DataPro, the Technology-Driven Credit Rating Agency (CRA) has affirmed Sterling Bank Plc long-term rating of “BBB+” with a positive outlook for the year 2021/2022, it said in a statement.
The “BBB+” indicates “Slight Risk,” DataPro said.
“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,” it explained.
DataPro added that its Rating Committee approved Sterling Bank’s rating after an 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 bank was able to grow its earnings capacity and profitability. It noted that gross earnings rose from N133.4 billion (in 2021) to N139.9bn (in 2022). Also, pre-tax profit increased from N12.2bn in 2020 to N14.3bn last year.
DataPro said the bank also has strong liquidity coverage for the mismatch in the maturity profiles of its deposits and loans, noting that 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 Plc is also supported by its diversified revenue base, experienced management, milestones achieved in the retail business segment, very strong asset quality as well as improved profitability.
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