• Business - Companies
  • Updated: March 15, 2022

Emefienim: Sterling Bank Releases Earnings Forecast

Emefienim: Sterling Bank Releases Earnings Forecast

Just recently, the resignation of Emmanuel Emefienim was made public by the management of Sterling Bank Plc.

The MD/CEO of STERLING BANK, Abubakar Suleiman, who had faced backlash from some of its shareholders for underperformance, made the painful announcement of his resignation.

According to him, "Emmanuel had more than 10 years of a successful career at Sterling.

"A man with deep faith in God, love for family and community, his contribution to what this institution is today is immeasurable.

"As a colleague of many years, I can attest to his business acumen, team spirit, and commitment to the bank."

Emmanuel, who has an outstanding career in the banking sector, started his "banking career" with Oceanic Bank Plc (now Ecobank Nigeria), where he worked from 1992-1997, rising to the position of Head, Credit & Marketing.

He then moved to United Bank for Africa as Manager, Commercial Banking (1997–2000). Emmanuel also worked at Savannah Bank Plc and FSB International (now Fidelity Bank Plc) over a 6-year period before joining Equitorial Trust Bank (ETB) in 2006.

"While in ETB, he excelled and rose to the position of Zonal Business Director.

Following the acquisition of ETB and its consolidation into Sterling Bank in 2011, Emmanuel assumed the position of Regional Business Executive covering the South-South 2 Region, a role in which he excelled, leading to the expansion of his responsibilities to cover the South-South 1 region. "

"Aside from being awarded Best Performing Group Head (Regional Businesses) at various times, Emmanuel ran the most profitable Regional Business bank-wide for 6 consecutive years (2011–2017).

Based on his exceptional performance, he was promoted to the position of General Manager in 2016 and, in 2018, was appointed to the Board of Sterling Bank as Executive Director, Institutional Banking Directorate. 

Even with the resignation of Emmanuel Emefienim, the bank was very opportunistic in meeting its revenue targets and surpassing Q2, 2021 performance.

Suleiman thanked Emmanuel for his outstanding service to Sterling Bank and wished him all the best in his new role as MD/CEO of Premium Trust Bank.

Key Insight of Sterling Bank Earnings Forecast, Q2, 2022

  • The deposit money bank predicted that gross earnings should hit NGN46.71 billion while interest income should hit NGN35.73 billion.
  • The company also predicted that net revenue from funds which is the product of the deduction of interest expense from interest income should be moderated at NGN21.56 billion.
  • The bank's credit impairment charges should not exceed NGN2.7 billion as measures to increase its creditworthiness are amplified.
  • Net operating income should be NGN29.841 billion while operating expenses should be NGN24.508 billion.
  • The company forecast that profit before taxation (PBT) should hit NGN5.332 billion, with taxation forecasted to be around NGN426.6 million.
  • After the above consideration, the company forecasts that profit after taxation (PAT) should hit NGN4.906 billion at the end of Q2,2022, while the net decrease in net cash and cash equivalents should be around NGN5.43 billion.
  • Finally, the bank believes that its cash and bank balances at the end of the period should be around NGN185.1 billion.


  • We understand that the company's board will have to deliver on all fronts to shareholders who have been disappointed with the results in the market value of the bank.
  • We expect the top management to translate these new targets into results at the end of Q2, 2022.
  • We expect the bank to have gotten the right replacement for Emmanuel Emefienim or be in the process of getting the right replacement for the outstanding executive.
  • We expect the bank to increase its non-interest income portfolio and reduce its operating expenses, especially for those whose benefits are not commensurate with its income.
  • We expect the bank to improve on its credit impairment charges.
  • The likely drawdown from this forecast is that stock market analysts, investors, and financial analysts will be looking forward to the release of its audited or unaudited FY Q2, 2022 when the time is right. 
  • The likely effect is that if the actual is less than the earnings forecast, the share price will likely fall. If the actual earnings are greater than or equal to the forecast, the share price will either remian the smae or get higher or bullish, and that will help Abubakar Suleiman retain his position as the CEO of the bank.

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