Sterling Bank Retains“BBB+”Rating with Positive Outlook

Sterling Bank Plc has been given a long-term rating of “BBB+” with a Positive Outlook for the year 2021/2022 by DataPro, the Technology-Driven Credit Rating Agency, in its latest report.

According to a statement by DataPro’s Client Service Manager, Kehinde Rasheed, at the weekend, the “BBB+” indicates Slight Risk, explaining further that the rating 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 said.

The statement explained further 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.

“During the year under review, the Bank was able to grow its Earnings capacity and Profitability. Gross Earnings went up from N133.4b (Yr.20) to N139.9b (Yr.21). Also, Pre-Tax Profit increased from N12.2b (Yr.20) to N14.3b (Yr.21).

“The Bank also has 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 Net Liquidity Surplus of N63.5b in the long-term.,” The statement said.

The statement said, “Sterling Bank Plc had a Short-Term Rating of “A2” which indicates Fair Credit Quality and adequate capacity for timely payment of financial commitments. DataPro notes that the rating carries a maximum shelf life of 12 calendar months, in line with international best practice.”