Banking Sector

Sterling Financial Holdings’ Profit Surges 97% to N44.8bn in 2024

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Sterling Financial Holdings Company Plc grew gross earnings by 54.2% year-on-year (y-o-y) from N212.9 billion recorded in December 2023 to N328.3 billion in December 2024.

However, for the standalone company, gross earnings declined from N14.9 billion to N6.4 billion. Suggesting a shift in income generation or structural realignments within the Group.

Profitability Surge

  • Profit Before Tax (PBT) for the Group doubled from N22.7 billion in 2023 to N44.8 billion in 2024, showing 97.2% y-o-y growth.
  • Profit After Tax (PAT) saw a 73.8% increase, rising from N21.6 billion in 2023 to N37.5 billion in 2024.
  • The standalone company’s PBT dropped from N13.1 billion to N4.3 billion, while PAT fell significantly from N13.1 billion to N3.3 billion.

Taxation Impact

  • The Group’s tax expense rose sharply from N1.1 billion in 2023 to N7.2 billion in 2024, indicating a higher effective tax rate.
  • The standalone company also incurred a N993 million tax charge, compared to zero taxation in the previous year.

Earnings Per Share (EPS) Growth

  • Basic and diluted EPS for the Group increased from 75 kobo in 2023 to 129 kobo in 2024, marking a 72% increase.
  • For the standalone company, EPS declined from 45 kobo to 11 kobo, reflecting a drop in profitability.

Reserves and Capital Strength

  • The Group transferred N29.3 billion to the General Reserve, compared to only N1.9 billion in 2023, indicating a stronger capital retention strategy.
  • Transfer to reserves declined from N19.7 billion in 2023 to N8.3 billion in 2024, which may indicate a strategic adjustment in capital deployment.

Key Takeaways

  1. Group-Level Performance Strong – The Group achieved robust earnings growth, improved profitability, and higher capital retention, reinforcing its resilience and strategic positioning.
  2. Company-Level Decline – The standalone company saw declines in revenue and profits, suggesting operational shifts or increased cost burdens.
  3. Higher Taxation – The rise in tax expenses reflects a changing tax landscape or improved tax compliance.
  4. EPS Growth Indicates Value Creation – Investors benefited from higher EPS, driven by stronger profitability at the Group level.
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