Sterling Financial Holdings Posts 12% Profit Growth Amid Revenue Surge
Sterling Financial Holdings Company Plc has announced a 12 per cent increase in its profit after tax, reaching N21.58bn in 2023, up from N19.30bn the previous year. This growth is detailed in the group’s audited financial statement released on the Nigeria Exchange Limited portal on Wednesday.
The report highlighted a 9.35 per cent rise in profit before tax, climbing to N22.69bn. Gross earnings saw a substantial boost, jumping by 42 per cent to N221.77bn from N175.14bn in 2022.
Despite these positive indicators, Sterling Holdco faced challenges with a slight increase in its non-performing loan ratio, which rose by one per cent to reach the regulatory benchmark of five per cent in 2023. Net interest income improved from N76.392bn in 2022 to N83.384bn, and net fees and commission income grew by 16.67 per cent year-over-year, from N22.38bn to N26.11bn.
However, the company also reported a rise in credit losses, which increased to N12.335bn from N9.122bn in the previous year. Operating expenses rose from N52.50bn in 2022 to N59.474bn, and staff costs saw a significant jump from N16.944bn to N22.982bn, attributed to a salary review conducted during the period.
Looking ahead, Sterling Holdco has projected a post-tax profit of N10.01bn and gross revenue of N79.38bn for the second quarter of 2024.
