Sterling Bank, The Alternative Bank confirm full recapitalisation

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Sterling HoldCo further strengthened its capital position through N88 billion public offer in October 2025, which recorded an oversubscription. The CBN has cleared the full amount of N96.69 billion for recognition as additional capital, while the Securities and Exchange Commission (SEC) approved the allotment of 13.812 billion shares. In total, the group injected N153 billion into Sterling Bank and The Alternative Bank, bringing both institutions into full compliance with the revised capital requirements.

Group Chief Executive Officer, Sterling Financial Holdings Company (Sterling HoldCo) Plc, Yemi Odubiyi said the recapitalisation strengthens the group’s ability to support economic activity while maintaining financial resilience.

He said: “This exercise goes beyond regulatory compliance. It positions us to expand credit responsibly, accelerate innovation, and provide sustained support to businesses and households, while maintaining the discipline required in a challenging operating environment”.

He noted that fully capitalising both Sterling Bank and The Alternative Bank reinforces the group’s dual-bank structure and its ability to serve conventional and non-interest segments.

“Our structure enables efficient deployment of capital across complementary markets and positions us to respond with agility to evolving customer needs,” Odubiyi said.

He added that strong investor participation across the capital programmes reflects confidence in the Group’s governance and long-term strategy.

He added that the strengthened balance sheet provides a platform for the group’s next phase of growth.

“We are entering this phase from a position of significant financial strength, with the capacity to scale non-banking businesses, deepen digital capabilities, and pursue disciplined expansion opportunities while delivering sustainable value for shareholders,” Odubiyi said.

In addition to strengthening its banking subsidiaries, Sterling HoldCo plans to inject N10 billion into SterlingFI Wealth Management Limited, its asset management subsidiary, in line with the revised minimum capital requirements for Capital Market Operators issued by the SEC in January 2026. The capital injection will support the commencement of full operations and contribute to the group’s revenue diversification objectives.

The recapitalisation confirmation coincides with a period of strong financial performance across the group.

Interim results of Sterling HoldCo for the year ended December 31, 2025 showed 99 per cent increase in profit before tax, while gross earnings rose by 46 per cent across both interest and non-interest income streams. Total assets expanded to nearly N4 trillion, customer deposits grew by 18 per cent, and shareholders’ funds increased by 39 per cent to N424 billion, reflecting sustained profitability and balance-sheet expansion.

Performance was supported by improved operational efficiency, with the cost-to-income ratio declining to 63 per cent from 72 per cent in 2024, alongside continued investment in digital and operational capabilities across the Group’s banking and non-banking businesses. These factors have strengthened earnings resilience, enhanced service delivery, and reinforced the Group’s capacity to support higher transaction volumes while maintaining prudent risk management.

With a strengthened capital base and residual capacity for further investment, Sterling HoldCo is positioned to pursue strategic expansion opportunities, deepen its non-banking operations, and accelerate its revenue diversification agenda across its portfolio.