Sterling HoldCo (the parent group of Sterling Bank) is projecting a pre-tax profit of N10.83 billion in Q2 2024, marking a significant 53.7% year-on-year growth from the N7.04 billion posted in Q2 2023.
The projected profit growth signals the continued impressive fortunes of the company, mirrored in its FY 2023 results, where it posted a 13.6% profit growth to hit a pre-tax profit of N23.6 billion, up from N20.8 billion posted in 2022.
The group is poised to achieve an impressive interest income of N60.7 billion during the quarter, reflecting a remarkable 56% year-on-year surge from Q2 2023. This anticipated growth stems from escalating interest rates, following the recent hike in the benchmark rate by the CBN to 22.75%.
However, echoing concerns raised by industry experts, Sterling HoldCo foresees a substantial 141% year-on-year rise in credit impairment charges in Q2 2024, projected at N5.42 billion, up from N2.24 billion reported in the corresponding quarter last year.
Key Highlights: Q2 2024 forecasted versus Q2 2023
Interest Income: N60.7 billion forecasted versus the N38.9 billion realized in Q2 2023
Interest Expense: N23.4 billion forecasted versus the actual N15.9 billion in Q2 2023
Other income, comprising net fees and commission income, and trading income: N18.7 billion forecasted versus the N11.3 billion realized in Q2 2023
Credit impairment charges: N5.4 billion forecasted versus the actual N2.2 billion in Q2 2023
Net operating income: N50.5 billion forecasted versus the actual N34.6 billion in Q2 2023
Profit before tax: N10.8 billion forecasted versus the N7.0 billion realized in Q2 2023
In FY 2023, Sterling Holdco grew its gross earnings by 27% to N214.6 billion from the N169.1 billion recorded in 2022. However, for H1 2024 alone, the company forecasts gross earnings of N152.6 billion, which is a 54% YoY increase from the actual N99.1 billion posted in H1 2023.
Sterling has been performing well in the stock market . Since transitioning into a Holding Company. Since listing on the NGX as Sterling Holdco, the group’s shares have appreciated substantially, gaining about 215.6% in about 11 months to close at N5.05 on March 12, 2024. The group also ended 2023 as the second-best performing banking stock in the NGX.
