Nigeria’s Sterling Holdco sees H1 profit surge to $37 million on strong lending

Sterling Financial Holdings Company Plc, a Lagos-based financial services group, reported stronger earnings for the first half of 2026 as higher lending income and improved operating performance lifted profit despite rising funding costs. According to its condensed unaudited interim financial statements, profit after tax increased to N50.3 billion ($37 million) from N41.78 billion ($30.6 million) in the corresponding period of 2025, supported by growth in gross earnings and net interest income.

Core banking gains offset trading slump

Gross earnings rose to N279.6 billion ($205.1 million) from N212.61 billion ($156 million) a year earlier, reflecting stronger business activity across the group. Interest income climbed to N223.58 billion ($164 million) from N167.16 billion ($122.5 million), helping net interest income increase to N137.39 billion ($100.72 million) from N97.42 billion ($71.4 million). The gain came even as interest expenses rose to N86.18 billion ($63.2 million) from N69.75 billion ($51.15 million), underscoring the group’s ability to generate stronger returns from its lending business.

Beyond lending, Sterling also recorded broader income growth across key business lines. Net fee and commission income increased to N26.87 billion ($19.7 million) from N22.07 billion ($16.17 million), while other operating income more than doubled to N22.19 billion ($16.3 million) from N10.37 billion ($7.6 million). Those gains helped cushion weaker trading income, which declined to N6.96 billion ($5.1 million) from N13.01 billion ($9.53 million), allowing the group to sustain earnings through its core banking and financial services operations rather than market-related activity.

Sterling financial drives strategic asset growth

The stronger earnings performance comes as Sterling Financial Holdings continues to broaden its footprint across Nigeria through its portfolio of financial services businesses. The group owns Sterling Bank Limited, non-interest lender Alternative Bank Limited, and asset manager SterlingFi Wealth Management Limited. Having completed one of the banking sector’s biggest regulatory transitions in recent years, the group is now focused on expanding its balance sheet, deepening customer relationships, and building on its core banking franchise.

That expansion was evident across the balance sheet during the six-month period. Total assets increased to N4.66 trillion ($3.4 billion) from N3.91 trillion ($2.86 billion) at the end of December 2025, supported by customer deposits, which grew to N3.61 trillion ($2.64 billion) from N2.98 trillion. Loans and advances to customers rose to N1.61 trillion ($1.18 billion) from N1.41 trillion ($1.03 billion), while the non-performing loan ratio held steady at 4.7 percent. Shareholders’ equity climbed to N547.67 billion ($401.7 million) from N428.7 billion ($314.5 million), with retained earnings increasing to N105.62 billion ($77.47 million) from N65.89 billion ($48.3 million), reflecting the impact of stronger profitability during the period.