LAGOS, Nigeria — Sterling Financial Holdings Plc reported a 20.4% increase in profit after tax for the first half of 2026, driven by strong loan growth, higher interest income, and continued expansion of its deposit base, as the group’s total assets approached the ₦5 trillion mark.
The financial services group said its unaudited results for the six months ended June 30, 2026, reflected broad-based growth across key financial indicators, underscoring resilience despite Nigeria’s evolving macroeconomic environment.
Gross earnings climbed 31.5% year-on-year to ₦279.6 billion, supported by a 33.7% rise in interest income to ₦223.6 billion, driven by growth in the loan portfolio and improved asset yields.
Net interest income increased by 41% to ₦137.4 billion, while non-interest income rose 23.3% to ₦56.0 billion, boosted by stronger fee-based revenues and higher operating income.
The Group’s profit before tax (PBT) advanced 21.9% to ₦55.5 billion, while profit after tax (PAT) reached ₦50.3 billion, representing a 20.4% increase compared with the corresponding period in 2025.
Sterling Financial also strengthened its balance sheet during the reporting period, with total assets expanding 19.3% to ₦4.67 trillion, moving closer to the ₦5 trillion milestone.
Customer deposits grew 21.1% to ₦3.62 trillion, reflecting sustained customer confidence and providing additional funding for disciplined loan book expansion.
The Group’s profitability metrics also improved, with return on average equity (ROAE) standing at 20.6%, while return on average assets (ROAA) increased to 2.35%, up from 2.05% recorded in the same period last year.
Shareholders’ funds rose 27.8% to ₦547.7 billion, largely supported by the successful public offer that raised ₦96.6 billion through the issuance of 13.8 billion ordinary shares.
The stronger capital position has also been reflected in investor sentiment, with Sterling Financial’s share price appreciating by more than 15% since the start of 2026. Basic earnings per share stood at 77 kobo, reflecting the enlarged share base following the capital raise.
Sterling Financial attributed its performance to continued investment in modernising its technology infrastructure and operating model across its businesses, including Sterling Bank, AltBank, and SterlingFI.
According to the Group, ongoing digital transformation initiatives have improved service delivery, enhanced operational efficiency, and strengthened its ability to manage growing customer volumes while maintaining prudent risk management standards.
Outlook
With a stronger capital base, expanding deposit franchise, diversified earnings streams, and improving operational efficiency, Sterling Financial said it is well positioned to sustain growth in the second half of 2026.
The Group expects to continue deploying capital into productive sectors of the economy while maintaining disciplined lending and enhancing long-term shareholder value.