Sterling Bank Nigeria grosses N33b in three months

Sterling Bank Plc recorded gross earnings of N32.9 billion in the first quarter as net profit closed the three-month period at N2.07 billion. Profit before tax stood at N2.22 billion in first quarter 2020.

Key extracts of the three-month period ended March 31, 2020 showed that net operating income rose marginally to N18.779 billion in first quarter 2020 as against N18.565 billion recorded during the corresponding period of 2019.

Managing Director, Sterling Bank Plc, Mr. Abubakar Suleiman, noted that despite a very challenging macro-economic environment, the bank’s net trading income grew remarkably to N984 million as against N435 million during the corresponding period, representing an increase of 126.2 per cent.

The bank’s marginal drop in net profit was attributed to a combination of a decline in fees and commission income following the downward review of transactional charges and a slight increase in total expenses which rose from N15.3 billion in 2019 to N16.6 billion in 2020.

The increase was driven mainly by other operating expenses and depreciation and amortization costs. Income tax expense also went up from N33 million in 2019 to N154 million in 2020.

However, the bank was able to reduce its non-performing loans from 2.2 per cent to 2.0 per cent during the review period.

Suleiman pointed out that the bank’s deposit base rose to N898.576 billion in first quarter 2020 from N892.660 billion in the corresponding period of 2019 while loans and advances increased to N627.122 billion from N618.732 billion. Total assets rose to N1.231 trillion from N1.182 trillion, representing an increase of 4.1 percent.

He added that the bank managed to reduce cost of funds further by 18.4 per cent on the back of growth in low cost deposits, resulting in a growth in net interest income to N15.449 billion.

The bank had recorded gross earnings of N35.27 billion in first quarter 2019 while pre and post tax profits stood at N3.27 billion and N3.24 billion respectively.

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