29 October 2019 : Sterling bank released its Q3’19 results today for the period ending 30 September 2019, and they are quite disappointing

They reported Gross Earnings of N 113.04 billion which is a 1.34% reduction y/y.

The silver lining for them was a significant improvement in their transaction led revenue and the funding base riding on their digital channels. Which ultimately led to a 7.7% increase in their operating profit and a Profit after tax of N 7.58 Billion, which unfortunately is still a 7.67% decrease from Q3 2018

They blame the marginal dip in their earnings to the 66% dip in trading income, despite the massive 30.2% growth in fees and commission

They did manage to successfully grow their retail & consumer loans by over 200% which ultimately contributed to the 1.6% growth in interest income (Q3’18 – Q3’19). 

Their SPECT A product , in particular has done wonders as it reports volumes averaging N8 billion per month, reaching over 40,000 individuals as recorded at Q3 2019

Increased traction in the mobilization and retention of low cost deposits NIP Trx - Val. (N'b) resulted in 130 bps decline in cost of funds, and consequently, 11.6% 47.4% decline in interest expense

The slight increase in their cost-to-income ratio is owing to their growth in personnel cost (up 15%) and their steady investment in technology (Infrastructure and Platforms). They justify these investments by recording a c.50% growth in NIP (NIBBS Instant Payment) transaction value and volume respectively Q3 2019

They effectively managed to reduce their NPL ratio by 130 bps to 7.4% on the back of improved performance in some previously classified loans Loans & Adv. (N'b)

Overall, the Bank recorded an 8.9% growth in total assets driven primarily by deposits.

Reporting for EasyKobo on Tuesday , 29 October 2019 in Lagos, Nigeria