Sterling Financial Holdings Company Plc has confirmed that its core banking subsidiaries — Sterling Bank and The Alternative Bank — have been fully recapitalised in line with the revised minimum capital requirements set by the Central Bank of Nigeria (CBN).
The confirmation follows final regulatory approvals obtained in January 2026.
In a statement released on Monday, the Group said its capital-raising programme was largely completed between December 2024 and October 2025, placing it well ahead of the March 2026 industry deadline.
What they are saying
Group Chief Executive Officer, Yemi Odubiyi, said the recapitalisation strengthens the Group’s capacity to support economic growth while preserving financial stability.
- “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,” he said.
He noted that fully capitalising both Sterling Bank and The Alternative Bank reinforces the Group’s dual-bank model, enabling it to effectively serve both conventional and non-interest banking segments.
Odubiyi added that strong investor participation across the various capital programmes reflects confidence in the Group’s governance framework and long-term strategy.
With a stronger balance sheet, he said, the Group is well positioned to scale its non-banking businesses, enhance digital capabilities, and pursue disciplined growth opportunities.
Backstory
In December 2024, the Group concluded a N75 billion private placement, raising N73.86 billion in net proceeds.
Of this amount, N68.8 billion was injected into Sterling Bank, while N5 billion was allocated to The Alternative Bank.
This was followed by a N28.79 billion Rights Issue, which was oversubscribed by N10.29 billion.
Regulatory approvals secured in May 2025 allowed for the allotment of N26.639 billion under the Rights Issue, with the excess subscription restructured into a private placement to enable The Alternative Bank to meet the capital threshold for non-interest banks with national licences.
- In October 2025, Sterling HoldCo further strengthened its capital base through an N88 billion Public Offer, which was also oversubscribed.
- The CBN approved the recognition of N96.69 billion as additional capital, while the Securities and Exchange Commission (SEC) cleared the allotment of 13.81 billion shares.
In total, the Group injected N153 billion into its two banking subsidiaries, bringing them into full compliance with the revised capital requirements.
More insight
Beyond its banking operations, Sterling HoldCo plans to inject N10 billion into SterlingFI Wealth Management Ltd, its asset management subsidiary, in line with the SEC’s revised minimum capital requirements for Capital Market Operators issued in January 2026.
The additional capital will support the commencement of full operations and advance the Group’s revenue diversification strategy.
The recapitalisation milestone comes amid strong financial performance across the Group.
What you should know
Sterling Financial Holdings Company Plc (Sterling HoldCo) reported a sharp surge in earnings for the year ended December 31, 2025, with profit before tax rising by 98.3% to N90.73 billion.
- The results reflect a year marked by strong revenue growth, higher net interest income, and improved asset quality, reinforcing Sterling HoldCo’s earnings momentum amid a challenging macroeconomic environment.
- Gross earnings climbed by 46% year-on-year to N476.50 billion, supported by improved yields and stronger non-interest income contributions.
- Interest income rose by 42.8% to N369.56 billion, with loans and advances contributing N242.38 billion, up 32% year-on-year.
Net interest income expanded by 55% to N208.89 billion, despite a 29.5% increase in interest expense to N160.67 billion, reflecting improved asset-liability
