflect Sterling Bank
s current
views with respect to, among other things, the Bank s operations and financial
performance. These forward-looking statements may be identified by the use of wo
such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,”
“should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,”
“anticipates” or the negative version of these words or other comparable words. Such
forward-looking statements are subject to various risks and uncertainties. Accor
there are or will be important factors that could cause actual outcomes or resul
ts to
differ materially from those indicated in these statements. Sterling Bank believ
es these
factors include but are not limited to those described in its Annual Report for
financial year ended December 31, 2009. These factors should not be construed as
exhaustive and should be read in conjunction with the other cautionary statement
s that
are included in this release. Sterling Bank undertakes no obligation to publicly
update or
review any forward-looking statement, whether as a result of new information, fu
developments or otherwise.