Sterling Financial Holdings Grows Profit By 52.3% To N16.26bn In First Half Of 2024
Sterling Financial Holdings reported a profit after tax of N16.26bn for the first half of the year, a 52.3 per cent increase compared to N10.68bn 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 N120.88bn from N76.73bn, marking a 57.5 per cent increase, on the back of improved yields on loans and advances and increased investment in high-yielding securities.
Interest expenses increased by 100.3 per cent to N63.29bn from N31.61bn in the prior period and net interest income grew by 27.6 per cent, reaching N57.59bn compared to N45.13bn 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 N11.61bn, supported by higher transaction volumes and enhanced digital banking services.
Net trading income rose by 57.5 per cent to N12.38bn from N7.86bn in H1 2023, attributed to gains in foreign exchange trading and increased client activity in capital markets.
Operating income expanded by 31.8 per cent to N88.91bn in H1 2024 from N67.46bn.
Personnel expenses increased by 39.6 per cent to N13.65bn from N9.77bn, due to staff expansion and salary adjustments.
In the period under review, other operating expenses rose by 28.8 per cent 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 per cent to N1.08bn, as earnings per share rose to 56 kobo from 37 kobo, a 51.4 per cent increase.
Total assets were up by 22.1 per cent to N2.64tn from N2.16tn in H1 2023, underpinned by increased lending activities and higher investment securities.
Total liabilities rose by 18.5 per cent to N2.31tn from N1.95tn in the same period last year, as total equity increased to N330.27bn, up 42.7 per cent.
Sterling Financial Holdings Company recorded a 12 per cent growth in profit after tax to N21.58bn in 2023, up from N19.30bn in the prior year.
