Sterling Bank Plc has reported a Profit Before Tax figure of N4.58 billion for the fourth quarter of 2020 (Q4, 2020), compared to N3.02 billion recorded Q4 2019, which indicates an increase of about 52% Y-o-Y.
This is according to the bank’s recent financial statement made available on the Nigerian Stock Exchange platform and seen by Nairametrics.
The bank had earlier posted a 4.88% increase in its Profit before Tax figures for the nine-month period ended September 2020. In this light, the recent PBT figure is seen as a major improvement and consolidation to the previous figure.
Other key highlights of the Q4 2020 result are;
- Net interest income increased to N18.3 billion due to a drastic reduction in interest expense, +6.5% Y-o-Y.
- Profit After Tax increased to N4.33 billion, +43.1% Y-o-Y.
- Net fees and commission income rose to N5.22 billion, +32.13% Y-o-Y.
- Net trading income increased to N4.99 billion, +59.5% Y-o-Y.
- Other operating income declined to N179 million, -85.6% Y-o-Y.
- Personnel expenses rose to N3.69 billion, +0.5% Y-o-Y.
- Total expenses declined to N20.41 billion, -0.7% Y-o-Y.
- Earnings per share increased to N0.41k in FY 2020, +10.8% Y-o-Y
- Loans and advances to customers marginally declined to N617.6 billion in FY 2020,-0.2% Y-o-Y
- Deposits from customers increased to N951.4 billion in FY 2020, +6.6% Y-o-Y.
Bottom Line: Increases recorded in income-earning components like net trading income, net interest income etc., coupled with a reduction in total expenses resulted in an increase in the pre and after-tax profits of the bank.
Deposits from customers within the period under review also recorded an increase, indicating that the bank is generating enough cash flow, however its loans and advances to customers marginally declined for the aforementioned period.
Compared to other market rivals who have published their Q4 2020 results so far (as of January 31st, 2021), findings by Nairametrics revealed that Sterling Bank posted an unmatched and impressive gain in both PAT and PBT figures, beating the likes of FBN, ETI, Fidelity, and Stanbic in the aforementioned period.