EARNINGS PRESS RELEASE APRIL 28, 2017 STERLING BANK PLC RELEASES UNAUDITED RESULTS FOR THE QUARTER ENDED MARCH 31, 2017 Gross Earnings rises by 12.0% to N28.6 Billion Lagos, April 28, 2017 – Sterling Bank Plc (NSE: STERLNBANK / Reuters: STERLNB.LG / Bloomberg: STERLNBA:NL) – the ‘Bank’ – a full service national commercial bank releases its unaudited results for the quarter ended March 31, 2017.

In his remarks, Yemi Adeola, the Managing Director/ Chief Executive, stated:

Our first quarter performance was in line with expectations, as earnings remained resilient with a double-digit growth despite the macroeconomic headwinds that persisted during the period.

We made significant progress in our efficiency drive through the adoption of strategic cost management initiatives. As a result, we recorded a 3.3% reduction in Operating Expenses and a 190 basis point improvement in Cost-to-Income Ratio. Also, Net Interest Margin improved marginally to 8.2% despite the crowding out effect of sovereign borrowing which kept interest rates high. We retained our cautious stance on lending and continued to strengthen our risk management framework across people, processes and IT systems.

Going into the year, we will continue to explore innovative ways to improve revenue, while simultaneously enhancing the overall efficiency of our business operations.

Financial Highlights Income Statement • Net Interest Income increased by 18.3% to N13.5 billion (Q1 2016: N11.4 billion) on account of a 26.3% increase in Interest Income; • Net Operating Income of N14.2 billion (Q1 2016: N15.4 billion) impacted by impairment charges; • Operating Expenses of N12.2 billion (Q1 2016: N12.6 billion) driven by our strategic cost control measures in response to inflationary pressures; • Profit before Tax stood at N2.0 billion, while Profit after Tax was N1.9 billion.

Financial Position • Net Loans & Advances was relatively flat at N467.4 billion (Dec. 2016: N468.3 billion); • Customer Deposits decreased marginally by 2.5% to N570.2 billion (Dec. 2016: N584.7 billion); • Total Assets (excluding contingent liabilities) increased by 6.8% to N891.3 billion (Dec. 2016: N834.2 billion); • Overall, Shareholders’ Funds closed at N87.5 billion arising from organic accretion of profit.

Key Financial Ratios Indicator Q1 2017 Q1 2016 Pre Tax Return on Average Equity 9.4% 11.9% Post Tax Return on Average Equity 8.7% 10.8% Return on Average Assets 0.9% 1.4% Earnings per Share 7k 9k Yield on Earning Assets 14.7% 13.4% Cost of Funds 6.5% 5.3% Net Interest Margin 8.2% 8.1% Cost-to-Income Ratio 72.9% 74.8%

Indicator Mar. 2017 Dec. 2016 Non-Performing Loan Ratio 12.0% 9.9% Cost of Risk 2.1% 2.5% Capital Adequacy Ratio (Basel 2) 10.8% 11.2% Loan to Deposit Ratio (Net) 82.0% 80.1%

CONTACTS Primary Contacts: Chimaobi Nwaokoma M: +234 803 406 6104 E:

Shina Atilola M: +234 802 342 3011 E: Secondary Contacts: Abubakar Suleiman E:

Yemi Odubiyi E: Media Contact: Henry Bassey M: +234 802 301 4282 E:

Investor Relations Team E: W: Forward-Looking Statements This release may contain forward-looking statements, which reflect Sterling Bank’s current views with respect to, amongst other things, the Bank’s operations and financial performance. These forward-looking statements may be identified by the use of words 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.

Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Sterling Bank believes these factors include but are not limited to those described in its audited Annual Report for the financial year ended December 31, 2016. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements 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, future developments or otherwise.

Sterling Bank PLC Sterling Towers 20 Marina Lagos T: + 234 1 2600420-9, 2600850-9 W:
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