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STER

Sterling BankNGSE:STERLNBANK Stock Report

Market Cap

₦44.0b

7D

-3.2%

1Y

3.4%

Updated

25 Oct, 2021

Data

Company Financials
STERLNBANK fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends1/6

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

Zenith Bank

NGSE:ZENITHBANK

₦784.9b

Guaranty Trust Holding

NGSE:GTCO

₦624.0b

FBN Holdings

NGSE:FBNH

₦439.7b

Access Bank

NGSE:ACCESS

₦331.0b

Price History & Performance

Summary of all time highs, changes and price drops for Sterling Bank
Historical stock prices
Current Share Price₦1.50
52 Week High₦1.40
52 Week Low₦2.65
Beta1.29
1 Month Change2.04%
3 Month Change-2.60%
1 Year Change3.45%
3 Year Change-3.23%
5 Year Change66.67%
Change since IPO-72.92%

Recent News & Updates

Shareholder Returns

STERLNBANKNG BanksNG Market
7D-3.2%0.4%1.5%
1Y3.4%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

Is STERLNBANK's price volatile compared to industry and market?
STERLNBANK volatility
STERLNBANK Beta1.29
Industry Beta0.87
Market Beta1

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

FoundedEmployeesCEOWebsite
19602,367Abu Suleimanhttps://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

How do Sterling Bank's earnings and revenue compare to its market cap?
STERLNBANK fundamental statistics
Market Cap₦44.05b
Earnings (TTM)₦11.52b
Revenue (TTM)₦85.45b

3.7x

P/E Ratio

0.3x

P/B Ratio

Is STERLNBANK overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
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 Margin90.04%
Net Profit Margin13.48%
Debt/Equity Ratio125.3%

How did STERLNBANK perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

12%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 16:50
End of Day Share Price2021/10/25 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.