Sterling Bank’s cost-cutting boosts 2020 profits

Sterling Bank Plc has posted a profit of N11.69bn for the 2020 financial year an improvement of 10 per cent when compared to N10.6bn made in 2019.

The 2020 unaudited financial statement of the bank showed that its interest income was lower than what it made in 2019 from loans and advances declined to N88.371bn in 2020 compared to N97.88bn made in 2019.

Its 2020 interest income dropped to N116.62bn (2019’s was N127.29bn) but the bank’s net interest income of N67.5bn was a 4.3 per cent improvement compared to N64.69bn made in 2019. This was occasioned by a 21 per cent reduction in interest expense.

The bank’s lending to customers, particularly individuals, saw a slight reduction last year compared to 2019 as customers’ deposits went up to N951.35bn as against N892.66bn in 2019.


Key indices

Interest Income down eight per cent to N116.622bn (2019: N127.29bn)

Interest Expense down 21 per cent to N49.12bn (2019: N62.59bn)

Net Interest Income improved by 4.3 per cent to N67.50bn (2019: N64.69bn)

Operating Income up 8.7 per cent to N95.26bn (2019: N87.603bn)

Credit Loss expense on financial assets up 129 per cent to N13.39bn (2019: N5.83bn)

Profit after tax up 10 per cent to N11.69bn (2019: N10.6bn)

Earnings per share up 10 per cent to 41,000 (2019: 37,000)

Loans and advances down 0.2 per cent to N617.64bn (2019: N618.73bn)

Total assets up 10.1 per cent to N1.3tn (2019: N1.18tn)

Deposits up 6.5 per cent N951.358bn (2019: N892.66bn)

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