Sterling Bank Plc is heading for a full year 2020 loss as its profit for the nine months ended September 30, 2020, dipped to N7.369bn from N7.579bn, in the review period of 2019.
The lender’s gross earnings dropped year-on-year (yoy) from N109.664bn in the third quarter of 2019 to N106.067bn in the review period of 2020, according to its filing with the Nigerian Stock Exchange (NSE).
Its interest income for the period declined to N88.69 from N95.08bn in the 2019.
Net fees and commission income also dropped from N10.66bn in the third quarter of 2019 to N7.86bn in the corresponding period in 2020.
The shrinking Q3 profit is a clear indication that the tier-2 bank is heading for another year loss.
The bank’s unaudited condensed and interim financial statements for the half year ended June 30, 2020 showed that its profit declined to N5.414billion from N5.662 billion in the same period of 2019. Pre-tax profit depreciated to N5.678billion from N6.001 billion in the prior year.
Gross earnings dipped from N72.29 billion posted a year ago to N70.23 billion in the review period of 2020.
Also, deposit from customers declined to N18.22 from the N22.66billion in the half year 2019, while earnings per share fell to 19 kobo from 20 kobo in the previous year.
Consequently, the directors did not recommend payment of any dividend for the shareholders of the bank in the half year.
On assumption of duty as the Bank’s Chief Executive Officer, in 2018, Abubakar Suleiman, had set the bank’s mid-term objectives (2017-2021) to include growing the lender’s market share, diversifying its funding base, reducing non-performing loans and increasing return on average equity.
He is yet to fulfil these set targets even as the bank’s declining profits have continued to unsettle its shareholders.
The last time Sterling Bank paid dividend was in 2018, when it paid a paltry 2 kobo per share to its shareholders.