Sterling bank grows profit to N10.6 bn, declares dividend

Sterling Bank Plc, a full-service national bank, has reported an audited profit after tax (PAT) of N10. 6 billion for the year ended December 31, 2019, an increase of 15 per cent when compared to a profit of N9.2 billion reported in the corresponding period of 2018.

For the period under review, Sterling bank reported N10.67billion profit before tax as against N9.49billion reported in 2018 while gross earnings moved from N148.71billion in 2018 to N150.2billion reported in 2019.

The lender also announced N0.03 dividend payout to shareholders in its 2019 result and accounts that was submitted to The Nigerian Stock Exchange (NSE) during the weekend.

Commenting on the financial performance, Chief Executive Officer (CEO) of Sterling Bank, Abubakar Suleiman said, “In the final quarter of 2019, our relentless commitment to improving education through micro banking was rewarded with ‘The Banker’s Award for Banking in the Community’ on the global stage by the Financial Times of London.”

He said the bank was also ranked ‘top 3 banks in retail’ by Nigerian consumers in a KPMG banking survey – a major accomplishment for the brand – and overall, the bank delivered a 15  per cent growth in profit after tax to N10.6  billion as at December 2019.

According to Suleiman, the bank recorded an increase in gross earnings, driven majorly by growth in fees and commissions by 24.3 per cent, despite a steady loan base – as it continues to diversify into key sectors of focus – and a decline in trading income.

Lockdown: Your ID card is your pass, minister tells journalists

In 2019, the bank delivered more than 200 per cent increase in loans to its retail and consumer segment with its Loan-to-Deposit Ratio (LDR) above the regulatory limit all year round.

Notably, the bank’s digital lending product continued to set the trend with more than N45 billion disbursed to more than 50,000 customers. Also, interest expense declined by 10.9 per cent driven by a 19.4 per cent year-on-year increase in low-cost deposits as the Bank continues to grow its Retail & Consumer base, resulting in a 110 bps drop in the cost of funds and consequently, a 130 bps increase in net interest margin.