Sterling Bank reports decline in PAT by 36.6% in Q1

Sterling bank plc has reported 36.3 per cent decline in Profit After Tax (PAT) in its unaudited result and accounts submitted to the Nigerian Stock Exchange (NSE) last week.

The bank reported N2.1billion PAT in the first quarter (Q1) 2020 results as against N3.2billion reported in Q1 2019.

From the income statement, gross earnings was down by 6.7 per cent to N32.9 billion in Q1 2020 from N35.3 per cent reported in Q1 2019 while fees & commission dropped significantly by 16.2 per cent to N2.9billion from N3.5billion reported in 2019.

The bank explained that, Contracted gross earnings primarily due to a 16.2 per cent dip in fees and commission drove by downward review of electronic bank fees by the Central Bank of Nigeria (CBN), despite a 126.2 per cent growth in trading income.”

In the period under review, the Tier-2 bank reported 8.3 per cent increase in operating expenses to N76.6 billion from N15.3 billion reported in Q1 2019.

According to the bank, “growth in OPEX was driven by growth in depreciation and amortization costs and other operating expenses including AMCON and insurance fees.”

Sterling bank’s loans & advances gained 1.4 per cent to N627.1billion as of March 31, 2010 from N618/7billion reported in 2019 financial year while customers deposit gained 0.7 per cent to N898.6billion compared to N892.7billion reported in 2019 full-year result and accounts.

The bank said, Non-Performing Loan (NPL) ratio delinked by 20 basis points to two per cent on the back of improved performance in some previously classified loans.

The Chief Executive officer, Sterling Bank, Mr Abubakar Suleiman, in a statement said, “It has been a remarkable quarter, defined by the global pandemic and our commitment to protecting our people and our customers.

“We encouraged innovation to increase Covid-19 testing capacity promoted social distancing and supported healthcare workers on the frontline.

“To accomplish this, we backed LifeBank’s mobile drive- through mass testing centre in partnership with Nigeria institute of Medical Research, funded free online medical consultations for our employees and customers through Tremendoc and seeded the N1billion Healthcare Workers Fund through our foundation.

“In light of the current economic challenges, we remain resoult in our strategic decision to focus on the high growth (HEART) sectors of the economy, leveraging critical partnerships and our digital capabilities to meets our customers’ needs whilst ensuring the long-term growth of our business.”