By Adeyemi David
Ahead of 2026 deadline, Sterling Financial Holdings Company Plc has announced that its core banking subsidiaries, Sterling Bank and The Alternative Bank, have been fully recapitalised in compliance with revised minimum capital requirements set by the Central Bank of Nigeria (CBN).
The confirmation follows final regulatory approvals received in January 2026, with the company noting that its capital-raising programme was largely completed between December 2024 and October 2025, well ahead of the industry deadline.
The Group began the process with a N75 billion private placement in December 2024, generating N73.86 billion in net proceeds. Of the total, N68.8 billion was allocated to Sterling Bank, while N5 billion went to The Alternative Bank to strengthen their respective capital bases.
This was followed by a N28.79 billion rights issue that was oversubscribed by N10.29 billion.
Regulatory approvals granted in May 2025 enabled the allotment of N26.639 billion, while the excess subscription was restructured into a private placement, allowing The Alternative Bank to meet capital thresholds for non-interest banks with national licences.
Further reinforcing its position, the Group launched an N88 billion public offer in October 2025, which also recorded an oversubscription.
The CBN subsequently approved N96.69 billion for recognition as additional capital, while the Securities and Exchange Commission cleared the allotment of 13.81 billion shares.
Overall, Sterling HoldCo injected N153 billion into its banking subsidiaries, bringing both institutions into full regulatory compliance.
The Group Chief Executive Officer, Yemi Odubiyi, said the recapitalisation enhances the Group’s capacity 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 added that fully capitalising both banks reinforces the Group’s dual-bank structure, enabling efficient deployment of capital across conventional and non-interest markets while improving responsiveness to evolving customer needs.
He noted that strong investor participation across the capital programmes reflects confidence in the Group’s governance and long-term strategy, adding that the strengthened balance sheet provides a solid platform for the next growth phase.
“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.
Beyond banking, the company plans to inject N10 billion into SterlingFI Wealth Management Ltd, its asset management subsidiary, in line with revised minimum capital requirements for capital market operators issued by the SEC in January 2026.
The move is expected to support the commencement of full operations and advance the Group’s revenue diversification strategy.
The recapitalisation announcement comes amid strong financial performance. In its 2025 interim results, Sterling HoldCo reported a 99 percent increase in profit before tax, while gross earnings rose 46 percent year-on-year, driven by growth across both interest and non-interest income streams.
Total assets climbed to nearly N4 trillion, customer deposits increased by 18 percent, and shareholders’ funds grew 39 percent to N424 billion. Operational efficiency also improved, with the cost-to-income ratio declining to 63 percent from 72 percent in 2024.
The company said continued investment in digital and operational capabilities has strengthened earnings resilience, enhanced service delivery, and improved its ability to manage higher transaction volumes while maintaining prudent risk controls.
With a reinforced capital base and additional capacity for investment, Sterling HoldCo said it is well positioned to pursue strategic expansion, deepen non-banking operations, and accelerate its revenue diversification agenda.
