Sterling Holdings posts ₦97.3B pre-tax profit in 9 months, but EPS falls on share reconstruction
Sterling Financial Holdings reported a 37% jump in pre-tax profit to ₦97.28 billion for the nine months ended September 30, 2026, driven by a 33% surge in gross earnings to ₦454.94 billion. Interest income led the growth, rising 35% to ₦353.78 billion on the back of expanded lending — loans to customers grew 29% to ₦1.82 trillion. Net interest income jumped 44% to ₦205.9 billion.
However, basic earnings per share fell 11% to ₦11.35 from ₦12.82, both restated for the group's share reconstruction. The EPS decline came despite profit after tax growing 21% to ₦75.37 billion. Credit impairment charges surged fivefold to ₦40.28 billion from ₦8.09 billion a year earlier, with Q3 alone hitting ₦16.43 billion — a signal that loan book risks are rising alongside growth.
The balance sheet expanded 30% to ₦5.10 trillion in total assets, funded by customer deposits which grew 29% to ₦3.84 trillion. Deposits remain more than double the loan portfolio. Non-performing loans improved slightly to 4.6% from 4.7% in December 2025. Total equity rose 39% to ₦595.16 billion, boosted by retained earnings and public offer proceeds.
Investors responded positively: the stock gained 1.32% to close at ₦77.00 on October 28, with volume jumping nearly 8x to 3.8 million shares after results were approved on October 27.
With credit costs rising fast and EPS diluted by reconstruction, will the lending momentum sustain profitability, or are impairment charges the start of a deeper asset quality cycle?