Sterling Bank reports restricted deposits with CBN surge 90% in one year

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Sterling Bank of Nigeria, a tier-2 lender had its restricted deposits held with the Central Bank of Nigeria (CBN) rise by 90 percent in the one-year period between 2019 and 2020.

The restricted deposits with the CBN at the end of 2020 were equivalent to N232.7 billion, and represent mandatory reserve deposits not available for use in the bank’s day-to-day operations.

The CRR deposits with the CBN increased despite Sterling Bank maintaining a Loan to Deposit Ratio (LDR) of 64.9 percent for the period.

The CBN has asked Nigerian Banks to maintain a minimum LDR of 65 percent or face penalties in the form of CRR debits.

Sterling Bank reported Full Year (FY) 2020 profits that increased by 10.2 percent to N11.69 billion, compared to 2019 levels, despite lower interest income and net fees and commission income for the 2020 period.

The shortfall was made up by net trading income and lower admin expenses and depreciation.

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