Sterling Bank increased business revenue by 265% in the third quarter of 2020.
Nigeria online news reports that Sterling Bank Plc, a full-service national commercial bank, has reported a business income of N7.1 billion for the third quarter ended September 30, 2020 compared to N1.9 billion for the corresponding period of 2019 , which represents an increase of 264.7 percent.
The bank had a remarkable financial performance despite the prevalence
uncertainties that characterized the macroeconomic environment as a result of the
outbreak of the Covid-19 pandemic and the consequent fiscal reforms by the Federal
In his comments on the impressive performance, Mr. Abubakar Suleiman, Manager
The bank’s director and chief executive officer (MD / CEO) said: “With
activity rebounding in the third quarter, after the gradual relaxation at the national level
blocking, we continue to leverage our existing remote work policy to improve
productivity of the workforce while ensuring uninterrupted service delivery to
and new clients.
Our performance continues to reflect positive results from strategic decisions and
investments in our focus areas, as we continue to record a significant improvement in
both financing and operating costs. Overall, we saw a 7.2 percent increase in
operating income and an after-tax profit of N7.37 billion despite prevailing
uncertainties surrounding the COVID-19 pandemic and recent tax reforms. “
The CEO said, a 26.2% drop in fee income caused by the downward revision of
e-banking fees and slower loan origination due to prolonged lockdown
it was moderated by a 264.7% increase in operating income.
It said the growth on the balance sheet was driven by 26.5 percent growth in low costs.
funds, which saw the bank’s CASA mix improve to 71 percent from 60 percent,
generating a growth of 6.6 percent in customer deposits. Our cash and short term
balances increased in line with higher regulatory reserves while interest income
it also decreased by 6.7 percent, which was offset by a 17 percent decrease in interest
expenses. This produced a 120 bp drop in the cost of funds and, consequently, a reduction of
bp increase in net interest margin.
Suleiman noted that, in terms of asset quality, “we proactively increase our cost of ownership
risk by 100 bp to 1.9%, while registering a marginal increase in the delinquency rate to 2.9%,
well below our 5% target “
He explained that the decrease in OPEX was achieved through administrative moderation
expenses despite growth in other operating expenses, including AMCON and
The CEO said the bank was able to maintain a strong capital and liquidity position of
16.1 percent and 32.5 percent respectively above the regulatory benchmark, adding that
Overall, the bank made an after-tax profit of Naira 7.37 billion during the 9-month period.
Sterling Bank Plc is a leading national commercial banking establishment in Nigeria.
It began operating as NAL Bank in 1960. Today, with more than 1 trillion N in total
assets, 160 business offices and more than 800 ATMs nationwide, Sterling Bank has
become a major financial institution. The bank is proud to be ‘its only customer
bank ‘that celebrates each customer as a unique individual. For more information,
please visit http://www.sterling.ng.