Sterling Bank Plc grew profit after tax from N2.065 billion recorded in the first quarter (Q1) 2020 to N2.395 billion in the first quarter of 2021.
In the bank’s unaudited financial statement, gross earnings moderated to N31.016 billion in the quarter under review, down from N32.916 billion posted in the corresponding quarter of 2020.
The lender’s operating income rose from N19.968 billion in Q1 2020 to N20.088 billion in Q1 2021, while net operating income after impairment moderated slightly from N18.779 billion in the same quarter of 2020 to N18.321 billion in the quarter under review.
Sterling bank reduced total expenses incurred to N15.816 billion in Q1 2020, down from N16.560 billion in Q1 2021.
Profit before tax stood at N2.505 billion in Q1 2021, up from N2.219 billion achieved in Q1 2020.
Total assets increased to N1.393 trillion in Q1 2021 from N1.299 trillion posted in the final quarter of 2020.
Sterling Bank’s Financial Highlights
• Gross earnings contracted to N31.0 billion primarily due to an 11.0% dip in interest income. This was however moderated by a 27% growth in noninterest revenue.
• We recorded a 15.6% decline in interest expense. This delivered an 80 bps drop in cost of funds as yield on earning assets declined by 210bps. Consequently, net interest margin stood at 7.2%.
• Moderated operating expense further by 4.5% driven by reduction in administrative and depreciation expenses as we continued to optimize our investments across board.
• Customer deposits grew by 9.3% while maintaining a healthy deposit mix of 70.5% in low-cost funding.
• Loans & advances increased by 6.0% YTD to N632.5 billion as cost of risk increased marginally by 10 bps to 0.9%. NPL ratio remained stable at 1.9%.
• Overall the Bank grew its balance sheet by 7.3% to N1.39 trillion and delivered a profit after tax of N2.40 billion in the first quarter of the year.
Commenting on the bank’s performance, Abubakar Suleiman, Chief Executive Officer, Sterling Bank Plc, said “During the quarter, the campaign to vaccinate the global population against COVID-19 gained ground, bolstering consumer and investor confidence. At the macro level, treasury yields, and oil prices retraced towards their historical averages, contributing to reserves accretion and easing the pressure in the foreign exchange markets.
“Riding on the improved operating environment, the bank recorded a year-on-year double-digit growth in profit after tax in the first quarter, aided by a 9.3% rise in customer deposits and a 15.6% decline in funding cost.
“In furtherance of our transformation agenda, we formally launched our digital commodity marketplace, SABEX. This is a product of three years of experimentation and extensive consultation with all key stakeholders and an important component of our strategy to use technology to improve productivity for players across the HEART sectors.
“Overall, we closed with a profit after tax of N2.40 billion in the first quarter of the year, a 16% improvement on the corresponding period in 2020.”
CBN Grants Lotus Bank Non-Interest Banking Licence
The Central Bank of Nigeria (CBN) on Thursday, June 17, granted a non-interest banking licence to Lotus Bank Limited.
This was contained in a statement titled ‘CBN grants Lotus Bank licence to commence non-interest banking operations’.
The statement read in part: “Lotus Bank seeks to pursue the mission of creating value and growth for all through digital innovation and best-in-class customer experience for Nigerians.”
Commenting on the grants, the founder and managing director of Lotus Capital (the pioneers of non-interest finance in Nigeria), Hajara Adeola, said the bank was starting its operations on a solid foundation of experienced leadership and a strong advisory council of experts.
Adeola explained that the bank is managed by a team of seasoned professionals and financial experts led by the Managing Director/Chief Executive Officer, Kafilat Araoye, who has over 25 years of commercial banking experience.
She added that the institution’s focus and guiding principle is ‘to deliver an alternative option to interest-based banking and to cater to the needs of not just the banked but also the underbanked and unbanked population.
According to her, non-interest banking was geared towards supporting the real sector and Lotus Bank aimed to improve financial inclusion in the country.
The founder of the bank, however, disclosed that it would operate transparent pricing models as it was the norm in non-interest banking.
The statement added: “Our values are deeply rooted in partnership. A critical component of our mission is the provision of innovative solutions that drive ethical prosperity for all stakeholders.
“We pride ourselves on digital solutions that provide our customers with the convenience of unlimited access to our services and products.”
“Our products and service offerings will include non-interest business financing, deposit products (current, savings and investment accounts) and personal financing.”
Fidelity GAIM Season 4 Final Draw To Hold On July 22
One of the leading financial institution in Nigeria, Fidelity Bank Plc, has announced plans to enrich the lives of fifteen Nigerians with a total of 39 million Naira at the final draw of the “Get Alert in Millions Campaign (GAIM)” Season 4 savings promo, slated for July 22, 2021.
The savings promotion, which is specifically aimed at promoting the culture of saving among Nigerians, is one of the bank’s many initiatives aimed at rewarding new and existing customers for their unwavering loyalty and patronage.
Despite the fact that the promotion was halted in 2020 due to the Coronavirus (Covid-19) Pandemic and the resulting global lockdown, hundreds of Nigerians have benefited from this unique reward scheme in which lucky customers are credited with millions of naira and consolation prizes via a draw system.
The Chairman, Promo Committee, Fidelity Bank Plc, Mr. Richard Madiebo expressed his delight at the resumption of the savings promotion, stating that the campaign seeks to reward customers for their loyalty and patronage. According to Mr. Madiebo, for the past twelve years, the bank has empowered new and existing customers, providing an avenue for many to change their fortunes through its savings Promo.
He stated that the bank takes pride in keeping its promises, adding that the lender would continue to look out for innovative ways to satisfy and enrich its customers across the nation.
“And as we wind down on the 4th season of the GAIM promo, we are elated at the prospect of not only driving financial inclusion across Nigeria but also at the unique opportunity to enrich the lives of our customers especially in times of economic uncertainties”, noted Madiebo
Over the years, the leading tier two Bank has continued to intensify its efforts and innovate ways towards ensuring customer and stakeholder satisfaction. Through this promo, Fidelity Bank has promoted financial inclusion through digital channels and enriched the lives of its customers even in times of economic uncertainties.
Zenith Bank Gets Recognition for Best Corporate Governance
Zenith Bank Plc’s strong business ethos, ethical values, and impeccable corporate governance have been rewarded with ‘Best Corporate Governance’ Financial Services’ Africa 2021 award by the Ethical Boardroom.
The bank, in a statement yesterday, said the award, published in the June 2021 edition of The Ethical Boardroom magazine, recognised the bank’s adherence to global best practices and institutionalisation of corporate governance as well as setting an industry-wide example of best practices in that field.
Commenting on the award, Group Managing Director/Chief Executive of Zenith Bank Plc, Mr. Ebenezer Onyeagwu, said: “This recognition is a testament to our commitment to quality, accountability, fairness and transparency in our engagement with all stakeholders.
“It is also an affirmation of the bank’s professionalism, ethical conduct and sustenance of global best practices and standards which is attributable to the joint collaboration of the management and staff.”
The award comes on the heels of others and recognitions that the bank has garnered in recent times for its track record of excellent performance and commitment to global best practices.
For instance, Zenith Bank was voted as Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020; Best Bank in Nigeria in the Global Finance World’s Best Banks Awards 2020 and 2021, and Best Corporate Governance’ Financial Services’ Africa 2020 by the Ethical Boardroom.
Also, the bank emerged as the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021, and Number One Bank in Nigeria by Tier-1 Capital in the “2020 Top 1000 World Banks” Ranking by The Banker Magazine.
Similarly, the bank was recognised as Bank of the Decade (People’s Choice) at the THISDAY Awards 2020, Retail Bank of the year at the 2020 BusinessDay Banks and Other Financial Institutions (BOFI) Awards, and Best Company in Promotion of Good Health and Well-Being as well as Best Company in Promotion of Gender Equality and Women Empowerment at the Sustainability, Enterprise and Responsibility (SERAS) Awards 2020.
Zenith Bank has been generally adjudged a corporate governance compliant bank by the Nigerian Exchange Limited (NGX) hence its listing on the Premium Board of the Exchange.
The bank continues to sustain this reputation and reappraise its processes to ensure that its business conforms to the highest global standards at all times.
The bank places a premium on its core business strategy anchored on people, technology and service, to create value for its numerous clientele.
“With a team of dedicated professionals, the bank leverages its robust Information and Communication Technology (ICT) infrastructure to provide cutting-edge solutions and products through its network of branches and electronic/digital channels,” the statement added.
Business4 weeks ago
End Of The Road For Internet Explorer As Microsoft Pulls The Plug
Cryptocurrency4 weeks ago
Can cryptocurrency survive regulators? Here’s what Ripple CEO says about XRP’s future
Ethereum4 weeks ago
Ethereum Closes In on Long-Sought Fix to Cut Energy Use Over 99%
Cryptocurrency4 weeks ago
BankDhofar Launches Mobile Banking Payments from Oman to India with RippleNet
Cryptocurrency2 weeks ago
Wei Zhou, Binance’s Chief Financial Officer Resigns
Cryptocurrency4 weeks ago
US SEC To Work With Congress To Regulate Crypto Exchanges
Education3 weeks ago
Senate Passes Bill To End HND/BSc Discrimination
Cryptocurrency3 weeks ago
Crypto Traders Can Now Trade Dogecoin on Coinbase Pro