Sterling Financial Holdings Company Plc grew its profit after tax by 21 percent to N75.37 billion in the nine months ended September 2026, supported by stronger interest income and higher operating earnings, despite a sharp increase in credit impairment charges.
The financial services group, in its unaudited third-quarter financial statements filed for the period, reported profit after tax of N75.37 billion, compared with N62.30 billion in the corresponding period of 2025.
Gross earnings rose 33.1 percent to N454.94 billion from N341.67 billion, while profit before tax increased 37.1 percent to N97.28 billion from N70.96 billion, reflecting improved income generation across its operations.
Interest income, the group’s largest income source, increased to 34.8 percent to N353.78 billion from N262.42 billion, driven by higher earnings from loans and advances to customers, which generated N244.42 billion during the period, compared with N175.03 billion a year earlier.
Income from debt instruments measured at fair value through other comprehensive income also increased to N57.73 billion from N45.77 billion, while interest income from cash and cash equivalents rose to N32.03 billion from N23.53 billion.
However, the growth in interest income was partly offset by higher funding costs. Interest expenses increased 23.9 per cent to N147.88 billion from N119.38 billion, leaving net interest income at N205.90 billion, up 43.9 per cent from N143.04 billion in the comparable period.
Net fees and commission income grew 10.4 percent to N39.63 billion from N35.88 billion, while other operating income nearly doubled to N40.23 billion from N20.59 billion.
Net trading income, however, declined 6.5 percent to N21.30 billion from N22.78 billion.
The stronger income performance was accompanied by a significant increase in credit loss expenses, which rose nearly fivefold to N40.28 billion from N8.09 billion in the same period of 2025.
Despite the higher impairment charges, net operating income after impairment increased 24.5 percent to N266.77 billion from N214.20 billion.
Total operating expenses rose 18.3 percent to N169.49 billion from N143.24 billion, reflecting increases in personnel costs, administrative expenses and depreciation and amortisation.
Personnel expenses climbed 33.7 per cent to N54.21 billion from N40.56 billion, while general and administrative expenses rose 15.5 per cent to N47.54 billion from N41.17 billion.
Other operating expenses increased to N47.00 billion from N40.75 billion, while depreciation and amortisation rose to N8.85 billion from N6.09 billion.
The group’s non-performing loan ratio improved slightly to 4.6 percent in September 2026 from 4.7 percent at the end of December 2025, according to the directors’ report.
Its balance sheet also expanded during the period, with total assets rising 30.4 per cent to N5.10 trillion in September 2026 from N3.91 trillion at the end of 2025.
Customer deposits increased 28.7 per cent to N3.84 trillion from N2.98 trillion, while loans and advances to customers grew 28.8 per cent to N1.82 trillion from N1.41 trillion.
Total shareholders’ equity increased to N595.16 billion from N428.70 billion, supported partly by proceeds from a public offering that contributed N94.40 billion to equity during the period.
The group’s cash and balances with the Central Bank of Nigeria stood at N725.27 billion at the end of September, down from N761.64 billion at December 2025.
Sterling Financial Holdings operates through Sterling Bank Limited, Alternative Bank Limited, and SterlingFi Wealth Management Limited, spanning commercial banking, non-interest banking, and asset management.
For the third quarter alone, the group reported profit after tax of N25.08 billion, up 22.2 per cent from N20.52 billion in the corresponding quarter of 2025. Quarterly operating income rose to N113.64 billion from N79.42 billion, while profit before tax increased to N41.75 billion from N25.41 billion.
The holding company recently completed its 10-for-1 share capital reconstruction and resumed trading on the Nigerian Exchange Limited (NGX) on October 8, 2026.
The current share price of Sterling Bank as at the close of the last trading day on Wednesday stood at N77.00 per share on the Nigerian Stock Exchange (NGX), recording a 1.3 percent. Sterling began the year with a share price of N7.05 and has since gained 992 percent on that price valuation, ranking it first on the NGX in terms of year-to-date performance.
Chinwe Michael
Chinwe Michael is a Nigerian business journalist and media professional with over 4 years of experience covering companies, financial markets, banking, fintech, economic policy, financial inclusion, and corporate affairs. She currently leads the Companies & Markets desk at BusinessDay, where she drives coverage of Nigeria’s corporate and capital markets, translates complex financial data into accessible stories, and mentors younger journalists. Prior to that, she was the head of the financial inclusion/fintech desk. With a background in banking and finance and extensive experience in media and communications, Michael has developed expertise in financial journalism, economic analysis, investigative reporting and market intelligence. Her work examines how monetary policy, corporate performance, capital flows, technology, and regulatory decisions affect businesses, investors, and households. She was selected from about 3,000 applicants as one of 20 journalists for Cohort 4 of the MTN Media Innovation Programme, gaining exposure to new approaches to journalism, technology, and media innovation. Her international journalism experience and engagement with professionals across Russia, Dubai, Saudi Arabia, and others in different sectors have further broadened her understanding of global communication and development.
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