Sterling Financial Holdings Company Plc has announced that it will launch a public offer in a matter of weeks as it seeks to meet the new capital threshold set by the Central Bank of Nigeria.
This was disclosed in a statement accompanying the release of its half-year financial report on Wednesday.
The group had raised about N100bn via private placement and rights issue in the past, which it said enabled the full recapitalisation of Alternative Bank (its ethical banking subsidiary) and strengthened the capital base of Sterling Bank, its flagship subsidiary.
At the end of the last Monetary Policy Committee meeting, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, disclosed that eight banks have met the new minimum capital thresholds while others are working towards it.
In March 2024, the CBN directed commercial banks with international authorisation to increase their capital base to N500bn and national banks to N200bn, while those with regional authorisation are expected to achieve a N50bn capital floor.
Similarly, non-interest banks with national and regional authorisations will need to increase their capital to N20bn and N10bn, respectively.
CBN gave the banks a deadline of March 2026.
The statement by Union Bank read, “The group is set to enter the public phase of its capital raising programme in the coming weeks, aiming to close the N53bn recapitalisation gap of Sterling Bank and further strengthen the institution’s capacity for sustained growth across its diversified income streams.
“This public offer is the first phase of the US$400m capital raising programme approved by Sterling Holdco’s shareholders at its Annual General Meeting, which was held on the 30th of June 2025.”
At half-year 2025, Sterling HoldCo reported a 157 per cent year-on-year surge in profit after tax in its unaudited results. The Group’s PAT reached N41.78bn from N16.26bn in the same period last year.
Gross earnings climbed by 39.7 per cent to N212.61bn compared to N152.20bn for H1 2024, while interest income rose by 38.3 per cent to N167.16bn, and non-interest income increased by 45 per cent to N45.45bn, attesting to the Group’s strategic focus on revenue diversification. Total assets stood at N4.08tn at the end of June, representing a 15.3 per cent increase from N3.54tn in December 2024.
Commenting on the group’s performance and long-term vision, Group Chief Executive Officer of Sterling Financial Holdings Company, Yemi Odubiyi, said, “Our outstanding half-year results are the product of clear strategic focus and a relentless drive to create lasting value for our stakeholders. Our performance reflects
not just robust growth in core income lines, but also our success in building a resilient and agile business model, capable of delivering superior returns even in a dynamic macroeconomic environment.
“As we continue to diversify our income streams and invest in operational efficiency, we remain steadfast in our commitment to responsible growth, prudent risk management, and sustainable impact. Looking ahead to the next phase of our capital programme, we see a tremendous opportunity to deepen our footprint in Nigeria’s growth sectors and to catalyse meaningful progress for our customers, communities, and the broader economy.”
Sterling HoldCo’s ongoing investments in renewable energy, healthcare, and community development highlight its role as a catalyst for positive change across Nigeria’s critical sectors.
