#1Investors & Analysts Presentation Q1 2022 Sterling#2Disclaimer This presentation has been prepared by Sterling Bank Plc (hereafter referred to as "Sterling Bank", "the Bank", "We"). It is intended for an audience of professional and institutional investors who are aware of the risks of investing in the shares of publicly traded companies. ■The presentation is for information purposes only and should not be construed as an offer or solicitation to acquire, or dispose of any securities or issues mentioned in this presentation. ■ Certain sections of this presentation reference forward- looking statements which reflect Sterling Bank's current views with respect to, among other things, the Bank's operations and financial performance. These forward- looking statements may be identified by the use of words such as 'outlook', 'believes', 'expects', 'potential', 'continues', 'may', 'will', 'should', 'seeks', 'approximately', ‘predicts”, ‘intends', ‘plans', ‘estimates”, ‘anticipates' or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. In other cases, they may depend on the approval of the Central Bank of Nigeria, Nigerian Stock Exchange, and the Securities and Exchange Commission. ■ Accordingly, there are or may be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Sterling Bank believes these factors include but are not limited to those described in its Q1 interim report for March 31, 2022. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release. Sterling Bank undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. Sterling Towers#3Content 01 Performance Snapshot (Q1 2022) 03 (Q1 2022) Scorecard 02 Operating Performance (Q1 2022) 04 Appendix#4tbh TheBusinessHub Grow with The Business Hub In today's fast changing world, our commitment to your success remains unchanged. So whether you are taking baby steps or bolder steps in business, our range of solutions will help you stay ahead. BUSINESS REGISTRATION | LOANS | MENTORSHIP | SHARED WORKSPACE | ONLINE SHOP & MORE... Call 017004271 or send an email [email protected]#5Strategic Objectives In line with our business model, we continue to leverage on industry knowledge, advanced technology & ethical financing to empower our stakeholders ííí Strengthened Balance Sheet Strategic Partnerships Workforce Empowerment Differentiated Digital Platforms Maintained a resilient balance sheet with adequate liquidity and capital buffers while improving the quality of our funding base. Forging strategic relationships and using finance and technology to build capacity and scale businesses across The HEART sectors (Health, Education, Agriculture, Renewable Energy and Transportation). In line with our commitment to create a great place to work and institute a knowledge-based culture, we have fully adopted flexible working arrangements enabled by our investments in remote working digital platforms. Our digital platforms (i.e. lending, payments, investments and commerce) have allowed all customers self-serve both online and offline.#6Strategic Objectives In line with our business model, we continue to leverage on industry knowledge, advanced technology & ethical financing to empower our stakeholders Business stability market share gains through Digital Capabilities Capital, Liabilities and Liquidity Buffers Stronger governance and underwriting frameworks Stable liability mix and lower cost of funds: CASA Ratio >60% Cost Optimization Solidify the foundation & calibrate growth (immediate) Continued focus on growing our Retail/ MSE business Accelerate strategic partnerships across the HEART sectors Corporate flows and Cross sell through Transaction banking Continued investment in our people and encouraging a great place to work Predictable and Sustainable Earnings Return value to Shareholders Short - Medium Term Objectives#7Financial & Non-Financial Highlights Our performance in the first quarter highlights the progress made in improving the efficiency of our balance sheet Financials (N' millions) Total Assets 1,662,971 2.1% from FY 2021 Loans & Advances Customer Deposits 735,776 3.4% from FY 2021 1,208,449 0.0% from FY 2021 Gross Earnings 38,050 23.2% Q1 2021 Net Interest Income 16,853 17.5% Q1 2021 Channels CASA Deposits 876,493 6.4% from FY 2021 Operating Expense 19,032 21.3% Q1 2021 Profit Before Tax 3,741 49.3% Q1 2021 POS ATM USSD Users Branches Customers Staff ATM 0000 *822# Ratings MOODY'S Fitch Ratings B2 GCR GLOBAL CREDIT RATING DO BBB B- DataPro Cara Caray BBB+ Professional Key Ratios NPL 0.8% LDR 57.3% Liquidity 31.0% Cost of Funds 3.9% Cost of Risk 1.1% Coverage Ratio 432.4% CAR 14.7% 14,086 636 >2.0M 141 >3M 2436#8Performance Snapshot (1/2) The Bank ended the first quarter of 2022 with a profit after tax of N3.5 billion, a 47.9% improvement on the corresponding period in 2021 30,054 16,853 (13,201) Q1 2022 N'million 7,996 24,849 (2,076) 3,741 3,543 (19,032) (198) Interest income Interest expense Net-Interest Non-Interest income income Operating Impairment income charges Operating expenses Profit before taxation Taxes Profit after taxation 25,276 (10,928) Q1 2021 N'million Increase Decrease Total 5,740 20,088 14,348 (1,767) 2,505 2,395 (15,816) (110)#9Performance Snapshot (2/2) Improved traction in customer deposits as well as increase in other liabilities continued to drive growth in total assets during the period Total Assets (N’bn) 1,103 1,183 1,629 1,299 597 712 2.1% 1,663 736 619 125 123 621 69 310 367 51 43 293 11 17 17 269 260 16 18 466 17 421 324 161 225 2018 2019 2020 2021 Q1 2022 ■Cash & short term investments Fixed Assets Government Securities Other Assets Loans & Advances Total Total Liability (N'bn) 1,103 761 1,299 1,130 854 972 1,629 1,663 1224 1226 141 152 98 38- 110 136 105 133 87 41- 62- -43 -42 -42 43 120 83 86 117 109 2018 2019 2020 2021 Q1 2022 ■Borrowings Debt Securities Other Liabilities Equity Deposits Total Sterling Towers#10A new digital banking experience! Open an account to transact, save, invest, borrow and earn. OneBank Download the App Download on the App Store ANDROID APP ON Google play sterling.ng/onebank @onebankng v2.1.0.14 8:31 AM Good Morning Abi Welcome to OneBank Powered by Sterling Log In BANK ATM Branch Locator Register Sterling 201#11Revenue Evolution Gross earnings grew Y.O.Y by 23.2% to N38.1 billion driven by a 17.5% and 40.5% improvement in net interest income and fees & commission respectively. Gross Earnings (N'b) Interest Income ■Non-Interest Income 23.2% Interest Income Q1 2022 0% 22% 23% 39.8 38.0 35.3 32.9 8 31.0 8 5 5 6 32 31 30 28 25 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Cash & Cash Eqv. ■Loans & Advances Investment Securities Net Interest Income 17.5% 16.9 15.0 15.5 14.3 12.4 Q1 2018 18 Q1 2019 19 Q1 2020 20 Q1 2021 Q1 2022 78% 79% Q1 2021 Non-Interest Income 25% 19% 17% 64% 12% 63% ■Fees and commissi on income Net trading income ■ Other operating income Gross earnings rose by 23.2% driven by a growth in interest income and increase in fees & commission. Non-interest revenue up by 42.4% mainly attributable to fees & commission income, and other operating income. Consequently, net operating income grew by 25.2% to N22.8 billion.#12Funding & Liquidity Increased traction in the mobilization and retention of low-cost deposits continues to drive down funding costs. Customer Deposits (N'b) 0.0% FY 2021 Q1 2022 8% 9% 19% CASA:73% 00 17% CASA:68% 51% 17% 51% 1,209 1,208 95 105 892 24% 761 290 227 45 70 155 208 205 284 194 121 619 669 556 417 2019 2020 2021 Current Savings ■Term Pledged Q1 2022 Total Cost of Funds (%) 6.3% 4.7% 3.9% 3.6% 2019 2020 2021 Q1 2022 We continued to improve the quality of our funding base through disciplined execution of our retail banking strategy and improved cross-selling of our digital products. This led to the increase in CASA mix from 68% to 73%. Liquidity ratio at 31% well above the minimum regulatory requirement.#13Equity and Capital Adequacy Overall, we maintained a healthy capital position well above regulatory limits Equity (N'b) Share capital Share premium Retained earnings Others 136 142 7.0% 152 120 98 1563 25 35 38 6 Sterling Towers 43 43 43 43 43 14 14 14 14 14 2018 2019 2020 2021 Q1 2022 Items (N'mn) Mar. 2022 Dec. 2021 Tier 1 capital* 120,802 117,154 Tier 2 capital** 24,273 24,273 Shareholder's funds grew by 7% to N152 billion (FY 2021: N142 billion). Total regulatory capital 145,074 141,427 Overall, the Bank's capital adequacy ratio stood at 14.7% as at March 2022. Risk-weighted assets 984,744 951,825 Tier 1 ratio 12.27% 12.31% Tier 2 ratio 2.46% Capital adequacy ratio 14.7% 2.55% 14.8% Notes: *Tier 1 capital includes ordinary share capital, share premium, retained earnings, and other regulatory adjustments relating to items that are included in equity but are treated differently for capital adequacy purposes. **Tier 2 Capital includes qualifying subordinated debt, and element of the fair value reserve relating to unrealized gains on equity instruments classified as Fair Value Through Other Comprehensive Income. L -#14Loans and Advances by Sector Growth in gross loans and advances was driven by both the Agricultural and manufacturing sectors. Gross Loans & Advances by Sector Mar-2022 Dec-2021 Growth Sectors Agriculture N'm % of total N'm % of total % 92,972 12.4% 76,727 10.6% 21.2% Communication 20,047 2.7% 17,762 2.4% 12.9% Consumer 95,998 12.8% 91,360 12.6% 5.1% Education 1,392 0.2% 1,369 0.2% 1.7% Finance and Insurance 23,088 3.1% 25,132 3.5% -8.1% Government 102,804 13.7% 101,375 14.0% 1.4% Manufacturing 23,055 3.1% 10,438 1.4% 120.9% Mining & Quarrying 0 0.0% 0.0% 0.0% Mortgage 2,686 0.4% 3,114 0.4% -13.7% Oil and Gas 161,938 21.5% 170,576 23.5% -5.1% Others 57,911 7.7% 48,437 6.7% 19.6% Power 33,223 4.4% 36,011 5.0% -7.7% Real Estate & Construction 71,159 9.5% 80,940 11.1% -12.1% Transportation 29,208 3.9% 28,239 3.9% 3.4% Non-interest banking 36,077 4.8% 34,600 4.8% 4.3% TOTAL 751,558 100.0% 726,080 100.0% 3.5%#15Loans and Advances by Currency - Q1 2022 ...while we continue to effectively manage our FCY loan book to circa 20% of the total Bank's loan portfolio. Gross Loans & Advances by Currency FCY LCY Sector N'm % of Total N'm % of Total % of Sector Agriculture Communication Consumer 0.0% 92,972 15.5% 0.0% 0.0% 20,047 3.3% 0.0% 94 0.1% 95,904 16.0% 0.1% Sterling Towers Education 0.0% 1,392 0.2% 0.0% Finance & Insurance 0.0% 23,088 3.9% 0.0% Government 0.0% 102,804 17.1% 0.0% Manufacturing 14,367 9.5% 8,688 1.4% 62.3% Mining & Quarrying 0.0% 0 0.0% 0.0% Mortgage 0.0% 2,686 0.4% 0.0% Oil & Gas 97,744 64.3% 64,194 10.7% 60.4% Others 6,036 4.0% 51,875 8.7% 10.4% Power 318 0.2% 32,905 5.5% 1.0% Real Estate & Construction 15,269 10.0% 55,890 9.3% 21.5% Transportation 6,469 4.3% 22,739 3.8% 22.1% Non-interest banking 11,654 7.7% 24,423 4.1% 32.3% TOTAL 151,951 100.0% 599,607 100.0% 20.2%#16Loans and Advances by Currency - FY 2021 ...while we continue to effectively manage our FCY loan book under a third of the Bank's total loan book Gross Loans & Advances by Currency FCY LCY Sector N'm % of Total N'm % of Total % of Sector Agriculture Communication Consumer 0.0% 76,727 13.3% 0.0% 0.0% 17,762 3.1% 0.0% 111 0.1% 91,249 15.8% 0.1% Sterling Towers Education 0.0% 1,369 0.2% 0.0% Finance & Insurance 0.0% 25,132 4.4% 0.0% Government 0.0% 101,375 17.5% 0.0% Manufacturing 4,377 3.0% 6,061 1.0% 41.9% Mining & Quarrying 0.0% 0 0.0% 0.0% Mortgage 0.0% 3,114 0.5% 0.0% Oil & Gas 104,943 70.7% 65,633 11.4% 61.5% Others 4,965 3.3% 43,472 7.5% 10.2% Power 235 0.2% 35,775 6.2% 0.7% Real Estate & Construction 15,165 10.2% 65,774 11.4% 18.7% Transportation 6,388 4.3% 21,852 3.8% 22.6% Non-interest banking 12,169 8.2% 22,431 3.9% 35.2% TOTAL 148,354 100.0% 577,726 100.0% 20.4%#17Asset Quality - NPL by Sector In terms of asset quality, we maintained the non-performing loans during the period under review at N5.3 billion NPL by Sector (N'm) - Q1 2022 3,409 Consumer N5.3b 587 576 351 302 89 6 5 4 0 NIB Real Estate & Construction Others Mortgage Oil & Gas Agriculture Manufacturing Education Transportation NPL by Sector (N'm) - FY 2021 2,752 1,285 N5.2b 442 336 225 89 6 6 6 5 Consumer Real Estate & Construction NIB Mortgage Others Oil & Gas Agriculture Transportation Manufacturing Education Sterling Towers#18Operating Efficiency There is an increase in operating expenses particularly from general and administrative expenses and other operating expenses. Operating Expense (N'b) 21.3% 19 16 17 16 15 2 2 1 1 1 2 2 2 2 6 5 4 6 5 6 5 5 4 4 3 4 4 4 4 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Personnel Others General & Admin Property & Equipment Depreciation & Amortisation Total Cost-to-Income (%) 82.9% 78.8% 78.2% 78.6% Q1 2018 Q1 2019 Q1 2020 Q1 2021 76.6% The Bank recorded a 21.3% increase in operating expenses driven by an increase in general and administrative expenses, and other operating expenses such as the AMCON surcharge. Notwithstanding the increase in operating expense, the cost-to-income ratio (CIR) moderated to 76.6% as at Q1 2022 aided by an improvement in operating income. Q1 2022#19Profitability Overall, the Bank recorded a profit after tax to N3.5 billion for the first quarter PBT & PAT (N'b) 3.2 3.3 3.2 3.1 Q1 2018 Pre tax ROAE & ROAA (%) 13.1% 12.9% 47.9% 49.3% 2.5 2.4 2.2 2.1 3.7 3.5 Sterling Towers Q1 2019 Q1 2020 Q1 2021 Q1 2022 Profit before Tax Profit after Tax 6.8% 6.9% 1.2% 1.2% 0.6% 10.3% 0.9% 0.6% Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Pre Tax RO AE ROAA Profit before and after tax stood at N3.7 billion and N3.5 billion respectively. While Pre-tax Return on Average Equity (ROAE) and Return on Assets stood at 10.3% and 0.9% respectively for the period.#20One աօmթռ Take a bold step One DEBIT women Sterling 0000 1111 2222 3331 4185 12/12 AISHETU OMOLOLA ULOMMA Verve Make the right moves towards financial and personal success INVESTMENT | LIFESTYLE | FINANCING | INSURANCE Visit sterling.ng/onewoman Call 07008220000 for more info#21Key Performance Ratios Indicator Net Interest Margin Cost to Income Earnings per Share Liquidity Ratio Cost of Risk Cost of Funds Yield on Earning Assets FY 2020 Q1 2021 FY 2021 Q1 2022 7.7% 6.7% 8.0% 7.4% 76.6% 78.7% 75% 76.6% 39k 8k 47k 12k 34.9% 30.2% 37.9% 31.0% 1.0% 0.9% 1.0% 1.1% 4.7% 3.2% 3.6% 3.9% 12.4% 9.9% 11.6% 11.3% Return on Average Assets (Annualized) 1.0% 0.6% 1.0% 0.9% Post-Tax Return on Average Equity (Annualized) 8.8% 6.6% 9.7% 9.8% Sterling Towers Pre-Tax Return on Average Equity (Annualized) 9.7% 6.9% 10.4% 10.3% NPL Ratio 1.9% 1.9% 0.7% 0.8% Coverage Ratio 236.2% 231.2% 474.2% 432.4% Capital Adequacy Ratio 18.0% 16.8% 14.8% 14.7% Loans to Deposit Ratio 62.4% 60.9% 58.5% 57.3%#22Investor Relations: Ifeoluwa Feyisitan M: +234 802 350 5849 E: [email protected] Fatima Salau M: +234 806 570 2379 E: [email protected] E: [email protected]