Huge Losses As Sterling Bank Shares Crashes

6 months ago 112

Sterling Bank shares reportedly dipped drastically in the 2021 financial year which marked a bank run for investors.

Naija News reports that the dipped dropped investors’ investment in the bank by 28.10 percent.

According to findings, Sterling Bank shares kicked off trading on January 4, 2021 at N2.10 but later sold at N1.51 at the close of business on December 31, 2021.

It was gathered that investors lost 21.50 percent of their investment in the bank in 2021.

Investors have however gained 2.61 percent this year as Sterling Bank’s equity has gone up from N1.53 on January 4 to N1.57 at the close of the market on January 18.

The lender has a low dividend payout, having paid only 21 kobo as dividend in the last five financial years.

According to financial experts, this may be one of the reasons investors were unwilling to invest in its equity last year. It paid just 5 kobo as a dividend in the 2020 fiscal year.

In a 26.55 percent improvement to the N7.37 billion declared in September 2020, Sterling Bank posted N9.47 billion post-tax profit in the same period in 2021.

The bank disclosed that N156.89 billion was raked in as gross revenue in the third quarter of 2021, 6.85 percent higher than the N146.84 billion it made in the same period in 2020.

Naija News gathered that Sterling Bank’s income growth was due to the 65.30 percent and 104.02 percent rise in net fee and commission income and other operating income respectively.

Net Operating Income went up by 19.4 percent to N67.9 billion, which was attributed to the growth in credit loss expenses.

Download NAIJA NEWS app:

Download Naija News App for Android
Read Entire Article