Sterling Financial Holdings began 2025 with a resounding statement—more than doubling its half-year profit after tax.
Driven by robust revenue growth, tighter cost controls, and a strengthened capital base, the group posted a 157% year-on-year surge in profit, reaching ₦41.78 billion.
The Group posted PAT of ₦41.78 billion, rising sharply from ₦16.26 billion in the same period last year.
Consequently, earnings per share climbed to 89 kobo from 56 kobo, further increasing returns for shareholders.
Revenue Diversification Pays Off
Meanwhile, the Group accelerated its revenue growth, with gross earnings jumping by 39.7% to ₦212.61 billion.
This momentum came from a 38.3% boost in interest income and a 45% increase in non-interest income, as Sterling HoldCo intensified efforts to diversify its revenue base.
Operational Efficiency Gains
In addition, the Group streamlined operations, which reduced the cost-to-income ratio to 64.5%, down from 75.7%.
As a result, Sterling strengthened its operational efficiency.
By the end of June, the Group expanded its total assets to ₦4.08 trillion, up 15.3% from ₦3.54 trillion in December 2024.
Simultaneously, shareholders’ funds grew by 22.9%, supported by recent recapitalisation and strong retained earnings.
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Furthermore, Sterling improved its asset quality, as the non-performing loan ratio dropped to 5.1% from 5.4% at the close of 2024.
Capital Programme Accelerates
Earlier this year, the Group raised approximately ₦100 billion through a successful private placement and rights issue.
It then deployed these proceeds to fully recapitalise Alternative Bank and reinforce the capital base of its flagship subsidiary, Sterling Bank.
Now, the Group prepares to launch the public phase of its capital programme.
With ₦53 billion left to raise for Sterling Bank’s recapitalisation, the upcoming offer marks the first phase of a $400 million capital raising effort, which shareholders approved at the June 30 AGM.
Reflecting on the Group’s trajectory, Group CEO Yemi Odubiyi emphasised the strategic intent behind the results:
“Our outstanding half-year results stem from clear focus and relentless execution.
We continue to deliver strong growth across our core income lines while building a resilient, agile model that thrives in today’s dynamic environment.”
Looking ahead, he reaffirmed Sterling’s commitment to responsible growth, prudent risk management, and sustainable impact.
“With the next stage of our capital programme approaching,” Odubiyi added, “we see enormous potential to deepen our role in Nigeria’s growth sectors and drive lasting value for customers, communities, and the wider economy.”
