Sterling HoldCo grows profit 20% amid loan loss provisions

Sterling Financial Holdings Company Plc has announced a 20.4% rise in its profit after tax for the first half of 2026, reaching N50.30 billion. This financial growth was achieved even as the company substantially increased its provisions for loan losses, reflecting an expansion in its credit portfolio. The profit after tax for the six months ending June 30, 2026, is up from N41.78 billion recorded in the same period of 2025.

Profit before tax also saw a healthy increase of 21.9%, reaching N55.53 billion, while gross earnings climbed by 31.5% to N279.6 billion. However, the group's credit impairment charges experienced a dramatic surge, escalating by approximately 358% from N5.21 billion in the prior year to N23.85 billion. This significant increase in provisioning is attributed to the costs associated with supporting a growing loan book, although the non-performing loan ratio remained stable at 4.7%.

Interest income contributed significantly to the company's performance, rising by 33.8% to N223.58 billion. This growth was driven by increased lending and investment securities. Net interest income also saw a substantial rise of 41%, reaching N137.39 billion, despite a 23.6% increase in interest expenses.

Sterling Financial Holdings Company also reported strong growth in customer deposits, which increased by 21.1% to N3.62 trillion. Loans and advances grew by 13.7% to N1.61 trillion. The company's total assets expanded by 19.3% to N4.67 trillion, and shareholders' funds saw a nearly 28% increase, bolstered by the successful completion of the group's rights issue.