By NewsBits
Sterling Bank Plc declared a N5.4 billion profit for the 3rd quarter of 2022, marking a 43 per cent increase from the N3.8billion profit reported in the comparable period last year. The bank’s latest financials showed that net interest income grew by 25 per cent to N21billion from the N16.7billion, which the bank recorded in the 3rd quarter of 2021.
According to the report, the bank during the period increased its interest income to N31billion from N28billion, thanks to debt instruments at amortized cost as well as loans and advances to customers. The bank also cut down on interest expenses to N10billion from N11.7billion. Net fees and Commission income rose to N5billion from N4.6billion. The increase was driven by facility management fees, account maintenance fees, commission & similar income fees and the E-business commission and fees.
Other Operating income for the period recorded N2.9billion from N1.6billion, driven by expansion in rental income, other sundry income gains on disposal of property, plant, and equipment as well as cash recoveries on previously written-off accounts. As a result, the overall operating income for the period stood at N31 billion compared to N25.7billion during the period.
Sterling Bank increased wages and salaries as well as defined a contribution plan to trigger an increase in personnel expenses for the period. Similarly, other operating expenses were valued at N6.97 billion compared to N5.5 billion in the previous year. This is a result of the increase in Asset Management Corporation of Nigeria (AMCON) surcharge, contract services, insurance, and other professional fees. Sterling Bank’s AMCON surcharge for the 3rd quarter stood at N2.29, an increase from N1.85 last year. The amount represents s the Bank’s contribution to a fund established by the AMCON Act., which became eeffective January 1, 2013. Meanwhile, Sterling Bank’s total expenses stood at N23 billion from N12 billion, and the company’s profit before income tax was N5.7 from N3.8 billion.
