…as strong income growth, leaner operations, early recapitalisation lift confidence in long-term outlook
By Gloria Ikibah
Sterling Financial Holdings Company Plc has delivered a standout financial performance, recording a 99 per cent jump in profit before tax as rising earnings and tighter cost controls combined to strengthen the Group’s balance sheet. 
In its interim, unaudited full-year results for the year ended 31 December 2025, the Group reported profit momentum driven by a sharp expansion in both interest and non-interest income, with gross earnings climbing 46 per cent to N476.5 billion.
“The Group recorded a 99 per cent year-on-year increase in profit before tax, reflecting strong revenue growth across our core income lines and the benefits of disciplined cost management,” Sterling HoldCo said.
Interest income rose by 43 per cent to N369.6 billion, supported by growth in loans and advances to customers as well as improved yields on investment securities. Non-interest income increased even faster, jumping 57.3 per cent on the back of higher trading income, fees and commissions.
“Growth in both interest and non-interest income underscores the resilience of our diversified business model and our ability to perform in a competitive operating environment,” the Group noted.
Operational efficiency also improved markedly during the period. Sterling HoldCo reduced its cost-to-income ratio to 63 per cent, down from 72 per cent in 2024, reflecting a deliberate focus on managing operating expenses while scaling revenues.
The Group attributed much of the performance to sustained investment in digital and operational capabilities across its banking and non-banking subsidiaries.
“This improvement in efficiency highlights our commitment to running a leaner, more effective organisation without compromising service delivery,.
“Our continued investment in digital and operational capabilities has enhanced service delivery, improved cost efficiency and strengthened our ability to support growing customer volumes while maintaining sound risk controls,” Sterling HoldCo further stated.
The balance sheet also expanded over the year, with total assets increasing by 11 per cent to N3.92 trillion. Customer deposits rose by 18 per cent to N2.98 trillion, while shareholders’ funds climbed 39 per cent to ₦424.0 billion, reinforcing the Group’s capital base.
On capital adequacy, the Group said it had moved decisively to get ahead of regulatory requirements.
“Building on the growth in shareholders’ funds, we have strengthened our capital structure by ensuring our banking subsidiaries met the Central Bank of Nigeria’s new recapitalisation requirements well ahead of the March 2026 deadline,” it said.
This was achieved through a series of capital-raising initiatives, including a public offer of more than N88 billion to strengthen Sterling Bank, alongside an earlier capital injection that secured The Alternative Bank’s status as a national non-interest bank.
“With a diversified revenue base, increased capital strength and a clear focus on enhancing digital and operational capabilities, the Group is well positioned for sustainable growth in the years ahead,” Sterling HoldCo added.
