Sterling Bank grows net profit by 20% in 2021

Shareholders approve Sterling Bank dividend payment

Sterling Bank Plc has reported a profit after tax (PAT) of N13.515 billion for the year ended December 31, 2021, representing, a growth by 20.2 per cent over N11.242 billion in the corresponding period of 2020.

On the heels of growth in profit, the management declared a dividend of 10 kobo per share as against five kobo declared in December 31, 2020, translating to a pay-out ratio of 22 per cent.

According to the results released on the Nigerian Exchange Limited (NGX), the lender grew its gross earnings by 4.8 per cent to N142.3 billion from N135.8 billion in 2020, driven by 28.5 per cent growth in non-interest income. Interest expense declined by 8 3 per cent resulting in a 21 3 per cent drop in the cost of funds.

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The bank customer deposits increased to N1.209 trillion from N950.835 billion in 2020, while loans and advances to customers also rose to N711.900 billion as against N596.827 billion achieved in 2020.

Cost to income ratio declined to 75 per cent despite a 9.9 per cent increase in operating expenses arising from inflationary pressures and FX risks.

The bank’s NIP (NIBSS Instant Payments) transaction volume significantly grew by 51 4 per cent compared to the previous year on the back of investments made in its digital platforms.

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Overall, the bank achieved a 20.2 per cent growth in profit after taxes to reach N13.5 billion this underpins the 4.2 per cent growth in shareholders’ funds recorded as at year end.

The chief executive officer, Sterling Bank, Abubakar Suleiman said: “2021 was a year of recovery from the adverse effects of COVID-19 The campaign to vaccinate the global population against the virus gained ground, and bolstered consumer and investor confidence. The pace of economic recovery exceeded expectations despite threats of a third wave and the emergence of variants of the virus.”

He added that, “during the period, we were consistent with our strategy to drive financial intermediation in high impact sectors and deliver innovative solutions that enabled our customers thrive in a dynamic environment. We are unwavering in our commitment to build a forward-thinking organisation focused on delivering the best value to our stakeholders.”

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According to him, overall, the bank delivered a 20 2 growth in profit after tax to N13.5 billion as at December 2021.


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