By Abubakar Yunusa
Sterling Financial Holdings Company Plc has posted an 89.19 per cent increase in profit before tax for the 2025 financial year, rising to N86.78bn from N45.86bn recorded in 2024.
The company disclosed this in its audited financial results filed with the Nigerian Exchange on Friday.
The group’s gross earnings rose by 44.37 per cent to N486.80bn in 2025 from N337.19bn in the previous year.
Profit after tax also climbed by 74.74 per cent to N76.33bn, compared to N43.68bn recorded in 2024.
The strong performance was driven by growth in interest income, increased fee and commission earnings, and improved non-interest revenue streams.
Interest income grew by 41.82 per cent to N367.07bn, supported by expansion in the bank’s loan portfolio and higher yields from government securities.
Despite rising operating costs, interest expenses increased at a slower pace of 27.75 per cent to N158.42bn, pushing net interest income up by 54.79 per cent to N208.65bn.
Net fee and commission income also rose by 28.83 per cent to N43.70bn on the back of increased transactions across retail banking, trade services, and digital channels.
Other operating income surged by 102.23 per cent to N37.25bn, boosted by gains from foreign exchange trading, investment securities, and asset management activities.
However, the group recorded a sharp rise in credit loss expenses, which jumped by 205.38 per cent to N32.92bn during the year under review.
Operating expenses also weighed on earnings as staff costs, executive compensation, and corporate social responsibility spending rose to about N115.78bn from N87.44bn in 2024.
The group’s total assets increased by 10.45 per cent to N3.91tn, while total liabilities rose by 7.74 per cent to N3.48tn.
Loans and advances to customers climbed by 28.18 per cent to N1.41tn, driven largely by increased lending to retail and small and medium-scale enterprises.
Customer deposits rose by 18.52 per cent to N2.98tn from N2.52tn in 2024, strengthening the group’s liquidity position.
Shareholders’ funds also surged by 74.79 per cent to N76.33bn, reflecting stronger retained earnings and improved internal capital generation.
The company further reported an improvement in asset quality, with non-performing loans dropping to 4.7 per cent from 5.4 per cent in 2024.
Debt securities and other borrowed funds declined by 6.64 per cent to N231.44bn in 2025 from N247.89bn recorded a year earlier.
