Sterling Holdco’s nine-month profit rises to $56.1 million on strong core lending

Sterling Financial Holdings Company Plc posted a 21 percent jump in nine-month profit to N75.37 billion ($56.11 million), as an aggressive credit rollout and fatter loan yields lifted margins. The Lagos-based lender’s unaudited interim results show earnings climbing from N62.30 billion ($46.38 million) a year earlier, helped by strong customer deposit inflows.

Pretax profit for the period ended Sept. 30 advanced 37.1 percent to N97.28 billion ($72.42 million) from N70.96 billion ($52.83 million). The gains came as gross earnings climbed 33.2 percent to N454.94 billion ($338.69 million), giving the lender enough room to comfortably absorb higher borrowing expenses and heavier provisions for bad debts.

Margins expand across portfolios

Net interest income jumped to N205.90 billion ($153.28 million) from N143.04 billion ($106.49 million), driven by total interest revenue that crossed N353.78 billion ($263.38 million). That loan income outpaced N147.88 billion ($110.1 million) in funding costs, alongside N40.28 billion ($30 million) set aside to cover impaired loans.

Retail and corporate advances remained the bank’s main earnings engine. Interest collected from customer loans reached N244.42 billion ($181.96 million), up from N175.03 billion ($130.30 million). Non-interest channels also gained traction, with net fee and commission income rising to N39.63 billion on digital banking transactions and loan facility charges.

Credit quality remains stable

Other operating income nearly doubled to N40.23 billion ($29.95 million), supported by commodity trading deals and investment returns. That performance helped offset a mild drop in trading gains to N21.3 billion ($15.86 million), while cash-yield income rose to N32.03 billion ($23.85 million) amid changing local interest rates.

Asset quality held steady despite rapid balance sheet growth. The lender’s nonperforming loan ratio trimmed to 4.6 percent from 4.7 percent in December 2025. Sterling Holdco continues to run its operations through three main units: commercial banking flag Sterling Bank, non-interest arm Alternative Bank Limited, and asset manager SterlingFi Wealth Management.

Capital base crosses thresholds

CardinalStone Asset Management Limited retains the largest equity holding in the group at 24.33 percent, followed by Silverlake Investments Limited with a 19.88 percent stake. The holding company’s total assets climbed to N5.1 trillion ($3.8 billion) from N3.91 trillion ($2.91 billion) nine months earlier, reflecting aggressive balance sheet expansion.

Deposits surged to N3.84 trillion ($2.86 billion), providing low-cost funding for net customer loans that reached N1.82 trillion ($1.35 billion). Total equity jumped to N595.16 billion ($443.08 million), bolstered by N94.40 billion ($70.28 million) in public offering proceeds and retained earnings that expanded to N124.38 billion ($92.59 million).