Finance

Sterling Bank Posts 41% Increase In PAT In H1

Shareholders approve Sterling Bank dividend payment

Sterling bank Plc has announced 40.8 per cent increase in profit after tax in its half year (H1) unaudited financial statement for period ended June 30, 2022.

The bank in its results on the Nigerian Exchange Limited revealed that profit after tax grew by 40.8 per cent to N8.013 billion from N5.691 billion reported in corresponding half year results.

The lender’s gross earnings rose by 15.9 per cent to N81.146 billion in H1, 2022 as against the N70.033 billion reported in H1, 2021, was a combination of a 48.2 per cent increase in non-interest income and an 8.8 per cent growth in net interest income.

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In the period under review, Sterling Bank grew operating expenses by 18 per cent to N40.3 billion in H1 2022 from N34.2 billion in H1 2021, driven by an increase in other operating expenses and other property, plant, and equipment costs such as the repairs and maintenance of PPE.

From balance sheet position, Sterling Bank grew its balance sheet by 11.4 per cent to N1.8 trillion as of June 30, 2022 from N1.63 trillion reported in 2021 full financial year.

The chief executive officer, Sterling Bank, Abubakar Suleiman said: “the macro-economic environment continues to be pressured by global supply chain disruptions which had resulted in rising inflation.

“At Sterling Bank, we continue to look for ways to alleviate the challenges experienced by our stakeholders through our sustainable banking practices and innovative products. We launched the first Africa Social Impact Summit and unveiled the LAGID partnership, the first state smart ID card product in West Africa.”

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He stated that “our half-year results reaffirm our growth strategy and diversified business model. We continue to enrich the lives of our stakeholders and have created investment platforms that enable customers create wealth by accessing high-quality assets like luxury real estate, infrastructure bonds and precious metals.

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“In the second half of the year, we will continue to enhance our execution capabilities to deliver solutions that will enable our stakeholders thrive in a dynamic environment.”

In terms of asset quality, Sterling Bank’s Non-Performing Loans (NPL) increased to 1.1per cent as of June 30, 2022 from 0.7 per cent reported in 2021, while the cost of risk ratio remained flat at 0.9 per cent.

The Tier-two bank maintained a strong capital and liquidity position recording 14.4 per cent and 31.3 per cent, respectively above Central Bank of Nigeria (CBN) benchmark.

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