Sterling Bank 2020 Revenue Record N11.2billion shortfall as CBN Intervention Aid Firm
- Sterling Bank revenue fell by 7.5% last year, as revenue hit N138.89 billion, below N150 billion generated a year before
- The company's profit before tax and after tax rose during the same period the company reported revenue loss
- Central Bank of Nigeria intervened in the financial sector to allow Sterling Bank to restructure its loans
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Sterling bank recorded a decline in its revenue as the company suffered a shortage of N11.2 billion last year when compared to the earnings the lender reported during the corresponding period of 2019.
The deposit money bank generated N138.89 billion in revenue last year, failing to surpass the N150.19 billion it recorded in the corresponding period of 2019. This reflects a 7.5% decline in revenue generated.
In its financial statements, Sterling Bank reported that its profit before tax rose in 2020 despite a fall in turnover. The company's before tax profit increased to N12.37 billion,, rising beyond the N10.67 billion.
The earnings report further stated that profit after tax also increased to N11.24 billion within twelve months last year, against the N10.60 billion Sterling Bank reported during the same period in 2019.
Source: Twitter
CBN intervenes during COVID-19 pandemic
Despite the revenue shrinking in 2020, Sterling Bank said it was able to mitigate the impact of the COVID-19 pandemic on its operations due to intervention measures by the Central Bank of Nigeria.
In its financials, Sterling Bank said:
The central bank had intervened by allowing banks to restructure their loans in order to reduce bad debts which could have been induced by the pandemic and the lockdown which prevented business operations of non-essential firms.
"In response to the pandemic, the Central Bank of Nigeria introduced unprecedented intervention measures, which include the concessions to commercial Banks to restructure some loans.
"These measures by the Regulators and Federal Government, have mitigated the impact of the crisis and enabled the continued effective functioning of financial markets."
Meanwhile, Legit.ng had earlier reported that Nigerian ride-hailing firm, Pickmeup, is ready to compete against rivals, Uber and Bolt. The local player had been operating in markets with no presence of the giant ride-hailing services.
Source: Legit.ng
