Sterling Financial Holdings Company Plc grew its half-year profit after tax by 20.4 percent to N50.3 billion in the first six months of 2026, driven by stronger lending, higher interest income, and rapid deposit growth, even as impairment charges surged more than fourfold amid an expanding loan book.
The financial holding company reported profit after tax of N50.30 billion for the six months ended June 30, compared with N41.78 billion in the corresponding period of 2025. Profit before tax rose by 21.9 percent to N55.53 billion from N45.55 billion, while gross earnings surged 31.5 percent to N279.6 billion.
The results reinforce Sterling HoldCo’s ability to sustain earnings growth in Nigeria’s high-interest-rate environment, although the pace of profit expansion lagged revenue growth as the bank absorbed significantly higher provisioning costs associated with rapid credit expansion.
Interest income, the group’s largest revenue source, increased by 33.8 percent to N223.58 billion from N167.16 billion, reflecting growth in loans and investment securities as elevated interest rates continued to support asset yields.
However, interest expenses also increased by 23.6 percent to N86.18 billion, raising funding costs as banks competed aggressively for deposits. Despite this, net interest income expanded by 41 percent to N137.39 billion, underscoring the widening spread between asset yields and funding costs.
