Sterling Bank targets N50 billion gross earnings in Q3 2022

Sterling Bank Plc has said it is targeting to achieve N50.487 billion in gross earnings for the third quarter of 2022.

In its Q3 earnings forecast obtained from the Nigerian Exchange Limited (NGX), the bank also projected to rake in N39.151billion in interest income. Its projection for profit before tax stood at N6.896 billion and N6.344 billion for profit after tax during the stipulated period.

The bank said it also targeting to achieve N24.491 billion for net revenue from funds.

Sterling Bank’s gross earnings grew by 23.2% to N38.1 billion as against the N30.9 billion reported in Q1 2021.

This was primarily due to a 43.3% increase in operating income driven by a 17.5% growth in net interest income and a 40.5% increase in fees & commission.

While it maintained deposit level, it achieved a 6.4% YTD growth in low-cost funds which improved its CASA mix to 72.5% from 68.1% (FY 2021).

OPEX grew by 21.3% driven by an increase in general and administrative expenses, and other operating expenses such as the AMCON surcharge.

Loans & advances increased by 3.4% YTD to N735.8 billion as cost of risk increased marginally by 20 bps to 1.1%. The NPL ratio remained stable at 0.8%.

Overall, the Bank grew its balance sheet by 2.1% to N1.66 trillion and achieved a 47.9% growth in profit after taxes to reach N3.5 billion compared to the profit of N2.4 billion reported for Q1 2021.

 What the bank is saying

Chief Executive Officer Abubakar Suleiman said:

  • “The year commenced with great expectations for growth globally on the back of the recovery achieved in 2021.
  • However, the outbreak of conflict in eastern Europe had resulted in elevated energy prices, stoked inflation globally and undermined the expected pace of economic growth.
  • In Nigeria, this development in addition to supply chain disruptions impacted prices further and resulted in rising inflation.
  • Despite the macroeconomic setbacks, our business showed remarkable resilience as we adapted to our new environment and continued to deliver value to all stakeholders.
  • Our customer-centric strategy has enabled us to continue to support our partners through innovative product offerings. Overall, we closed with a profit after tax of N3.5 billion in the first quarter of the year, a 47.9% improvement on the corresponding period in 2021.”

Other key projections 

  • Net Operating Income – N33.129 billion
  • Operating Expenses – N26.233 billion
  • Cashflow From Investing Activities – N 118.787 billion
  • Cashflow From Financing Activities – N6,329 billion
  • Net Decrease in Net Cash & Cash Equivalents – N7.863 billion

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