Sterling Bank achieved a significant 44.40% growth in pre-tax profit in Q2 2023

Sterling Bank reported its 2023 second-quarter results showing pre-tax profits grew by 44.40% year on year, reaching N7.044 billion. 

This took half-year pre-tax profits to N11.46 billion versus N8.62 billion in the same period last year. 

Key highlights Q2 2023 vs. Q2 2022: 

• Interest Income N38.91 billion +29.93% YoY 
• Interest Expense; N15. 93 billion +31.04% YoY 
• Net interest income; N22.98 billion +36.39% YoY   
• Net income on fees and commission; N6.19 billion, +15.21% YoY  
• Operating Income N36.87 billion +30.87% YoY 
• Credit loss expense on financial assets N2.25 billion +12.30% 
• Net operating income after impairment N34.63 billion +32.28% YoY 
• Total Expenses N27.54 billion +29.51% YoY 
• Profit for the period N6.63 billion +48.26% YoY 
• Loans and advances to customers N871.935 billion +18.19% 
• Cash and balances with Central Bank of Nigeria N394.859 billion -8.49% 
• Total Assets N2.290 trillion +23.26%  
• Customers’ deposits N1.513 trillion +13.98%. 

Insights:

The growth in pre-tax profit was driven by substantial growth in net interest income, net fees and commission income, and net trading gains.  

• Although the bank experienced a growth in pre-tax profit, it recorded a substantial increase of 136% in the impairment charge on loans.  This increase directly contributed to the 12.30% growth in credit loss expense on financial assets during the period.