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Sopuruchi Onwuka
Sterling Financial Holdings Company Plc (Sterling HoldCo) has sustained its profit momentum, posting a 99 per cent year-on-year increase in profit before tax (PBT) for the year ended December 31, 2025, driven by strong revenue growth, improved operational efficiency, and a strengthened capital position.
According to the Group’s interim unaudited full-year results, gross earnings rose by 46 per cent to ₦476.5 billion, reflecting robust growth across both interest and non-interest income lines despite a competitive operating environment.
Interest income increased by 43 per cent to ₦369.6 billion, supported by growth in loans and advances to customers as well as improved yields on investment securities. Non-interest income rose by 57.3 per cent, benefiting from higher trading income and increased fees and commissions.
The strong revenue performance translated into improved efficiency, with the Group’s cost-to-income ratio declining to 63 per cent from 72 per cent in 2024. This reflects Sterling HoldCo’s disciplined cost management approach, even as it continued to invest in growth and innovation.
A key contributor to the improved performance was the Group’s sustained investment in digital and operational capabilities across its banking and non-banking subsidiaries. These investments enhanced service delivery, supported higher transaction volumes, and improved cost efficiency while maintaining strong risk management standards.
Sterling HoldCo’s balance sheet also strengthened over the period. Total assets grew by 11 per cent to ₦3.92 trillion, while customer deposits increased by 18 per cent to ₦2.98 trillion, underscoring growing customer confidence in the Group.
Shareholders’ funds rose by 39 per cent to ₦424.0 billion, further reinforcing the Group’s capital base. Building on this improvement, Sterling HoldCo ensured that its banking subsidiaries met the Central Bank of Nigeria’s new recapitalisation requirements well ahead of the March 2026 deadline.
The recapitalisation was achieved through disciplined capital-raising initiatives, including a public offer of over ₦88 billion to strengthen Sterling Bank’s capital position, as well as an earlier capital injection that enabled The Alternative Bank to operate as a national non-interest bank.
With a diversified revenue mix, expanding balance sheet, improved efficiency, and a strengthened capital structure, Sterling HoldCo is positioned to sustain growth and support its strategic objectives across Nigeria’s evolving financial services landscape.
