Sterling HoldCo posts 81% jump in profit after tax on strong revenue growth
Sterling Financial Holdings Company Plc (Sterling HoldCo), the parent company of Sterling Bank and The Alternative Bank, has reported a remarkable 81% year-on-year surge in after-tax profit for the financial year ended December 31, 2025. The company attributed this performance to significant revenue growth and improved operational efficiency across its diversified financial services businesses.
The Group posted N78.6 billion in after-tax profit for 2025, up sharply from the previous year, underpinned by a robust 46% rise in gross earnings to N476.5 billion. This considerable top-line growth reflects Sterling HoldCo’s success in expanding core revenue streams, including both interest and non-interest income.
Revenue Drivers: Interest and Non-Interest Income Surge
A closer look at the financials reveals that interest income climbed by 43% to N369.6 billion, driven largely by growth in loans and advances to customers and better yields on investment securities. At the same time, non-interest income jumped by over 57%, supported by higher trading gains and increased fees and commissions from services across the Group’s banking and non-banking units.
The balanced mix of income sources highlights Sterling HoldCo’s strategic focus on diversifying revenue beyond traditional lending, enabling it to capture growth opportunities in trading, advisory, and fee-based services
Operational Efficiency Improves
Sterling HoldCo also recorded progress on the cost front, with the cost-to-income ratio improving from 72% in 2024 to 63% in 2025. This reduction signals greater operational discipline and better expense management, contributing to stronger profitability even as revenue expanded.
Analysts say this reflects intensified efforts to optimize the Group’s operations, integrate technology, and streamline processes steps that have bolstered efficiency while supporting an expanding client base.
Stronger Balance Sheet and Deposits Growth
On the balance sheet, Sterling HoldCo posted 11% growth in total assets to N3.92 trillion, reflecting increased customer lending and investment holdings. Customer deposits also grew 18% to N2.98 trillion, suggesting strong trust in the Group’s product offerings and customer engagement efforts.
In addition, shareholders’ funds rose 39% to N424.0 billion, helping to strengthen the Group’s capital position and support future growth initiatives. The capital base was further fortified through disciplined capital-raising efforts, including an ₦88 billion public offer and targeted capital injections across subsidiaries, ensuring compliance with the Central Bank of Nigeria’s recapitalisation requirements ahead of deadlines.
Market Performance and Outlook
Sterling HoldCo’s strong earnings momentum has begun to reflect in its market performance. The company’s share price opened the year at ₦7.05 on the Nigerian Exchange (NGX) and has gained over 5% year-to-date, ranking it among the notable performers on the exchange.
Looking ahead, the Group’s diversified revenue base, enhanced digital capabilities, and solid capital footing position it well to navigate a competitive and dynamic financial landscape. Growth initiatives aimed at deeper market penetration, product innovation, and customer experience enhancement are expected to sustain this momentum.
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