Sterling Holdings post-tax climbs by 52.3%

Sterling Financial Holdings reported a profit after tax of N16.26bn for the first half of the year, a 52.3 percent increase compared to N10.68 percent in the same period last year.

This growth was driven by higher net interest income and efficient cost management.

This was disclosed in the condensed unaudited group interim financial statements for June 2024. The company’s interest income rose to N120.88 billion from N76.73 billion, marking a 57.5 percent increase, on the back of improved yields on loans and advances and increased investment in high-yielding securities.

Interest expenses increased by 100.3 percent to N63.29 billion from N31.61 billion in the prior period and net interest income grew by 27.6 percent, reaching N57.59 billion compared to N45.13 billion in H1 2023.

The increase resulted from growth in interest income, which outpaced the rise in interest expenses.

The company reported net fees and commission income of N15.22bn, a 31.1 per cent increase from N11.61 billion, supported by higher transaction volumes and enhanced digital banking services.

Net trading income rose by 57.5 percent to N12.38 billion from N7.86 billion in H1 2023, attributed to gains in foreign exchange trading and increased client activity in capital markets.

Operating income expanded by 31.8 percent to N88.91bn in H1 2024 from N67.46bn.

Personnel expenses increased by 39.6 percent to N13.65 billion from N9.77 billion, due to staff expansion and salary adjustments.

In the period under review, other operating expenses rose by 28.8 percent to N19.29bn from N14.98bn in H1 2023 and credit loss expenses remained relatively stable, increasing slightly by 7.3 per cent to N4.47bn.

The firm also saw income tax expenses increase by 39.3 percent to N1.08bn, as earnings per share rose to 56 kobo from 37 kobo, a 51.4 percent increase.

Total assets were up by 22.1 percent to N2.64tn from N2.16tn in H1 2023, underpinned by increased lending activities and higher investment securities.

Total liabilities rose by 18.5 percent to N2.31 trillion from N1.95 trillion in the same period last year, as total equity increased to N330.27 billion, up 42.7 percent.

Sterling Financial Holdings Company recorded a 12 percent growth in profit after tax to N21.58 billion in 2023, up from N19.30 billion in the prior year.

During this period, its profit before tax improved by 9.35 percent to N 22.69 billion.