Sterling Financial Holdings Company Plc and its subsidiaries recorded a profit of N16.34bn in the fourth quarter of 2025, representing a 23.8 per cent decline from the N21.44bn posted in Q4 2024, according to its unaudited interim financial statements for the period ending 31 December 2025.
The drop in quarterly profit was primarily driven by higher credit loss expenses and rising operating costs, despite growth in interest and trading income.
The group’s interest income for Q4 rose by 53.8 per cent to N107.14bn, up from N69.66bn in the same quarter of 2024, while interest expense increased by 48.4 per cent to N41.29bn, narrowing net interest gains. Consequently, net interest income grew by 57.4 per cent to N65.85bn, compared with N41.84bn in Q4 2024.
However, the gain was offset by a sharp rise in credit loss expenses on financial assets, which surged to N18.67bn from N3.62bn in Q4 2024, a 415 per cent increase year-on-year.
This significantly weighed on the group’s overall profitability for the quarter.
Other operating expenses, personnel costs, and administrative expenses collectively rose to N55.15bn in Q4 2025 from N36.56bn in Q4 2024, representing a 50.8 per cent increase, further compressing margins.
Despite these pressures, Sterling Financial Holdings remained profitable for the quarter, with earnings per share of 157 kobo, up from 151 kobo in the same period last year, reflecting strong contributions from other operating and trading income streams.
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.
Contact: [email protected]
