Sterling HoldCo’s after-tax profit rises 81% on strong revenue expansion

Sterling Financial Holdings Company Plc (Sterling HoldCo), parent company of Sterling Bank and The Alternative Bank, has reported its interim financial results for the year ended December 31, 2025, with 81 percent year-over-year (YoY) growth in its after-tax profit.

The group’s performance is underscored by a strong 22 percent return on equity, signalling the successful optimisation of its diversified portfolio. Through strategic initiatives to improve operational efficiency and expand its balance sheet, Sterling HoldCo has positioned itself for continued growth while maximising shareholder value. As a result, gross earnings soared by 46 percent to N476.5 billion, with after-tax profit standing at N78.6 billion.

Sterling HoldCo’s operational efficiency improved, as evidenced by a decline in the cost-to-income ratio from 72 percent in 2024 to 63 percent in 2025. This indicates the Group’s ability to balance revenue growth with controlled expenses.

Interest income increased by 43 percent to N369.6 billion, fueled by growth in loans and advances and improved investment returns. Non-interest income surged by 57.3 percent, further bolstering the group’s earnings mix, primarily driven by higher trading income and higher fees and commissions.

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Sterling HoldCo’s balance sheet also showed significant growth, with total assets rising 11 percent to N3.92 trillion, driven by increases in customer lending and investments. Customer deposits grew 18 percent to N2.98 trillion, reflecting increased customer engagement and product adoption.

In addition, the Group’s digital and operational investments have driven enhanced service delivery, greater cost efficiency, and stronger risk controls, supporting the growing customer base.

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Shareholders’ funds grew 39 percent to N424.0 billion, bolstering the Group’s capital position and capacity to continue its growth trajectory. This growth was further supported by disciplined capital-raising initiatives, including a ₦88 billion public offer and capital injections across its subsidiaries, which also ensured compliance with the Central Bank of Nigeria’s recapitalization requirements.

With a robust capital structure, growing customer deposits, and a diversified revenue stream, Sterling HoldCo is well-positioned for future growth and sustainability.

On the equities market, Sterling HoldCo’s shares opened the year at ₦7.05 and have gained 5.67 percent year-to-date, ranking 95th on the NGX in terms of performance.

Chinwe Michael is a financial inclusion advocate and economy journalist who uses compelling storytelling to drive awareness. With a background in Banking and Finance and experience across accounting, media, and education, she applies sharp analysis and attention to detail to every piece. She simplifies complex financial and economy concepts into engaging content for Africa and global audience. Chinwe also doubles as a speaker with global recognition for her expertise.

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