Sterling Financial Holdings Company Plc has delivered a standout performance for the first quarter ended March 31, 2025, reporting a pre-tax profit of N18.2 billion, a remarkable 125.29% increase over the same period in 2024.
The result builds on a strong full-year 2024 performance in which the group recorded N45.8 billion in pre-tax profit, up from N22.6 billion in 2023, more than doubling year-on-year.
The first-quarter showing not only underscores Sterling’s internal momentum, but also reinforces the growth trajectory of Nigeria’s banking sector, which continues to expand earnings despite an economic environment marked by high inflation, tight monetary policy, and persistent currency volatility.
Core Banking Activities Drive Strong Earnings
The engine behind Sterling’s Q1 2025 earnings was interest income, which surged by 41.66%, rising from N55.3 billion to N78.3 billion. A significant portion of this came from loans and advances to customers, which contributed N56.8 billion, up from N39.2 billion in the corresponding period last year. This reflects an aggressive loan book expansion and improved credit delivery despite economic uncertainties.
Although interest expenses increased from N28 billion to N30.9 billion, net interest income still expanded 74.12%, reaching N47.4 billion, highlighting improved interest margins and balance sheet efficiency.
Fee-based income also played a supportive role. Net fees and commission income grew by 41.67% to N10.1 billion, compared to N7.1 billion in Q1 2024. This contributed to total operating income of N64.3 billion, a 49.74% increase year-on-year.
Operational Gains and Sound Risk Management
After accounting for impairment charges, net operating income rose 50.46% to N61.8 billion, up from N41.1 billion in the same period last year. The group’s ability to scale earnings while managing risk exposures suggests strong internal controls and asset quality resilience.
Sterling’s cost-efficiency and diversified earnings base continue to distinguish it from its peers. The Q1 performance shows that the bank has managed to capture rising interest rate benefits while maintaining asset growth and lending activity.
A Stronger Balance Sheet and Improved Shareholder Value
On the balance sheet front, total assets increased modestly to N3.6 trillion, compared to N3.5 trillion in Q1 2024, reinforcing the group’s capital strength and expansion appetite.
Retained earnings also rose to N76.5 billion, a 21.37% year-on-year increase, boosting the bank’s capacity to invest and reward shareholders.
Following this performance, Sterling declared a final dividend of 18 kobo per ordinary share of 50 kobo each. The dividend—subject to applicable withholding tax—will be paid to qualified shareholders on July 11, 2025.
Banking Grows Amid Economic Headwinds
Sterling’s impressive growth reflects a broader trend within Nigeria’s banking sector, which continues to outperform other segments of the economy. Despite high inflation, fluctuating FX rates, and weak consumer demand, banks have managed to post record earnings, driven by higher interest rate environments and the increasing digitization of services.
Sterling’s earnings suggest that Nigerian banks are not only absorbing economic shocks but also leveraging macroeconomic distortions to grow margins. This includes capitalizing on elevated Treasury yields, increasing financial inclusion, and widening their footprint through digital and retail expansion.
Market Sentiment and Outlook
As of June 18, 2025, Sterling shares were priced at N5.05 on the Nigerian Exchange, reflecting modest but sustained investor confidence.
Analysts expect that the group’s solid capital position, growing loan book, and continued investment in technology will support further expansion in 2025. The results also set the stage for potential upgrades in sector outlooks by rating agencies, especially as banks begin to meet the CBN’s new capital requirements over the next two years.
