Sterling Financial Holdings Company Plc has released its audited group financial results for the full year ended December 31, 2025, reporting its profit before tax rose by 89.19% year-on-year to N86.78 billion, compared to the N45.86 billion recorded in FY2024.
According to the audited financial statements filed with the Nigerian Exchange (NGX) on Friday, May 15, 2026, the Group’s gross earnings for 2025 stood at N486.80 billion, up from N337.19 billion in 2024, representing a 44.37% year-on-year increase.
Profit after tax also jumped by 74.74% to N76.33 billion up from N43.675 billion reflecting broad-based earnings expansion despite persistent cost pressures and elevated loan impairments.
This sterling performance was largely driven by robust growth in interest income and other income as well as a surge in fee and commission earnings.
Key highlights (FY2025 vs FY2024):
- Gross earnings revenue: N486.799 billion; +44.37% YoY
- Interest income: N367.07 billion; +41.82% YoY
- Other operating income: N37.25 billion; +102.23%
- Interest expenses: N158.42 billion; +27.75% YoY
- Net interest income: N208.65.32 billion; +54.79% YoY
- Net fee and commission income: N43.70 billion; +28.83% YoY
- Credit loss expense: N32.92 billion; +205.38% YoY
- Pre-tax profit: N86.78 billion; +89.22% YoY
- Post-tax profit: N76.33 billion; +74.74% YoY
- Earnings per share: 152 kobo; +0.66% YoY
- Total assets: N3.91 trillion; +10.45% YoY
- Total Liabilities: N3.48 trillion; +7.74%
- Loans and advances: N1.41 trillion; +28.18% YoY
- Customer deposits: N2.98 trillion; + 18.52% YoY
- Shareholders’ funds: N 76.33 billion; + 74.79% YoY
Driving the numbers:
Sterling Financial Holdings’ performance was largely driven by strong expansion in both interest and non-interest revenue streams, alongside a meaningful reduction in funding costs relative to income growth.
- Interest income which is the dominant revenue driver, accounted for approximately 89% of gross earnings, climbing +41.82% year-on-year to N367.07 billion, supported by an expansion in the loan book and yields from government securities.
- However, interest expenses grew by slower pace at +27.75% to N158.42 billion, helping net interest income to rise by a stronger +54.79% to N208.65.32 billion.
- Net fee and commission income rose by +28.83% to N43.70 billion, suggesting increased transaction volumes across trade services, retail banking, and digital channels.
- Gains from foreign exchange trading, investment securities, and asset management fees further bolstered the overall revenue from non-interest income stream.
- Credit loss expense surged by 205.38% year-on-year to N32.92 billion — a significant escalation that dragged earnings lower.
- Notwithstanding, the net interest income after impairment provision grew by +54.79% to N208.65.32 billion.
The wide gap between gross earnings and pre-tax profit of N86.78 billion points to impact of Group operating costs on the bottom line, including staff expenses, executive compensation, corporate social responsibility spending of approximately N115.78 billion, up from N87.44 billion in 2024.
Balance sheet position:
Total assets grew by +10.45% to N3.91 trillion while total liabilities grew at slower pace of ; +7.74% to N3.48 trillion, reflecting steady expansion of the Group’s balance sheet.
- Loans and advances to customers rose +28.18% YoY to N1.41 trillion, driven by increased lending to retail, small and medium-sized enterprise (SME) customers.
- Customer deposits, the Group’s primary funding base, rose to N2.98 trillion, +18.52% higher than N2.52 trillion in 2024, supporting a healthy liquidity profile. Borrowings and other liabilities remained manageable.
- Shareholders’ equity climbed +74.79% to N76.33 billion, reflecting solid retained earnings growth and improved internal capital generation.
On asset quality, non-performing loans (NPLs) improved to 4.7% of gross loans from 5.4% in 2024, as debt securities issued and other borrowed funds dropped by -6.64% year-on-year to N231.44 billion in 2025, down from N247.89 billion in 2024.
Market performance:
The market is yet to respond to the result announcement as the result came in at the close of trading session on Friday, May 15, 2026.
- Shares of the bank traded on the NGX closed lower at N7.80 per share, recording a 0.6% decline from its previous closing price of N7.85.
- The stock had hit N8.95 on February 25, 2026 before declining to N7.20 on March 11, 2026. Since then, it has maintained a sluggish movement.
- Sterling began the year at N7.05 per share and has since gained 10.6%, ranking 88th on the NGX in year-to-date performance.
Sterling Financial Holdings is currently the 38th most valuable stock on the NGX with a market capitalisation of N407 billion, representing approximately 0.253% of the total equity market value.
What you should know:
Sterling Financial Holdings did not declare any dividend — interim or final — for the 2025 financial year.
- In the company’s financial statements, the board noted that dividends are considered only after profit retention, regulatory requirements, and capital adequacy conditions are satisfied.
- The decision aligns with a broader directive issued by the Central Bank of Nigeria (CBN) instructing banks operating under regulatory forbearance to suspend dividend payments.
- CBN directive also deferred bonuses for executive and senior management staff, and told banks to refrain from new investments in foreign subsidiaries or offshore ventures.
The CBN stated that the suspension will remain in place until affected banks fully exit the forbearance regime and their capital adequacy and provisioning levels are independently verified as compliant with prevailing regulatory standards.
