| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 0/6 |
| Past Performance | 3/6 |
| Financial Health | 6/6 |
| Dividends | 1/6 |
STERLNBANK Overview
Sterling Bank Plc provides various commercial banking services primarily to multinational companies, financial institutions, individuals, small businesses, partnerships, and commercial entities in Nigeria.
Sterling Bank Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | ₦1.50 |
| 52 Week High | ₦1.40 |
| 52 Week Low | ₦2.65 |
| Beta | 1.29 |
| 1 Month Change | 2.04% |
| 3 Month Change | -2.60% |
| 1 Year Change | 3.45% |
| 3 Year Change | -3.23% |
| 5 Year Change | 66.67% |
| Change since IPO | -72.92% |
Recent News & Updates
Shareholder Returns
| STERLNBANK | NG Banks | NG Market | |
|---|---|---|---|
| 7D | -3.2% | 0.4% | 1.5% |
| 1Y | 3.4% | 20.5% | 40.2% |
Return vs Industry: STERLNBANK underperformed the NG Banks industry which returned 21.5% over the past year.
Return vs Market: STERLNBANK underperformed the NG Market which returned 40.9% over the past year.
Price Volatility
| STERLNBANK volatility | |
|---|---|
| STERLNBANK Beta | 1.29 |
| Industry Beta | 0.87 |
| Market Beta | 1 |
Stable Share Price: STERLNBANK is not significantly more volatile than the rest of NG stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: STERLNBANK's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1960 | 2,367 | Abu Suleiman | https://www.sterling.ng |
Sterling Bank Plc provides various commercial banking services primarily to multinational companies, financial institutions, individuals, small businesses, partnerships, and commercial entities in Nigeria. It operates through six segments: Retail Banking, Commercial Banking, Institutional Banking, Corporate & Investment Banking, Non-interest Banking, and Special Purpose Vehicle. The company offers retail and consumer banking, and trade services, as well as corporate, investment and non-interest banking services; and wholesale banking services comprising the granting of loans and advances, letter of credit transactions, money market operations, electronic and mobile banking products, and other banking activities, as well as issues debt securities to borrow funds.
Sterling Bank Fundamentals Summary
| STERLNBANK fundamental statistics | |
|---|---|
| Market Cap | ₦44.05b |
| Earnings (TTM) | ₦11.52b |
| Revenue (TTM) | ₦85.45b |
3.7x
P/E Ratio0.3x
P/B RatioIs STERLNBANK overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| STERLNBANK income statement (TTM) | |
|---|---|
| Revenue | ₦85.45b |
| Cost of Revenue | ₦8.51b |
| Gross Profit | ₦76.94b |
| Expenses | ₦65.42b |
| Earnings | ₦11.52b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.40 |
| Gross Margin | 90.04% |
| Net Profit Margin | 13.48% |
| Debt/Equity Ratio | 125.3% |
How did STERLNBANK perform over the long term?
See historical performance and comparisonDividends
3.3%
Current Dividend Yield12%
Payout RatioValuation
Is Sterling Bank undervalued compared to its fair value and its price relative to the market?
3.75x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: Insufficient data to calculate STERLNBANK's fair value to establish if it is undervalued.
Significantly Below Fair Value: Insufficient data to calculate STERLNBANK's fair value to establish if it is undervalued.
Price To Earnings Ratio
PE vs Industry: STERLNBANK's PE Ratio (3.7x) is in line with the NG Banks industry average.
PE vs Market: STERLNBANK is good value based on its PE Ratio (3.7x) compared to the NG market (7.4x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate STERLNBANK's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: STERLNBANK is good value based on its PB Ratio (0.3x) compared to the NG Banks industry average (0.5x).
Future Growth
How is Sterling Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
18.1%
Forecasted Banks industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sterling Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Past Performance
How has Sterling Bank performed over the past 5 years?
11.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STERLNBANK has a high level of non-cash earnings.
Growing Profit Margin: STERLNBANK's current net profit margins (13.5%) are higher than last year (12.7%).
Past Earnings Growth Analysis
Earnings Trend: STERLNBANK's earnings have grown by 11.8% per year over the past 5 years.
Accelerating Growth: STERLNBANK's earnings growth over the past year (11.2%) is below its 5-year average (11.8% per year).
Earnings vs Industry: STERLNBANK earnings growth over the past year (11.2%) exceeded the Banks industry 10.5%.
Return on Equity
High ROE: STERLNBANK's Return on Equity (8.9%) is considered low.
Financial Health
How is Sterling Bank's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Financial Institutions Analysis
Asset Level: STERLNBANK's Assets to Equity ratio (11.3x) is moderate.
Allowance for Bad Loans: STERLNBANK has a sufficient allowance for bad loans (145%).
Low Risk Liabilities: 83% of STERLNBANK's liabilities are made up of primarily low risk sources of funding.
Loan Level: STERLNBANK has an appropriate level of Loans to Assets ratio (44%).
Low Risk Deposits: STERLNBANK's Loans to Deposits ratio (58%) is appropriate.
Level of Bad Loans: STERLNBANK has an appropriate level of bad loans (1.9%).
Dividend
What is Sterling Bank current dividend yield, its reliability and sustainability?
3.33%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: STERLNBANK's dividend (3.33%) isn’t notable compared to the bottom 25% of dividend payers in the NG market (3.33%).
High Dividend: STERLNBANK's dividend (3.33%) is low compared to the top 25% of dividend payers in the NG market (7.34%).
Stability and Growth of Payments
Stable Dividend: STERLNBANK has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: STERLNBANK has only been paying a dividend for 9 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (12.5%), STERLNBANK's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.4yrs
Average management tenure
CEO
Abu Suleiman (48 yo)
3.5yrs
Tenure
Mr. Abubakar Suleiman, also known as Abu, has been Managing Director and Chief Executive Officer of Sterling Bank Plc since April 01, 2018. Mr. Suleiman served as Executive Director of Finance & Strategy o...
Leadership Team
Experienced Management: STERLNBANK's management team is considered experienced (3.4 years average tenure).
Board Members
Experienced Board: STERLNBANK's board of directors are considered experienced (5.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Sterling Bank Plc's employee growth, exchange listings and data sources
Key Information
- Name: Sterling Bank Plc
- Ticker: STERLNBANK
- Exchange: NGSE
- Founded: 1960
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: ₦44.049b
- Shares outstanding: 28.79b
- Website: https://www.sterling.ng
Number of Employees
Location
- Sterling Bank Plc
- Sterling Towers
- 20 Marina
- Lagos
- 01700-3270
- Nigeria
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/25 16:50 |
| End of Day Share Price | 2021/10/25 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.