STERLING BANK : QUARTER 1 - FINANCIAL STATEMENT FOR 2022

Sterling Bank Plc

Condensed Unaudited Group Interim Financial Statements

March 2022

Sterling Bank Plc and Subsidiary

Condensed Interim Financial Statements for the Period Ended 31 March 2022

Directors' Report

For the period ended 31 March 2022

The Directors present their first quarter report on the affairs of Sterling Bank Plc ("the Bank"), together with the unaudited Group Financial Statements for the period ended 31 March, 2022

Principal activity and business review

Sterling Bank Plc is engaged in commercial banking services with emphasis on retail, commercial and corporate banking, trade services, investment banking activities and non-interest banking. It also provides wholesale banking services including the granting of loans and advances; letter of credit transactions, money market operations, electronic banking products and other banking activities.

Legal form

Sterling Bank Plc, (formerly known as NAL Bank Plc) was the pioneer merchant bank in Nigeria, established on 25 November, 1960 as a private liability company and was converted to a public limited company in April, 1992.

Following the consolidation reforms introduced and driven by the Central Bank of Nigeria in 2004, the Bank emerged from the consolidation of NAL Bank Plc, Indo-Nigerian Bank Limited, Magnum Trust Bank Plc, NBM Bank Limited and Trust Bank of Africa Limited. NAL Bank Plc as the surviving bank adopted a new name for the enlarged entity, 'Sterling Bank Plc'.

The enlarged Bank commenced post merger business operations on January 3, 2006 and the Bank's shares are currently quoted on the Nigerian Stock Exchange (NSE).

In October, 2011, the Bank had a business combination with Equitorial Trust Bank Limited to re-position itself to better compete in the market space.

In compliance with the CBN guidelines on the review of the Universal Banking model, the Bank divested from its four subsidiaries and one associate company on 30 December, 2011.

Sterling Bank Plc registered Sterling Investment Management Plc (the SPV) with the Corporate Affairs Commission as a public liability company limited by shares with authorised capital of N2,000,000 at N1.00 per share. The main objective of setting up the SPV is to raise or borrow money by the issue of bonds or other debt instruments. The SPV is a subsidiary and is consolidated in the financial statements of the Bank. The Bank and its subsidiary is collectively referred to as "the Group".

The Bank has 160 branches including cash centres as at 31 March 2022.

Operating results

Highlights of the Group and Bank's operating results for the period are as follows:

Group Bank

In millions of Naira	March 2022
Gross earnings	38,050
Profit before taxation	3,741
Taxation	(198)
Profit after taxation	3,543
Transfer to statutory reserve	534
Transfer to general reserve	3,009
3,543
Earnings per share (kobo) - Basic	12k
Earnings per share (kobo) - diluted	12k
NPL Ratio

March 2021	March 2022	March 2021
30,886	37,485	30,307
2,505	3,756	2,489
(110)	(198)	(110)
2,395	3,558	2,379
359	534	357
2,035	3,024	2,022
2,395	3,558	2,379
8k	12k	8k
8k	12k	8k
March 2022	December 2021	March 2022	December 2021
0.80%	0.71%	0.80%	0.71%

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Sterling Bank Plc and Subsidiary

Condensed Interim Financial Statements for the Period Ended 31 March 2022

Directors who served during the period

The following Directors served during the period under review:

Name

Designation

Date appointed /resignedInterest represented

• 1 Mr. Asue Ighodalo

  Chairman

  Moehi Nigeria Limited

• 2 Dr. (Mrs.) Omolara Akanji

• 3 Mr. Michael AjukwuIndependent Director Independent Director

  Retired 25/02/2022

• 4 Mr. Olaitan Kajero

  Non-Executive Director

  STB Building Society Limited Eltees Properties

  Rebounds Integrated Services

• 5 Mrs. Tairat Tijani

  Non-Executive Director

  Ess-ay Investment Limited

• 6 Mr. Michael Jituboh

  Non-Executive Director

  Dr. Mike Adenuga

• 7 Mr. Ankala Prasad (Indian)

  Non-Executive Director

• 8 Mrs. Folasade Kilaso

Non-Executive DirectorState Bank of India Alfanoma Nigeria Limited Plural Limited

Reduvita Limited

Quakers Integrated Services Limited Concept Features Limited

• 9 Mr. Paritosh Tripathi (Indian)

10 Mr. Abubakar SuleimanNon-Executive Director Managing Director/CEO

State Bank of India

11

Mr. Yemi Odubiyi

Executive Director

12

13

Mr. Emefienim Emmanuel Mr. Tunde Adeola

14

Mr. Raheem OwodeyiExecutive Director Executive Director Executive Director

Resigned 28/02/2022

Going Concern

The Directors assess the Group and the Bank's future performance and financial position on an on-going basis and have no reason to believe that the Group will not be a going concern in the year ahead. For this reason, these financial statements are prepared on a going concern basis.

Directors interests in shares

Interest of Directors in the issued share capital of the Bank as recorded in the Register of members and/or as notified by them for the purpose of section 301 of the Companies and Allied Matters Act 2020 were as follows:

Number of shares

1

2

3

4

5

6

7

8

9

10

11

12

13

14

March 2022	March 2022
Names	Direct	Indirect
Mr. Asue Ighodalo	-	-	62,645,242	-	62,645,242
Mr Michael Jituboh	-	-	1,620,376,969	-	1,620,376,969
Dr. (Mrs) Omolara Akanji *	-	-	-	-	-
Mr. Michael Ajukwu	-	-	-	-	-
Mr. Olaitan Kajero	-	-	1,592,555,294	-	1,592,555,294
Mrs. Tairat Tijani	-	-	1,444,057,327	-	1,444,057,327
Mrs. Folasade Kilaso	-	1,440,337,670	-	1,440,337,670
Mr. Abubakar Suleiman	47,325,727	-	47,325,727	-
Mr. Yemi Odubiyi	26,471,708	-	26,471,708	-
Mr. Emefienim Emmanuel **	20,527,369	-	20,527,369	-
Mr. Tunde Adeola	27,244,025	-	27,244,025	-
Mr. Raheem Owodeyi	15,733,951	-	15,733,951	-
Mr. Ankala Prasad	-	-	2,549,505,026	-	2,549,505,026
Mr. Paritosh Tripathi	-	-	-	-	-
* Retired 25/02/2022
* Resigned 28/02/2022

Direct Indirect

December 2021 December 2021

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Sterling Bank Plc and Subsidiary

Condensed Interim Financial Statements for the Period Ended 31 March 2022

Analysis of shareholding

The range analysis of the distribution of the shares of the Bank as at 31 March 2022 is as follows:

Range of shares

Number	%
of holders
32,327	36.70%
25,991	29.51%
8,835	10.03%
7,026	7.98%
5,085	5.77%
3,277	3.72%
2,361	2.68%
1,755	1.99%
1,315	1.49%
Above 10,000,001	110	0.12%
Foreign shareholding	4	0.00%
88,086	100%

Number	%
of units
14,488,737	0.05%
58,625,415	0.20%
59,791,387	0.21%
95,116,794	0.33%
159,630,799	0.55%
229,321,468	0.80%
339,313,649	1.18%
560,085,056	1.95%
1,544,644,986	5.37%
15,280,197,045	53.07%
10,449,202,790	36.29%
28,790,418,126	100.00%
The following shareholders have shareholdings of 5% and above as at 31 March 2022:
December 2021	December 2021
Holding (units)	% holding
7,197,604,531	25.00
2,549,505,026	8.86
1,620,376,969	5.63
1,444,046,801	5.02

1 - 1,000

1001 - 5,000

5,001 - 10,000

10,001 - 20,000

20,001 - 50,000

50,001 - 100,000

100,001 - 200,000

200,001 - 500,000

500,001 - 10,000,000

March 2022 Holding (units)March 2022 % holding

Silverlake Investment Limited State Bank of India

7,197,604,531 25.00

2,549,505,026 8.86

Dr. Mike Adenuga

1,620,376,969 5.63

Ess-ay Investments Limited

1,444,057,327 5.02

Acquisition of own shares

The Bank did not acquire any of its shares during the period ended 31 March 2022 (31 December, 2021: Nil).

Property, plant and equipment

Information relating to changes in property, plant and equipment is given in Note 25 to the consolidated and separate financial statements.

Employment and employees

• i Employment of disabled persons

  The Bank has a non-discriminatory policy on recruitment. Applications would always be welcomed from suitably qualified disabled persons and are reviewed strictly on qualification. The Bank's policy is that the highest qualified and most experienced persons are recruited for appropriate job levels irrespective of an applicant's state of origin, ethnicity, religion or physical condition.

• ii Health, safety and welfare of employees

  Health and safety regulations are in force within the Bank's premises and employees are aware of existing regulations. The Bank provides subsidies to all levels of employees for medical expenses, transportation, housing, lunch etc.

• iii Employee training and development

  The Bank is committed to keeping employees fully informed as much as possible regarding the Bank's performance and progress and seeking their opinion where practicable on matters, which particularly affect them as employees.

  Training is carried out at various levels through both in-house and external courses. Incentive schemes designed to encourage the involvement of employees in the Bank's performance are implemented whenever appropriate.

• iv Events after reporting date

  There were no events after the reporting date which could have had a material effect on the state of affairs of the Bank as at 31 March 2022 or the profit for the year ended on that date which have not been adequately provided for or disclosed.

  BY ORDER OF THE BOARD:

  Temitayo Adegoke

  Company Secretary

  FRC/2018/NBA/00000018142

  20 Marina, Lagos, Nigeria.

  April 27, 2022

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Sterling Bank Plc and Subsidiary

Condensed Interim Financial Statements for the Period Ended 31 March 2022

Corporate Governance

The Bank complies with the relevant provisions of the Nigerian Securities & Exchange Commission (SEC), the Financial Reporting Council of Nigeria (FRCN) and the Central Bank of Nigeria (CBN) Codes of Corporate Governance.

Board Composition and Committee

Board of Directors

The Board of Directors (the 'Board') is made up of the Non-Executive Chairman, Non-Executive Directors and Executive Directors who oversee the corporate governance of the Bank. The members are as follows:

1	Mr. Asue Ighodalo	Chairman	Chairman
2	Dr. (Mrs.) Omolara Akanji	Retired effective 25/02/2022	Member	Independent Director
3	Mr. Michael Ajukwu	Member	Independent Director
4	Mr. Olaitan Kajero	Member	Non-Executive Director
5	Mrs. Tairat Tijani	Member	Non-Executive Director
6	Mr. Michael Jituboh	Member	Non-Executive Director
7	Mr. Ankala Prasad (Indian)	Member	Non-Executive Director
8	Mr. Paritosh Tripathi (Indian)	Member	Non-Executive Director
9	Mrs. Folasade Kilaso	Member	Non-Executive Director
10	Mr. Abubakar Suleiman	Member	Managing Director/CEO
11	Mr. Yemi Odubiyi	Member	Executive Director
12	Mr. Emefienim Emmanuel	Resigned effective 28/02/2022	Member	Executive Director
13	Mr. Tunde Adeola	Member	Executive Director
14	Mr. Raheem Owodeyi	Member	Executive Director

Board Committees

The Board carries out its oversight functions through its various committees each of which has a clearly defined terms of reference and a charter which has been approved by the Central Bank of Nigeria. The Board has five (5) standing committees, namely: Board Credit Committee, Board Finance & General Purpose Committee, Board Audit Committee, Board Risk Management Committee and Board Governance & Remuneration Committee. In line with best practice, the Chairman of the Board is not a member of any of the Committees. The composition and responsibilities of the committees are set out below:

Board Credit Committee

The Committee acts on behalf of the Board on credit matters and reports to the Board for approval/ratification.

Terms of reference

• ▪ ▪ ▪

Consider credit proposals for approval on the recommendation of the Management Credit Committee (MCC). Recommend to the Board assignment of credit approval authority limits on the recommendation of the MCC.

Review the Credit Policy Guidelines of the Bank as and when required by the dictates of the market and/or the corporate

▪

Approve credit facility requests above the limits set for Management, within limits defined by the Bank's credit policy and within the statutory requirements set by the regulatory/supervisory authorities.

▪

Review periodic credit portfolio reports and assess portfolio performance.

▪

Ensure compliance with the Bank's Credit Policies and statutory requirements prescribed by the regulatory/supervisory authorities.

▪

Recommend credit facility requests above the Committee's limit to the Board.

▪

Review and recommend to the Board for approval/ratification Management proposals on full and final settlements on non performing loans.

▪

Review and approve the restructure of credit facilities in line with the Credit Policy Guidelines.

▪

Review and approve credit proposals in line with the Bank's Risk Policy Guidelines.

▪

Review and recommend to the Board for approval proposals on write-offs.

▪

Periodic review of the recovery process to ensure compliance with the Bank's recovery policies, applicable laws and

▪

To perform any other duties assigned by the Board from time to time.

The members are as follows:

1	Dr. (Mrs) Omolara Akanji	Retired effective 25/02/2022	Chairman
2	Mr. Olaitan Kajero	Member
3	Mr. Michael Ajukwu	Member
4	Mr. Abubakar Suleiman	Member
5	Mrs. Tairat Tijani	Member
6	Mr. Yemi Odubiyi	Member
7	Mr. Emefienim Emmanuel	Resigned effective 28/02/2022	Member
8	Mr. Tunde Adeola	Member

4