Sterling Bank after tax profit jumps 9.4% amid increase regulation
Despite an increased regulation that defines the banking sector operation in the second half of 2019, Sterling bank Plc (www.sterling.ng) bolstered performance as both top and bottom line expanded.
Sterling bank Plc unaudited report for financial year 2019 revealed that the group bolstered earnings as post tax profit increased by 9.4% year on year to N10.8 billion.
A detail look into the numbers show that the bank actually achieved double digits growth in pre-tax profit as the management efforts in the year saw customers’ deposits up 17.36% while total assets grew to N1.203 trillion.
In its unaudited financial statement released to the Nigerian Stock Exchange, profit before tax obligation surged by15.01% year on year, pitched at N10.913 billion as against N9.489 billion reported in 2018.
Down the line in the financial statement, the bank saw a single digit increase in post-tax profit from N9.218 billion in 2018 to N10.8 in 2019.
Specifically, the increase in profit for the year represents a 9.4% uptrend when compare with N9.218 billion achieved in 2018.
At N1.84 to a share at the end of trading session on Friday, Sterling bank Plc. market cap was valued at N52.974 billion on 28,790,418,126 shares outstanding.
The stock has declined 3.16% year to date, having peaked at N2.04 kobo.
The review of the numbers show a 10.62% increase in operating income for the year. In absolute term, operating income grew from N78.826 billion to N87.2 billion.
While the group income from interest yielding assets expanded, it associated cost in term of interest expenses decline markedly.
This suggests that the management was able to tame its cost of funds, which comes from term deposits repricing and aggressive mop up of cheap deposits.
The unaudited statement shows that interest income expanded by about 2%, interest expenses paid to providers of fund slipped by 10.89% in the period.
In the year, the group total operating expenses spike to N70.267 billion along with increase credit loss expense on financial assets.
Impairment charge on credit loss on financial assets hit N6.02 billion from N5.843 billion in the corresponding year in 2018.
Meanwhile, the group total comprehensive income expanded significantly on the back of net change from debt instruments measured at fair value and reclassification to profit and loss.
While net change in fair value surged from negative N2.584 billion in 2018 to N5.696 billion, reclassification to profit and loss added N4.597 billion to the group comprehensive income.
The group reported that its loan to customers declined, albeit marginally from N621.017 billion to N614.784 billion at the end of the financial year 2019.
Meanwhile, deposits expanded steeply by 17.36% from N760.608 billion to N892.661 billion at the end of financial year 2019.
Sterling Bank after tax profit jumps 9.4% amid increase regulation by Gbenga Anisere
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