Sterling Bank Reportedly Increases Staff Salaries by 7% Amid High Cost of Living
- Sterling Bank has reportedly increased its staff salaries by seven per cent to enable them to cope with high living standards
- Details of the increase showed that executive trainees who previously earned N327k will now earn N351,000, and senior executives will take home N527k
- The bank’s personnel cost also increased to N22.6 billion in the first nine months of 2024
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Sterling Bank, with a market cap of N175.76 billion, has reportedly increased the salaries of its 3,000 staff members amid the rising cost of living caused by inflation.
According to reports, the 7% increase was communicated to the staff through a memo in early January 2025.
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New take-home pay of Sterling Bank employees
Sterling's move is a new trend among Nigerian banks, which are reviewing staff salaries amid escalating high living standards and pressure on consumer spending.
TechCabal reports that the bank embarked on a cost-of-living adjustment (COLA) stipend of N75,000 to employees from executive trainee to assistant banking officer levels.
The bank reportedly operates a salary banding scheme with increases ranging from 7% to 10%. Recent adjustments have promoted employees to the top, with most earning N327,000 monthly.
Executive trainees who previously earned N327,000 will now earn N351,000, and senior executives on a monthly salary of N500,000 will see their wages increase to N527,000.
Union Bank and GTBank increase salaries
The report said that Sterling Bank uses a tiered salary model within each grade level, allowing increases without formal promotions.
Legit.ng earlier reported that Union Bank increased staff salaries by 40% in late 2024, and Guaranty Trust Bank followed with the same 40% raise.
The recent increases are connected to talent retention, as data shows that competitive salaries are essential in reducing high employee turnover in the Nigerian banking system.
Sterling Bank’s pre-tax profit for the first nine months of 2024 amounted to N27.4 billion, representing a 67.07% increase.
The tier-2 bank projects N121.8 billion in gross earnings in the first three months of 2025.
Sterling’s personnel costs hit N22.6 billion as of September 2024, 21.67% of its total expenses of N104.3 billion.
CBN fines 9 banks N150m each
Legit.ng also previously reported that the Central Bank of Nigeria (CBN) sanctioned commercial banks for failing to dispense cash via their ATMs during Christmas, worsening cash scarcity.
Following checks on their branches, the apex bank sanctioned each bank N150 million for non-compliance with its cash distribution guidelines.
The sanction follows several warnings from the apex bank to the banks to guarantee cash availability, especially in the Yuletide.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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