In its most recent assessment, DataPro, a credit rating agency (CRA), confirmed Sterling Bank Plclong-term .’s rating of “BBB+” with a favorable outlook for the years 2021–2022.
According to the research, the grade of “BBB+” represents a fair level of risk as well as fair financial health, operating performance, and business profile when compared to the benchmark set by DataPro Limited.
According to DataPro, Sterling Bank Plc can fulfill continuing obligations, but its financial stability is susceptible to unfavorable changes in the state of the economy.
After evaluating the company’s financial performance, capital adequacy, asset quality, liquidity, profitability, corporate governance, risk management, and risk factors of its present healthy profile in the medium to long term, the DataPro rating committee approved the rating.
According to the statement, the bank was successful in expanding both its earning potential and profitability during the reviewed year.
According to it, gross earnings increased from N133.4 billion in year 20 to N139.9 billion (Yr.21).
Pretax profit increased from N12.2 billion (Year 20) to N14.3 billion (Yr.21).
Additionally, the bank has significant liquidity coverage for the discrepancy in the maturity profiles of its deposits and loans. When combined with the liquid assets of the bank, this results in a sufficient cushion and a net liquidity surplus of N63.5b over the long run.
The bank’s rating is additionally supported by its varied revenue stream, skilled management, significant accomplishments in the retail business sector, very solid asset quality, and increased profitability.
The short-term rating for Sterling Bank was “A2,” which denotes fair credit quality and sufficient ability to meet financial obligations on schedule.
According to worldwide best practice, DataPro states that the rating has a maximum shelf life of 12 calendar months.
It was further stated that the rating was only intended to be used as a guide and not as a solicitation to buy or sell shares.
The short-term rating for Sterling Bank was “A2,” which denotes fair credit quality and sufficient ability to meet financial obligations on schedule.
According to worldwide best practice, DataPro states that the rating has a maximum shelf life of 12 calendar months.
It was further stated that the rating was only intended to be used as a guide and not as a solicitation to buy or sell shares.
