Sterling Bank Increases Profit By 20.2% to N13.5bn in 2021

Sterling Bank Plc has announced an increase of 20.2 per cent in its Profit After Tax (PAT) to N13.5billion in 2021 audited results for the period ended December 31, 2021, from N11.2billion reported in 2020.

The lender grew its gross earnings by 4.8 per cent to N142.3billion from N135.8billion in 2020, driven by a 28.5 per cent growth in non-interest income.

According to the results released on the Nigerian Exchange Limited (NGX), interest expense declined by 8 3 per cent resulting in a 21 3 per cent drop in the cost of funds

The explained in presentation to investors explained that “This was driven by a 271 per cent growth in customer deposits We continue to strengthen our risk management practices, with NPL moderating from 1.9per cent in 2020 to 0.7 per cent in 2021. Cost to income ratio declined to 75per cent despite a 9.9 per cent increase in operating expenses arising from inflationary pressures and FX risks

“Our NIP (NIBSS Instant Payments) transaction volume significantly grew by 51 4per cent compared to the previous year on the back of investments made in our digital platforms

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

The Chief executive officer of Sterling Bank, Abubakar Suleiman in a statement 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.

“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 to thrive in a dynamic environment We are unwavering in our commitment to building a forward-thinking organization focused on delivering the best value to our stakeholders.

“Overall, the Bank delivered a 20 2 growth in profit after tax to N 13 5 billion as of December 2021.”

Digital platforms Pay with Specta There has been remarkable growth in this digital product The value of customer transactions grew from 0 35 billion in 2020 to over 36 billion in 2021. Awarded 2021 ‘People First Organization’ by the Chartered Institute of Personnel Management of Nigeria (CIPM).

On the heels of profit growth, the management declared a dividend of 10 kobo per ordinary share of 50 kobo each, subject to deduction of appropriate withholding tax, which will be paid to shareholders whose names appear in the Register of Members as at the close of business on May 27^th, 2022.