Sterling Bank and Sister Subsidiary Finalise Recapitalisation With N153bn Injected by Parent

Sterling Financial Holdings Company Plc has confirmed that its core banking subsidiaries, The Alternative Bank (AltBank) and Sterling Bank, are fully recapitalised in line with the Central Bank of Nigeria’s (CBN) revised minimum capital requirements, following final regulatory approvals received in January 2026. 

The capital-raising programme itself was substantially completed between December 2024 and October 2025, positioning the Group well ahead of the 2026 industry deadline, according to a statement on Monday.

In December 2024, the Group completed a ₦75 billion Private Placement, raising ₦73.86 billion in net proceeds. Of this amount, ₦68.8 billion was allocated to Sterling Bank and ₦5 billion to The Alternative Bank, strengthening the capital base of both institutions. This was followed by a ₦28.79 billion Rights Issue, which was oversubscribed by ₦10.29 billion. Regulatory approvals in May 2025 enabled the allotment of ₦26.639 billion under the Rights Issue, with the oversubscription restructured into a private placement, enabling AltBank to meet the capital requirement for non-interest banks with national licences.

Sterling HoldCo further strengthened its capital position through an ₦88 billion Public Offer in October 2025, which recorded an oversubscription. The CBN has cleared the full amount of ₦96.69 billion for recognition as additional capital, while the Securities and Exchange Commission (SEC) approved the allotment of 13,812,239,000 shares. In total, the Group injected ₦153 billion into Sterling Bank and The Alternative Bank, bringing both institutions into full compliance with the revised capital requirements.

Speaking on the development, Yemi Odubiyi, Group Chief Executive Officer of Sterling Financial Holdings Company Plc, said the recapitalisation strengthens the Group’s ability to support economic activity while maintaining financial resilience. “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 said.

Odubiyi 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,” he said, adding 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 ₦10 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. In its FY’25 interim results, Sterling HoldCo reported a 99% increase in profit before tax, while gross earnings rose 46% year-on-year, driven by growth across both interest and non-interest income streams. Total assets expanded to nearly ₦4 trillion, customer deposits grew by 18%, and shareholders’ funds increased by 39% to ₦424 billion, reflecting sustained profitability and balance-sheet expansion.

Performance was supported by improved operational efficiency, with the cost-to-income ratio declining to 63% from 72% 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.