Figures from Sterling Bank’s financial result for the first quarter of 2020 showed a drop in Interest Income to N28.4 billion, following a decline in income on Loans and Advances which was down 10percent compared to last year.
The tier-two bank’s Pre-tax Profit and Profit After Tax declined by 32percent year-on-year and 36percent year-on-year to N2.2bn and N2.1bn respectively.
Net loans to Customers declined 0.4percent year -on-year while Interest Expense also declined 18percent to to N12.9bn.
Read also: FG to now fund 2020 Budget with N5.548trn as Finance Minster meets NASS leadership over amendment
The bank recorded a substantial growth in Customers Deposits which increased15percent year-on-year.
The downward adjustment in fees on banking transactions by the Central Bank of Nigeria, impacted the bank’s earnings, as Net Fee and Commission Income declined 16percent year-on-year to N2.9bn.
The decline in Net Fee and Commission Income was primarily driven by a reduction in E-business commission and fees which was down 10percent year-on-year accounted for 35percent of Fee and commission income) and Other fees and commission (down 31% y/y; accounted for 32% of Fee and commission income).
However, Other Income grew 61percent year-on-year to N1.6bn, largely due to higher gains from bonds and treasury bills.
