Sterling Financial Holdings Company Plc grew its half-year profit after tax by 20.4 percent to N50.3 billion in the first six months of 2026, driven by stronger lending, higher interest income, and rapid deposit growth, even as impairment charges surged more than fourfold amid an expanding loan book.
The financial holding company reported profit after tax of N50.30 billion for the six months ended June 30, compared with N41.78 billion in the corresponding period of 2025. Profit before tax rose by 21.9 percent to N55.53 billion from N45.55 billion, while gross earnings surged 31.5 percent to N279.6 billion.
The results reinforce Sterling HoldCo’s ability to sustain earnings growth in Nigeria’s high-interest-rate environment, although the pace of profit expansion lagged revenue growth as the bank absorbed significantly higher provisioning costs associated with rapid credit expansion.
Interest income, the group’s largest revenue source, increased by 33.8 percent to N223.58 billion from N167.16 billion, reflecting growth in loans and investment securities as elevated interest rates continued to support asset yields.
However, interest expenses also increased by 23.6 percent to N86.18 billion, raising funding costs as banks competed aggressively for deposits. Despite this, net interest income expanded by 41 percent to N137.39 billion, underscoring the widening spread between asset yields and funding costs.
Net fee and commission income rose 21.8 percent to N26.87 billion, supported by transaction banking and digital banking activities, while other operating income more than doubled to N22.19 billion from N10.37 billion. Trading income, however, declined sharply by 46.5 percent to N6.96 billion, suggesting a moderation in gains from financial market activities compared with the previous year.
The strongest pressure on profitability came from credit impairment. Credit loss expenses surged to N23.85 billion, more than four times the N5.21 billion recorded a year earlier. The increase reflects more conservative provisioning and the higher cost of supporting an expanding loan portfolio rather than deterioration in headline asset quality.
Notably, the group’s non-performing loan ratio remained unchanged at 4.7 percent, indicating that asset quality remained broadly stable despite aggressive lending.
Sterling HoldCo also invested heavily in operations to support growth. Personnel expenses rose 40.3 percent to N33.19 billion, while general administrative costs increased to N33.55 billion. Depreciation and amortisation climbed 41.2 percent to N5.44 billion, reflecting continued investment in technology and physical infrastructure. Overall operating expenses increased by nearly 24 percent to N114.03 billion, although revenue growth remained stronger than cost growth.
The balance sheet showed one of the strongest growth performances among mid-tier lenders. Customer deposits expanded 21.1 percent to N3.62 trillion from N2.98 trillion at the end of December 2025, providing the liquidity required to fund new lending.
Loans and advances to customers increased 13.7 percent to N1.61 trillion, while total assets grew 19.3 percent to N4.67 trillion, reflecting expansion across cash balances, interbank placements and investment securities. Total equity rose by almost 28 percent to N547.67 billion, strengthening the group’s capital base.
The group generated N415.79 billion in net cash from operating activities, supported by strong customer deposit mobilisation and higher interest receipts despite increased lending activity. Operating cash generation comfortably exceeded the previous year’s N395.84 billion, highlighting the strength of Sterling’s core banking franchise.
The first-half performance also reflects the continued transformation of Sterling into a diversified financial holding company.
Besides Sterling Bank, the group now includes Alternative Bank Limited, Nigeria’s non-interest banking subsidiary, and SterlingFi Wealth Management, broadening earnings beyond conventional commercial banking. The structure is designed to deepen fee income and diversify revenue streams over time.
A notable capital development during the period was the successful completion of the group’s rights issue.
Share capital increased to N34.25 billion from N27.35 billion, while share premium rose to N227.24 billion from N139.74 billion, boosting shareholders’ funds and positioning the group to support future balance-sheet expansion amid Nigeria’s banking recapitalisation programme.
The holding company began the year with a share price of N7.05 and has since gained 14.2 percent on that price valuation, ranking it 76th on the NGX in terms of year-to-date performance.
As of the close of trading day Tuesday, July 28, 2026, at N8.05.