By Chukwuma Umeorah
Sterling Financial Holdings Company Plc has posted a profit-after-tax (PAT) of N41.78 billion for the half-year ended June 30, 2025, representing a 157 per cent increase from N16.26 billion recorded in the same period of 2024.
The group also reported a 163 per cent growth in profit-before-tax (PBT), which rose to N45.51 billion from N17.29 billion, driven by sustained growth in core income lines, enhanced cost efficiency, and improved asset quality.
The unaudited financial statements showed that earnings per share stood at 89 kobo, up from 56 kobo in H1 2024, reflecting consistent value creation for shareholders. Gross earnings grew by 39.7 per cent to N212.61 billion, with interest income increasing to N167.16 billion from N120.9 billion, while non-interest income rose by 45 per cent to N45.45 billion, attributed to the group’s focus on diversifying revenue.
Net fees and commission income rose to N22.1 billion from N15.2 billion, while trading income edged up to N13 billion compared to N12.4 billion in the same period last year. Other operating income jumped significantly to N10.4 billion from N3.7 billion.
Despite an uptick in total operating expenses from N67.1 billion to N92.1 billion, including a rise in personnel costs to N23.6 billion from N13.7 billion, the group’s cost-to-income ratio improved notably to 64.5 per cent from 75.7 per cent, supported by ongoing cost optimisation efforts.
Sterling’s total assets stood at N4.08 trillion at the end of June, representing a 15.3 per cent increase from N3.54 trillion recorded as of December 2024. Deposits from customers rose to N2.78 trillion from N2.52 trillion, while loans and advances increased to N1.18 trillion from N1.10 trillion over the same period.
Shareholders’ funds appreciated by 22.9 per cent, reflecting the impact of a recent capital raise and healthy retained earnings. The group also reported an improvement in asset quality, with the non-performing loan ratio declining to 5.1 percent from 5.4 per cent at the close of 2024.
Sterling HoldCo had earlier raised approximately N100 billion through a private placement and rights issue, enabling the full recapitalisation of The Alternative Bank and strengthening the capital base of Sterling Bank, its core commercial banking subsidiary.
Following this, the group announced it will proceed with the public phase of its capital raising programme in the coming weeks to close a remaining recapitalisation gap of N53 billion. This move marks the first phase of the $400 million capital raise approved by shareholders at the company’s Annual General Meeting held on June 30, 2025.
Commenting on the group’s performance and strategic direction, Group Chief Executive Officer, Yemi Odubiyi, said, “Our outstanding half-year results are the product of clear strategic focus and a relentless drive to create lasting value for our stakeholders. Our performance reflects not just robust growth in core income lines, but also our success in building a resilient and agile business model, capable of delivering superior returns even in a dynamic macroeconomic environment.
“As we continue to diversify our income streams and invest in operational efficiency, we remain steadfast in our commitment to responsible growth, prudent risk management, and sustainable impact.
“To the next phase of our capital programme, we see tremendous opportunity to deepen our footprint in Nigeria’s growth sectors and to catalyse meaningful progress for our customers, communities, and the broader economy,” he added.
