Sterling Financial Holdings Grows H1 Profit 20 Per Cent to N50.3bn

Sterling Financial Holdings Grows its earnings momentum in the first half of 2026 after reporting a 20.4 per cent increase in profit after tax to N50.3 billion, driven by stronger interest income, higher operating revenue and continued balance sheet expansion despite a sharp rise in credit impairment charges.

Sterling Financial Holdings Plc recorded a 20.4 per cent increase in profit after tax to N50.3 billion for the six months ended 30 June 2026, as higher interest income and stronger operating revenue offset increased impairment charges and rising operating expenses.

The group’s unaudited financial statements showed that profit before tax rose to N55.5 billion, compared with N45.5 billion in the corresponding period of 2025, while gross earnings climbed to N279.6 billion from N212.6 billion.

The improved earnings reflect continued growth in the group’s banking operations despite a challenging macroeconomic environment characterised by elevated interest rates, inflationary pressures and higher credit risk.

Interest income increased to N223.6 billion during the period, representing a 33.8 per cent rise from N167.2 billion recorded in the first half of 2025. Net interest income also rose to N137.4 billion, up from N97.4 billion in the previous year.

Net fees and commission income grew to N26.9 billion, while other operating income more than doubled to N22.2 billion from N10.4 billion, lifting total operating income to N193.4 billion, compared with N142.9 billion a year earlier.

The performance underscores the continued benefit of higher yields across the banking sector as financial institutions capitalise on elevated interest rates and increased lending activities.

Despite the strong earnings performance, Sterling Financial Holdings significantly increased provisions for expected credit losses during the review period.

Credit loss expenses surged to N23.9 billion, more than four times the N5.2 billion reported in the corresponding period last year, indicating a more cautious provisioning approach amid prevailing economic uncertainties.

Personnel expenses also increased to N33.2 billion from N23.6 billion, while other operating expenses and administrative costs rose as the group continued investing in its workforce, technology and business expansion.

Total operating expenses climbed to N114.0 billion, compared with N92.1 billion in the first half of 2025.

Despite the higher impairment charges, the group’s non-performing loan ratio remained unchanged at 4.7 per cent, suggesting that overall asset quality remained stable during the period.

Sterling Financial Holdings strengthened its balance sheet in the first half of the year as total assets rose to N4.67 trillion, up from N3.91 trillion as of 31 December 2025.

Customer deposits increased by more than N630 billion to N3.62 trillion, reflecting sustained customer confidence and stronger deposit mobilisation across the group’s banking subsidiaries.

Loans and advances to customers also grew to N1.61 trillion, compared with N1.41 trillion at the end of 2025, highlighting continued credit expansion to businesses and households.

The growth in deposits and lending further reinforced the group’s liquidity position and its capacity to support economic activities across key sectors.

The group’s shareholders’ funds increased substantially during the review period, rising to N547.7 billion from N428.7 billion at the end of December 2025.

The improvement was supported by proceeds from the company’s rights issue, which increased share capital and share premium during the period while strengthening the capital base for future business growth and regulatory requirements.

The stronger capital position provides additional capacity for business expansion, lending growth and investment across the group’s banking and financial services businesses.

Despite recording improved profitability, the board did not recommend the payment of an interim dividend for the six-month period ended 30 June 2026.

Sterling Financial Holdings operates through Sterling Bank Limited, Alternative Bank Limited and SterlingFi Wealth Management Limited, offering commercial banking, non-interest banking and asset management services across Nigeria.