Sterling bank Plc has announced 41 per cent increase in profit after tax to N8.0billion in its half year (h1) unaudited financial statement for period ended June 30, 2022 from N5.7billion reported in corresponding half year results.
The lender’s gross earnings that grew by 16.5per cent to N78.4 billion in H1 2022 as against the N67.3 billion reported in H1 2021, was a combination of a 48.2per cent increase in non-interest income and an 8.8per cent growth in net interest income.
In the period under review, Sterling Bank grew operating expenses by 18 per cent to N40.3billion in H1 2022 from N34.2billion in H1 2021, driven by an increase in other operating expenses and other property, plant, and equipment costs such as the repairs and maintenance of PPE.
From balance sheet position, Sterling Bank grew its balance sheet by 11.4per cent to N1.8 trillion as of June 30, 2022 from N1.63 trillion reported in 2021 full financial year.
The Chief Executive Officer, Sterling Bank, Abubakar Suleiman in a statement said, “The macro-economic environment continues to be pressured by global supply chain disruptions which had resulted in rising inflation.
“At Sterling Bank, we continue to look for ways to alleviate the challenges experienced by our stakeholders through our sustainable banking practices and innovative products.
“We launched the first Africa Social Impact Summit and unveiled the LAGID partnership, the first state smart ID card product in West Africa.Our Half-year results reaffirm our growth strategy and diversified business model.
“We continue to enrich the lives of our stakeholders and have created investment platforms that enable customers create wealth by accessing high-quality assets like luxury real estate, infrastructure bonds and precious metals.
“In the second half of the year, we will continue to enhance our execution capabilities to deliver solutions that will enable our stakeholders thrive in a dynamic environment.
“Overall, the bank delivered a profit after tax of N8.0billion in the first half of the year, a 40.8per cent improvement on the corresponding period in 2021.
“In terms of asset quality, Sterling Bank’s Non-Performing Loans (NPL) increased to 1.1per cent as of June 30, 2022 from 0.7 per cent reported in 2021, while the cost of risk ratio remained flat at 0.9per cent.
The Tier-2 bank maintained a strong capital and liquidity position recording 14.4per cent and 31.3per cent, respectively above Central Bank of Nigeria (CBN) benchmark.