The earnings of Sterling Financial Holdings Company Limited, a financial institution in Nigeria, rose by 52.8 percent in the first six months of 2024, according to its latest unaudited financial statement.
The group reported an after-tax profit of N16.2 billion in H1 2024 from N10.6 billion in the first half of 2023.
Interest income calculated using the effective interest rate rose to N120.8 billion from N76.3 billion while the bank’s interest expense surged 100 percent to N63.2 billion from N31.6 billion driven by the high-interest rate environment.
Further breakdown of the financial statement disclosed that Sterling’s interest income grew by 57.5 percent in H1, as all major contributory lines recorded an increase in loans and advances to customers (45.9 percent), debt instruments at fair value (23.4 percent), and cash and cash equivalent (509 percent).
The bank recorded a 33.4 percent growth in net interest income to N57.5 billion in the first half of 2024 from N45.1 billion in the same period of 2023.
Net fee and commission income increased to N15.2 billion from N11.6 billion during the period.
Items in fees and commission income include; facility management fees (N2.4 billion), account maintenance fees (N2.8 billion), commission and similar income (N1.4 billion), e-business commission (N4.6 billion), commission on the letter of credit and off-balance sheet transactions (N6.3 billion) and other fees and commission (N2.5 billion) as of June 2024.
Read also: Sterling Holdings’ three-month profit rises to N7.5bn
The holding company during the period reported that other operating expenses increased to N19.2 billion from N14.9 billion, on the back of an increase in Asset Management Corporation of Nigeria surcharge amounting to N7 billion.
Total expenses in the first half of the year increased by 29.3 percent to N67 billion from N51 billion. Earnings per share increased to N0.56 kobo from N0.37 kobo in the first six months of last year.
Total assets grew to N3 trillion from N2.29 trillion on the back of loans and advances to customers amounting to N1.09 trillion.
Deposits from customers totalled N2.16 trillion while deposits from Banks increased to N56 million. The holding company’s total liabilities also rose to N2.8 trillion leaving its shareholders fund at N190.3 billion.
Net cash flows from operating activities saw a negative flow to N6.1 billion from a negative N3 million.
Net cash flows from/(used in) investing activities recorded a negative of N178 billion from a negative of N106 billion. Net cash flows from/(used in) financing activities recorded a negative of N34 billion from N54 billion.
Cash and cash equivalents at the end of the period totalled N262 billion from N265 billion.
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