By JKNewsMedia
STRONG REVENUE growth and operational efficiency have propelled Sterling Financial Holdings Company Plc to a 157% year-on-year rise in profit-after-tax, as disclosed in its unaudited financial results for the half-year ended 30 June 2025.
According to the Group, profit-after-tax climbed to ₦41.78 billion from ₦16.26 billion recorded in the corresponding period of 2024.
Earnings per share also advanced to 89 Kobo from 56 Kobo, reflecting improved returns to shareholders.
The financial holding company noted that gross earnings rose by 39.7% to ₦212.61 billion, compared to ₦152.20 billion in the previous year.
Interest income also stood at ₦167.16 billion, up 38.3%, while non-interest income increased by 45% to ₦45.45 billion—figures the Group attributed to its strategic push for diversified income streams.
Sterling HoldCo further reported a drop in cost-to-income ratio to 64.5%, down from 75.7%, underscoring what it described as the impact of ongoing cost optimisation measures.
Total assets said it reached ₦4.08 trillion as of June 2025, marking a 15.3% increase from ₦3.54 trillion recorded at the end of December 2024. The Group stated that shareholders’ funds also grew by 22.9%, driven by retained earnings and recent recapitalisation efforts.
Its asset quality also improved, with the non-performing loan ratio declining to 5.1% from 5.4% at the close of the 2024 financial year.
The Group highlighted this as a reflection of disciplined credit risk management across its portfolio.
In its financial release, Sterling HoldCo further confirmed that it had concluded a ₦100 billion capital raise via private placement and rights issue.
The proceeds, as explained, were used to fully recapitalise The Alternative Bank and strengthen the capital base of Sterling Bank, its core commercial banking subsidiary.
Sterling HoldCo also disclosed plans to proceed with the public phase of its capital programme, targeting ₦53 billion to close the recapitalisation gap for Sterling Bank.
This is part of a broader US$400 million capital raising strategy approved by shareholders at the company’s Annual General Meeting held on 30 June 2025.
Commenting on the performance, Group Chief Executive Officer, Yemi Odubiyi, said the results reflected a deliberate strategic direction and resilient business structure.
“Our performance reflects not just robust growth in core income lines, but also our success in building a resilient and agile business model,” Odubiyi stated in the release.
He added that the Group remains committed to responsible growth, prudent risk management, and sustainable impact.
The Group reiterated its commitment to scaling investments across Nigeria’s critical growth sectors.
It stated that ongoing initiatives in renewable energy, healthcare, and community development form part of its long-term plan to deliver measurable value to stakeholders and the wider economy.
As Sterling HoldCo advances into the second half of 2025, the Group affirmed that it remains focused on capital mobilisation, digital innovation, and operational resilience to support its growth trajectory.
