DataPro, the Technology-Driven Credit Rating Agency (CRA) has assessed Sterling Bank’s financial performance, capital adequacy, asset quality, liquidity, profitability, corporate governance and risk management in the medium to long-term period.

Feedback from the assessment  enabled the agency to affirm Sterling Bank Plc long-term rating of “BBB+” with a positive outlook for the year 2021/2022.

The “BBB+” indicates slight risk and 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 rating agency said.

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It said that during the year under review, the bank was able to grow its earnings capacity and profitability. Gross earnings rose from N133.4 billion in 2020 to N139.9 billion in 2021. Also, Pre-Tax Profit increased from N12.2 billion in 2020 to N14.3 billion in 2021.

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 N63.5 billion 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.

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. The rating is therefore not an offer to trade in securities nor a substitute for the user’s judgement. It is meant for reference purposes.