Sterling HoldCo Nearly Doubles Profit as Earnings Surge on Strong Income Growth and Cost Discipline
By The People’s Voice Nigeria News
Sterling Financial Holdings Company Plc (Sterling HoldCo) has reported a strong financial performance for the year ended December 31, 2025, recording a 99 per cent year-on-year increase in profit before tax (PBT), driven by robust income growth, improved operational efficiency, and a strengthened capital position.
According to the Group’s interim, unaudited full-year financial results, gross earnings rose by 46 per cent to ₦476.5 billion, reflecting strong growth across both interest and non-interest income streams.
Interest income increased by 43 per cent to ₦369.6 billion, supported by expansion in loans and advances to customers as well as improved yields on investment securities. Non-interest income grew by 57.3 per cent, buoyed by higher trading income and increased fees and commissions.
The strong revenue performance, combined with disciplined cost management, contributed to improved operational efficiency. Sterling HoldCo’s cost-to-income ratio declined to 63 per cent from 72 per cent in 2024, highlighting the Group’s focus on cost optimisation amid a competitive operating environment.
Analysts attribute the improved performance partly to Sterling HoldCo’s sustained investment in digital infrastructure and operational capabilities across its banking and non-banking subsidiaries. These investments have enhanced service delivery, strengthened risk controls, and improved the Group’s ability to support growing customer volumes efficiently.
During the period under review, Sterling HoldCo’s total assets grew by 11 per cent to ₦3.92 trillion, while customer deposits rose by 18 per cent to ₦2.98 trillion. Shareholders’ funds also strengthened significantly, increasing by 39 per cent to ₦424.0 billion.
The Group further reinforced its capital base by ensuring that its banking subsidiaries met the Central Bank of Nigeria’s new recapitalisation requirements well ahead of the March 2026 deadline. This was achieved through a series of capital-raising initiatives, including a public offer of over ₦88 billion to strengthen Sterling Bank’s capital position, as well as a prior capital injection that secured The Alternative Bank’s status as a national non-interest bank.
With a diversified revenue base, strengthened capital structure, and continued focus on digital and operational efficiency, Sterling HoldCo is positioning itself for sustainable growth and long-term value creation across its businesses.
