Sterling Financial grows H1 profit by 20%, balance sheet nears N5trn

Sterling Financial Holdings Company Plc has reported a 20.4 per cent increase in profit after tax for the first half of 2026, driven by strong growth in lending, customer deposits and interest income as the financial services group continued to strengthen its balance sheet and expand its operations.

The unaudited results released by the company on Wednesday showed that profit after tax rose to N50.3 billion in the six months ended June 30, 2026, from the corresponding period of 2025, while profit before tax climbed 21.9 per cent to N55.5 billion. The group’s gross earnings grew by 31.5 per cent to N279.6 billion, supported by a 33.7 per cent increase in interest income to N223.6 billion as its loan portfolio expanded and asset yields improved.

Net interest income also recorded a strong performance, rising 41 per cent to N137.4 billion, while non-interest income increased by 23.3 per cent to N56 billion, boosted by higher fee income and other operating revenue streams.

Sterling Financial also recorded significant growth in its balance sheet, with total assets rising by 19.3 per cent to N4.67 trillion, putting the group on the verge of the N5 trillion mark.

Customer deposits increased by 21.1 per cent to N3.62 trillion, reflecting stronger customer confidence and providing additional funding to support lending to businesses and households.

The company’s shareholders’ funds rose by 27.8 per cent to N547.7 billion following the successful public offer of 13.8 billion ordinary shares, which raised N96.6 billion. The stronger capital position is expected to provide additional capacity for future business expansion.

Sterling Financial said investor confidence has also strengthened, with its share price appreciating by more than 15 per cent since the beginning of the year. Basic earnings per share stood at 77 kobo following the enlarged share capital resulting from the public offer.

The group attributed its performance to the ongoing modernisation of its technology infrastructure and operating model across its subsidiaries, including Sterling Bank, The Alternative Bank (AltBank) and SterlingFI Wealth Management.

According to the company, investments in technology are already delivering improved service delivery, greater operational efficiency and stronger capacity to accommodate increasing customer transactions while maintaining prudent risk management.

It added that the combination of a stronger capital base, expanding deposit franchise and a more diversified earnings mix positions the group for sustained growth in the second half of the year.

“The combination of a reinforced capital base, expanding deposit franchise, and broader earnings mix leaves Sterling Financial positioned to compound growth in the second half of the year, channelling capital where it earns most and continuing to lend into the real economy,” the company stated.

Sterling Financial Holdings Company Plc is one of Nigeria’s leading financial services groups with interests spanning commercial banking through Sterling Bank, non-interest banking through The Alternative Bank and wealth management via SterlingFI Wealth Management. The company said it remains focused on financial innovation, expanding inclusion and delivering sustainable value to customers, shareholders and the wider economy.