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Sterling Financial Holdings Company Plc, on Sunday, confirmed that its banking subsidiaries, The Alternative Bank (AltBank) and Sterling Bank are now fully recapitalised, meeting the Central Bank of Nigeria’s (CBN) revised minimum capital requirements, following final regulatory approvals in January 2026.
The capital-raising programme, largely completed between December 2024 and October 2025, positions the Group well ahead of the 2026 industry deadline. In December 2024, Sterling HoldCo completed a N75 billion private placement, raising N73.86 billion, N68.8 billion for Sterling Bank and N5 billion for AltBank. This was followed by a N28.79 billion rights issue, oversubscribed by N10.29 billion, which, after regulatory approvals, allowed AltBank to meet its non-interest bank capital requirement.
Further strengthening the Group, an N88 billion public offer in October 2025, also oversubscribed, was fully recognised by the CBN, while the Securities and Exchange Commission (SEC) approved the allotment of 13.81 billion shares. In total, N153 billion was injected into Sterling Bank and AltBank, bringing both institutions into full compliance.
Speaking on the milestone, Yemi Odubiyi, Group Chief Executive Officer, said: “This exercise goes beyond regulatory compliance. It positions us to expand credit responsibly, accelerate innovation, and provide sustained support to businesses and households, while maintaining the discipline required in a challenging operating environment.”
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He added that fully capitalising both banks strengthens the Group’s dual-bank model, allowing efficient deployment of capital across conventional and non-interest segments. “Our structure enables us to respond with agility to evolving customer needs. Strong investor participation across our capital programmes reflects confidence in our governance and long-term strategy,” Odubiyi said.
The recapitalisation also lays the foundation for Sterling HoldCo’s next growth phase. “We are entering this phase from a position of significant financial strength, with capacity to scale non-banking businesses, deepen digital capabilities, and pursue disciplined expansion opportunities while delivering sustainable shareholder value,” Odubiyi noted. Sterling HoldCo plans to inject an additional N10 billion into SterlingFI Wealth Management Limited, its asset management arm, to meet the revised SEC minimum capital requirement, supporting full operations and revenue diversification.
The recapitalisation comes amid strong FY’25 performance: profit before tax nearly doubled, gross earnings rose 46%, total assets approached N4 trillion, customer deposits grew 18%, and shareholders’ funds hit N424 billion, a 39% increase. Operational efficiency improved, with the cost-to-income ratio dropping from 72% to 63%, bolstered by digital investments across the Group.
With a fortified balance sheet, Sterling HoldCo is now positioned to pursue strategic expansion, deepen non-banking operations, and accelerate its revenue diversification agenda.
