Strong Start to 2025 Builds on Full-Year Momentum
Sterling Financial Holdings Company Plc has delivered an impressive first-quarter performance for 2025, posting a pre-tax profit of ₦18.2 billion, marking a 125.29% year-on-year increase compared to the same period in 2024. The performance extends the group’s solid trajectory, following a more than twofold increase in pre-tax profit for the full year 2024 — rising to ₦45.8 billion from ₦22.6 billion in 2023.
This early 2025 growth underscores Sterling's strengthening profitability and strategic positioning in Nigeria’s financial services sector.
Interest Income Anchors Profitability Surge
A key contributor to Sterling's robust Q1 performance was a strong expansion in interest income, which rose by 41.66% to ₦78.3 billion in the first quarter, up from ₦55.3 billion a year earlier.
The bulk of this growth came from loans and advances to customers, which contributed ₦56.8 billion, compared to ₦39.2 billion in Q1 2024 — a 44.9% increase. While interest expenses also rose, reaching ₦30.9 billion (from ₦28 billion), net interest income still grew significantly, up 74.12% year-on-year to ₦47.4 billion.
Stronger Fee-Based Earnings and Operating Income
Sterling further boosted its earnings through net fees and commission income, which rose by 41.67% to ₦10.1 billion from ₦7.1 billion in the previous year. This, combined with net interest income, brought total operating income to ₦64.3 billion, reflecting a 49.74% year-on-year rise.
After accounting for impairments, net operating income reached ₦61.8 billion, up 50.46% from ₦41.1 billion in Q1 2024 — indicating strong asset quality management and improved credit performance.
Balance Sheet Growth Remains Steady
On the balance sheet, total assets grew moderately to ₦3.6 trillion, a 2.67% increase from the ₦3.5 trillion reported in Q1 2024. Retained earnings stood at ₦76.5 billion, rising 21.37% year-on-year — reflecting the group’s earnings strength and capacity to build shareholder value.
Dividend Declaration and Market Update
Reinforcing its commitment to shareholder returns, Sterling has declared a final dividend of 18 kobo per ordinary share of 50 kobo each for the 2024 financial year. The dividend, which is subject to withholding tax, is scheduled for payment on 11 July 2025 to qualifying shareholders.
As of June 18, 2025, the company’s stock was trading at ₦5.05 on the Nigerian Exchange, reflecting investor confidence in its earnings outlook.
Outlook
Sterling’s strong Q1 performance places the group on solid footing for 2025. With consistent growth in interest income, fee-based earnings, and net operating income, the company appears well-positioned to navigate market headwinds and capitalize on emerging opportunities in Nigeria’s evolving financial landscape.