DataPro, a technology-driven credit rating agency, has in its latest report affirmed Sterling Bank Plc long-term rating of “BBB+” with a positive outlook for the year 2021/2022.
A statement quoted the firm as saying, “The “BBB+” indicates slight risk. It shows fair financial strength, operating performance, and Business Profile when compared to the standard established by DataPro Limited.
“Sterling Bank Plc, in our opinion, has the ability to meet its ongoing obligations, but its financial strength is vulnerable to adverse changes in economic conditions.”
The statement noted that DataPro Rating Committee approved the rating after assessment of the company’s financial performance, capital adequacy, asset quality, liquidity, profitability, corporate governance and risk management as well as risk factors of its current healthy profile in the medium to long term period.
The statement further read, “During the year under review, the bank was able to grow its capacity and profitability. Gross Earnings went up from N133.4bn to N139.9bn. Pre-Tax Profit increased from N12.2 billion to N14.3 billion.
“The bank also has a strong liquidity coverage for the mismatch in the maturity profiles of its Deposit and Loans, the Liquid Assets of the Bank provide adequate cushion resulting in a Net Liquidity Surplus of N63.5bn in the long-term.
“The rating of Sterling Bank is also supported by its diversified revenue base, experienced management, milestone achieved in the retail business strong asset duality as well as improved profitability.”
Contact: [email protected]
