Sterling Financial Holdings reported a post-tax profit of N16.26 billion for the first half of the year, representing a significant increase of 52.3% compared to the N10.68 billion recorded in the corresponding period of the previous year.

The increase in performance was primarily attributed to a rise in net interest income and effective cost management strategies. This information was presented in the condensed unaudited group interim financial statements for June 2024. The company experienced a significant increase in interest income, which rose to N120.88 billion from N76.73 billion, reflecting a 57.5 percent growth, driven by enhanced yields on loans and advances as well as greater investments in high-yield securities.

Interest expenses surged by 100.3 percent, reaching N63.29 billion compared to N31.61 billion in the previous period, while net interest income saw a 27.6 percent increase, amounting to N57.59 billion, up from N45.13 billion in the first half of 2023. This growth in net interest income was primarily due to the increase in interest income, which exceeded the rise in interest expenses.

The company reported net fees and commission income of N15.22 billion, marking a 31.1 percent increase from N11.61 billion, bolstered by higher transaction volumes and improved digital banking services. Additionally, net trading income rose by 57.5 percent to N12.38 billion from N7.86 billion in the first half of 2023, attributed to gains in foreign exchange trading and heightened client activity in capital markets.

Operating income grew by 31.8 percent, reaching N88.91 billion in the first half of 2024, up from N67.46 billion. Personnel expenses increased by 39.6 percent to N13.65 billion from N9.77 billion, driven by staff expansion and salary adjustments. During the review period, other operating expenses rose by 28.8 percent to N19.29 billion from N14.98 billion in the first half of 2023, while credit loss expenses remained relatively stable, increasing slightly by 7.3 percent to N4.47 billion.

The firm also experienced a 39.3 percent rise in income tax expenses, amounting to N1.08 billion, as earnings per share increased to 56 kobo from 37 kobo, representing a 51.4 percent growth. Total assets rose by 22.1 percent to N2.64 trillion from N2.16 trillion in the first half of 2023, supported by increased lending activities and higher investment in securities.

The company experienceed an 18.5% increase in total liabilities, rising from N1.95 trillion to N2.31 trillion. Simultaneously, total equity witnessed a significant 42.7% growth, reaching N330.27 billion.

Sterling Financial Holdings Company achieved an impressive 12% growth in profit after tax, moving from N19.30 billion in the previous year to N21.58 billion in 2023.