BusinessDay

Sterling Bank records highest Q1 profit in 6 years

Sterling Bank Plc has reported a 20.2 percent growth in its profits for the fiscal year ending December 31, 2021.

The financial institution saw its profit at N3.54 billion, a 48 percent increase from N2.39 billion in March 2021.

Gross earnings jumped 23 percent to N38.05 billion in March 2022 from N30.88 billion in the prior year.

The bank saw its operating income jump to N24.8 billion, a 24 percent increase from N20 billion in March 2021.

Interest income grew 18 percent to N30 billion from N25.27 billion in the period under review.

Interest expense jumped 20 percent to N13.2 billion in March 2022 as against N11 billion in the prior year.

Sterling bank incurred N19.03 billion in total expenses, a 21 percent increase from N15.68 billion in March 2021.

Other operating income rose to N1.58 billion in March 2022, a 43 percent increase from N1.1 billion.

The bank saw a 50 percent rise in its net trading income to N1.28 billion from N853 million in the period under review.

Total assets grew by just 2 percent to N1.66 trillion in March 2022 from N1.63 trillion.

Read also: Sterling Bank maintains growth trajectory as full year profit increases by 20%

“To preserve the bank’s asset quality, the Bank maintains optimal risk management measures and operational process improvements, including frequent stress testing and contingency planning to assess the impact of the COVID-19 pandemic on its capital Adequacy, Asset Quality and Liquidity indicators,” the bank said in a statement.

Total equity rose to N151.7 billion, 7 percent from N141.5 billion in the prior year.

Sterling bank’s e-business expenses dropped 2 percent to N1.37 billion in March 2022 from N1.4 billion in the prior year.

Sterling bank spent N3.6 billion on personnel expenses, 3 percent from N3.5 billion in March 2021.

Similarly, other expenses grew 29 percent to N6.2 billion from N4.8 billion in the prior year.

General and administrative expenses increased by 44 percent to N6 billion in March 2022 from N4.16 billion.

Net cash flows from operating activities recorded a N15.5 billion loss in March 2022 from N5.6 billion gain in March 2021.

Net cash flows from investing activities recorded N47.22 billion from N13.22 billion year-on-year loss.

Net cash flows from financing activities recorded a N10 billion loss from N13.7 billion gain in March 2021.

Between December 2021 to March 22, deposit from banks grew 11 percent to N17.2 billion from N15.5 billion.

Sterling bank is engaged in commercial banking services with emphasis on retail, commercial and corporate banking, trade services, investment banking activities and non-interest banking. It also provides wholesale banking services, including granting of loans and advances; letter of credit transactions, money market operations, electronic banking products and other banking activity.

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