Sterling Bank Plc increased its Profit After Tax for the year 2022 by 38% to N18.6 billion compared to the N13.5 billion filed in the previous year.
The bank’s interest income improved to N128 billion in 2022 compared to the N111 billion recorded in the previous year as deposits from banks, customers and other borrowed funds increased for the period, Investors King reports.
Interest expense also improved to N52 billion compared to the N45 billion in the previous year as deposits from banks and customers, as well as other borrowed funds, increased for the period while the net interest income stood at N76 billion from N66 billion in the previous year.
Net Fees and commission income amounted to N21 billion from N19 billion in the previous year. This is as Facility management fees, account maintenance fee, commissions and similar income all increased during the year – Although, Fees and commissions income reported excludes amount included in determining effective interest rate on financial assets that are not at fair value through profit or loss.
Similarly, net trading income rose on the back of Bonds while Treasury bills and foreign exchange trading saw a decline. The banks also saw foreign exchange revaluation loss for the period.
Important to note is the fact that foreign exchange trading income includes gains and losses from the spot and forward contracts and other currency derivatives while other foreign exchange differences arising on non-trading activities are presented as foreign exchange revaluation loss.
Other operating income at N11 billion from N6 billion was driven by other sundry income, Cash recoveries on previously written-off accounts and other items including income on FX forward discounting, Mudaraba Commodity Income among others.
The bank reported a credit loss expense on financial assets to the tune of N8.5 billion in 2022 compared to N9.8 billion in 2021. This is as impairment charges on loans and contingents, other assets, and investment securities declined for the period, hence the net operating income after impairment stood at N107 billion from N87 billion in the previous year.
Total expenses improved to reach N87 billion compared to the N73 billion the previous year as the bank saw improvement in its personnel expenses, other operating expenses, general and administrative expenses and other property, plant and equipment costs.
Profit before tax stood at N20 billion from N14 billion the previous year while earnings per share was 65 kobo compared to N47 kobo in previous year.