Sterling Bank Plc, the tier-2 bank with the unique slogan “Your one-customer bank”, a full service national commercial bank. The bank has been in existence for over 50 years (formerly NAL Bank) and has evolved from the nation’s pre-eminent investment banking institution to a fully-fledged commercial bank.
The Sterling Bank results for the half-year ended June 2020 shows an interesting performance in the major top and bottom-line fundamentals as the bank maintains growth in both Interest Income and Non-Interest Income. The Financial position of the bank also grew Year-to-Date (YTD).
Further analysis of the Sterling Bank H1 2020 result revealed that the bank’s impressive growth in Income and Non-Income lines was spoiled by a 165% growth in Credit Loss expense for the half-year ended June 2020. This however resulted in a 5 percent drop in Pre-Tax Profit for H1 2020 and a subsequent 4 percent drop in Profit After Tax for the period under review.
Here are the other highlights of Sterling Bank H1 2020 results
- Gross Earnings down 3% Year-on-Year (YoY) to N70.23 billion from N72.29 billion in H1 2019.
- The net-interest income of N33.49 billion, up 10% YoY, Jun 2019: N30.41 billion
- Non-Interest Income up by 9% to N44.27 billion YonY from N40.59 billion
- The net Impairment charge for credit losses of N6.46 billion, up 166% YoY, Jun 2019: N2.43 billion
- Profit Before Tax down 5% YoY to N5.68 billion from N6.00 billion
- Profit After Tax for the period also down by 4% YoY to N5.41 billion from N5.66 billion
- Total Assets up 9% year to date (YTD) to N1.29 trillion from N1.18 trillion in Dec 2019
- Loans and Advances to customers down 1% YTD to N615.07 billion from N618.73 billion
- Deposits from customers up 3% YTD to N915.23 billion from N892.66 billion
The Balance Sheet size of Sterling Bank Plc also had a 6-month impressive growth for the period ended 30 June 2020. Total Assets grew 9% to N1.29 trillion in June 2020. While Loan and Advances to Customers were down by 1%, and Deposit from Customers was up by 3% in the 6 months period.