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Sterling Bank Records 28.5% Rise in Profit, Posts N19.3 Billion in 2022

Sterling Bank Records 28.5% Rise in Profit, Posts N19.3 Billion in 2022

Nigeria’s tier-2 lender, Sterling Bank Plc, posted N19.298 billion annual profit for the financial year 2022, representing a 28.5% increase above N15.022 billion recorded in 2021; its audited financial statement show.

In the report, the bank’s board of directors propose 15k as a final dividend for its shareholders subject to approval at the annual general meeting amidst over-inflated earnings performance for 2021. In 2021, the bank paid 10k as a final dividend to the owners of the business.

Shareholders’ structure shows that Silverlake Investment Limited with 25% interest in the group remains the largest single shareholder after 2015 private placement. On the rank, state bank of India owns 8.86% followed by Mike Adenuga owning 5.63% and then Es-say investment ltd 5.08% as of December 2022.

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Its financial scorecard show that Sterling Bank restated its audited report for 2021 due to bad receivables book. This reduce the amount the group posted as annual profit in the period.

The bank saw gross earnings growing to N174.140 billion in 2022 as it deepened its footprint in the market, up 16.6% year on year from N150.153 billion in 2021.

Read Also: UBA Records 43.5% Rise in Profit, Loan Portfolio Spur to N605 Billion

The growth in topline was supported by an increase in net interest income, net fees and commission fees as well as trading gains recorded in the period. The audited statement showed that net interest income printed at N76.392 billion in 2022 from the restated amount of N67.809 billion in 2021.

Also Read: Massive Opportunities Remain in Agriculture – Sterling Bank

The growth in topline ahead of its restated 2021 earnings pushed operating profit performance. However, the bank’s operating expenses spiked while its asset quality deteriorated with non-performing loan printing at 4%. – Still behind the regulatory benchmark. T

he group’s net fees and commission income grew moderately, rising from N19.359 billion to N22.375 billion in the comparable period in 2021. Sterling Bank reported that its pre-tax profit surged to N20.757 billion from N16.062 billion in 2021.

Due to an increase in tax obligation, Sterling Bank reported that its post-tax profit settled at N 19.298 billion in 2022 from N15.022 billion restated profit in 2021

About Bukola Olanrewaju

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