NIGERIA · BANKING · RESULTS
Key Facts
- The country Nigeria is Africa’s most populous nation, with more than 200 million people, and Lagos is its financial capital.
- What happened Sterling Financial Holdings profit before tax for nine months was 97.28 billion naira (about US$72.3 million), up 37.1%.
- The company Sterling Financial Holdings is the Lagos-listed parent of Sterling Bank and interest-free Alternative Bank.
- The catch Profit after tax grew only 21%, because tax and loan-loss charges rose faster than income.
- The balance sheet Total assets reached 5.10 trillion naira (about US$3.79 billion), up 30.4% since December 2025.
- US angle Foreign investors hold 23.6% of shares, and India’s State Bank of India has a board seat.
Sterling Financial Holdings profit before tax rose 37.1% in the first nine months of 2026, to 97.28 billion naira (about US$72.3 million). The Nigerian group, which owns Sterling Bank, published the figure in unaudited statements for the period to 30 September 2026.
For US readers, the result shows how a mid-sized Nigerian lender is growing even as the country’s currency and prices remain volatile. Sterling Financial Holdings is listed on the Nigerian Exchange, the stock market in Lagos, and about 23.6% of its shares sit with foreign holders.
What Sterling Reported for Nine Months
Gross earnings, meaning total income before costs, reached 454.94 billion naira (about US$338.1 million). That is up 33.2% from 341.67 billion naira (about US$253.9 million) a year earlier.
Sterling Financial Holdings profit before tax climbed from 70.96 billion naira (about US$52.7 million) to 97.28 billion naira (about US$72.3 million). Profit after tax rose to 75.37 billion naira (about US$56.0 million) from 62.30 billion naira (about US$46.3 million).
All naira figures here are converted at about 1,345 naira to the US dollar on 31 October 2026. The dollar values are rounded and serve only as a guide.
Where the Extra Profit Came From
Net interest income, the gap between loan earnings and what depositors are paid, jumped 43.9% to 205.90 billion naira (about US$153.0 million). Interest income itself rose to 353.78 billion naira (about US$262.9 million), while interest expense grew more slowly.
Other operating income almost doubled to 40.23 billion naira (about US$29.9 million) from 20.59 billion naira (about US$15.3 million). Net trading income slipped slightly to 21.30 billion naira (about US$15.8 million), and fee income edged up to 39.63 billion naira (about US$29.5 million).
Why Profit After Tax Grew More Slowly
The tax charge more than doubled to 21.91 billion naira (about US$16.3 million) from 8.66 billion naira (about US$6.4 million). That lifted the group’s effective tax rate to about 22.5% of pre-tax profit, against about 12.2% a year before.
Credit loss expense, the money set aside for loans that may not be repaid, rose almost five-fold to 40.28 billion naira (about US$29.9 million). Costs overall grew by 18.3%, slower than operating income, which rose 38.1%.
Assets, Deposits and Loan Quality
Total assets grew to 5.10 trillion naira (about US$3.79 billion) from 3.91 trillion naira (about US$2.91 billion) at the end of 2025. Customer deposits rose 28.7% to 3.84 trillion naira (about US$2.86 billion).
Loans and advances to customers reached 1.82 trillion naira (about US$1.35 billion), up 28.8% since December. The share of loans in default, known as the non-performing loan ratio, stood at 4.6%, slightly better than 4.7% at the end of 2025.
A Strong Third Quarter
In the third quarter alone, Sterling Financial Holdings profit before tax reached 41.75 billion naira (about US$31.0 million). The same quarter of 2025 gave 25.41 billion naira (about US$18.9 million), so the quarterly rise is about 64%.
Total equity, the owners’ stake in the business, grew 38.8% to 595.16 billion naira (about US$442.3 million). The group issued 13.81 billion new shares in a public offer, raising 94.40 billion naira (about US$70.2 million).
The Share Reconstruction
Sterling Financial Holdings consolidated its shares on a one-for-ten basis, effective on Thursday 8 October 2026. Trading on the Nigerian Exchange was suspended from 23 September to 8 October while the records were updated.
The exercise does not change total shareholders’ funds, but it cuts the number of shares in issue. Earnings per share, restated for the consolidation, came to 11.35 naira (about US$0.008), against 12.82 naira (about US$0.010) a year earlier.
What It Means for US Readers
Nigerian banks are a way for investors to bet on Africa’s largest consumer market, and Sterling is one of the mid-sized names. The group’s profit in dollars is small, at about US$72.3 million before tax, so its weight in any portfolio is limited.
State Bank of India, India’s largest state-owned lender, has a director on the board, which shows how emerging-market lenders are linking up.
What Is Not Known
The statements are unaudited, so the numbers could still change when the full-year accounts are signed off. The directors did not recommend an interim dividend for the nine months, so shareholders get no payout with these results.
It is not known how much of the Sterling Financial Holdings profit gain from other operating income will repeat in the final quarter. The naira’s moves against the dollar could also change how foreign investors see these earnings.
More: Nigeria news in English, every day from The Rio Times.
Frequently Asked Questions
How much profit did Sterling Financial Holdings make?
Sterling Financial Holdings profit before tax for the nine months to 30 September 2026 was 97.28 billion naira (about US$72.3 million), up 37.1%. Profit after tax was 75.37 billion naira (about US$56.0 million).
What does Sterling Financial Holdings own?
It is a holding company that owns Sterling Bank, a commercial bank, and Alternative Bank, an interest-free lender. It also owns SterlingFi Wealth Management, an asset manager.
Why did profit after tax grow slower than pre-tax profit?
The tax charge more than doubled to 21.91 billion naira (about US$16.3 million). Loan-loss provisions also rose almost five-fold.
What is the one-for-ten share reconstruction?
Shareholders received one new share for every ten old ones from 8 October 2026. Total shareholders’ funds did not change, but earnings per share were restated.
Are these figures final?
No, they are unaudited interim statements for the third quarter of 2026. The audited full-year figures will follow after the year ends on 31 December.
Sources: Sterling Financial Holdings Company Plc, Condensed Unaudited Interim Financial Statements for the Period Ended 30 September 2026, October 2026; Sterling Financial Holdings Company Plc, Condensed Unaudited Interim Financial Statements for the Period Ended 30 September 2025 (prior-year comparison), October 2025.
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error
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