The after-tax profit of Sterling Financial Holdings Company Limited, a financial institution in Nigeria, rose by 82.9 per cent in the first three months of 2024, according to its latest financial statement.
The group reported an after-tax profit of N7.5 billion in Q1’2024 from N4.1 billion in the first quarter of 2023.
Interest income calculated using the effective interest rate rose to N55.3 billion from N37.8 billion while the bank’s interest expense surged 80.1 per cent to N28.1 billion from N15.6 billion driven by the high-interest rate environment.
Further breakdown of the financial statement disclosed that Sterling’s interest income grew by 46.2 per cent in Q1, as all major contributory lines recorded an increase in loans and advances to customers (34.7 per cent), debt instruments at fair value (113.7 per cent), and cash and cash equivalent (401 per cent).
The bank recorded a 23.7 per cent growth in net interest income to N27.2 billion in the first quarter of 2024 from N22.1 billion in the same period of 2023.
Net fee and commission income increased to N7.1 billion from N5.4 billion during the period.
Items in fees and commission income include; facility management fees (N1.1 billion), account maintenance fees (N1 billion), commission and similar income (N587 million), e-business commission (N2.2 billion), commission on the letter of credit and off-balance sheet transactions (N2.9 billion) and other fees and commission (N1.3 billion).
The holding company during the period reported that other operating expenses increased to N9.4 billion from N7.5 billion, on the back of an increase in Asset Management Corporation of Nigeria surcharge amounting to N3.5 billion. Total assets grew to N3 trillion.
Total expenses in the first quarter of the year increased by 36.3 per cent to N33 billion from N24.2 billion. Earnings per share increased to N0.26 kobo from N0.14 kobo. Loans and advances to customers rose to N1.06 billion.
Deposits from customers totalled N2.1 trillion while deposits from Banks increased to N125 million. Net cash flows from operating activities increased to N126 billion from a negative N34.5 billion.
Net cash flows from/(used in) investing activities recorded a negative of N125 billion from a negative of N14 billion. Net cash flows from/(used in) financing activities recorded a negative of N40.1 billion from N21 billion.
Cash and cash equivalents at the end of the period totalled N357.2 billion from N195.6 billion.
“In the second quarter of 2024, Sterling Holdco has projected its after-tax profit to rise to N10 billion, interest income to N60.6 billion, and its gross earnings to N79.3 billion,” according to its Q2 Earnings report.
