Net Interest Income Surge Helps Sterling Financial Overcome 276% Spike In Credit Loss In Q1

May 26, 2026

Sterling Financial Holdings Company Plc recorded N134.81 billion gross earnings in the first quarter (Q1) of 2026, surpassing the N95.23 billion posted in Q1 2025, representing a 41.56 percent increase.

The company, in its Q1 2026 financial statement, reported that interest income contributed N106.26 billion to its earnings during the period under review, compared to the N78.35 billion posted in Q1 last year.

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While interest income grew by 35.61 percent, interest expenses increased by 33.85 percent to N41.40 billion in Q1 2026, exceeding the N30.93 billion recorded in the same period the year before.

This left Sterling Financial with N64.85 billion as net interest income for the first quarter of this year, compared to the N47.42 billion recorded in Q1 2025, indicating an increase of 36.76 percent.

Also, net fees and commission income grew by 32.35 percent year-on-year, from N10.12 billion to N13.40 billion, while net trading income increased by 16.14 percent during the same period, from N2.89 billion to N3.36 billion.

Meanwhile, operating income rose to N93.41 billion in Q1 2026, according to the company’s financials, which reported that the segment was N63.30 billion in the Q1 2025, reflecting a 45.26 percent growth.

However, Sterling Financial suffered N9.2 billion credit loss expense on financial assets in Q1 this year, which is 276.16 percent higher when compared to the N2.44 billion posted in the corresponding period in 2025.

The company further disclosed that net operating income after impairment grew by 36.13 percent to N84.21 billion during the period under review, compared to the N61.85 billion recorded in the first quarter of last year.

In addition, total expenses gulped N56.29 billion of Sterling Financial’s earnings in Q1 2026, exceeding the N43.59 billion incurred in the same period in 2025, representing a 29.13 percent increase.

The financial also showed that Sterling Financial’s profit before tax (PBT) climbed to N27.91 billion in the first quarter of this year, exceeding the N18.26 billion earned in the corresponding period in 2025 by 52.84 percent

Sterling Financial incurred N4.53 billion as tax income during the period under review, up by 338.91 percent when compared to the N1.03 billion recorded as tax expense in the first quarter of 2026.

Following the tax deduction, Sterling Financial reported N23.38 billion as profit after tax (PAT) in Q1 2026, surpassing the N17.23 billion recorded in Q1 2025, up by 35.69 percent.

Meanwhile, trading and interest income raised Sterling Financial’s profit up by 89 percent in full year of 2025.

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Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.

Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.

He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.

Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.

Prime Business Africa

Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.

Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.

He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.

Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.

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