Sterling Financial Holdings Company Plc (Sterling HoldCo) expected its strong growth momentum to continue into the fourth quarter, with gross earnings projected at N149.3 billion within the last three months of the year.

Earnings forecast filed at the Nigerian Exchange yesterday indicated that the group would close the year ending December 31, 2024 with substantial growths in key performance indicators.

Sterling HoldCo included Sterling Bank Limited, The Alternative Bank Limited and SterlingFI Wealth Management among others.

Sterling HoldCo expected gross earnings of N149.27 billion, with interest income driving the top-line at N116.73 billion. Interest expense was projected at N42.88 billion, resulting in net revenue from funds of N73.85 billion.

The group also anticipated credit impairment charges of N16.84 billion, with other income projected at N28.37 billion, bringing expected net operating income to N85.37 billion.

With operating expenses estimated at N67.24 billion, pre-tax profit was projected at N18.13 billion. After accounting for a projected tax of N1.88 billion, profit after tax was estimated at N16.25 billion for the quarter.

Besides, Sterling’s cash flow outlook underscored the strength of the group’s balance sheet. The group projected N13.56 billion in net cash generated from operating activities, alongside N266.16 billion in financing inflows and N187.93 billion in investing activities. There were expected to deliver a net increase of N91.79 billion in cash and cash equivalents, with the cash and bank balance closing at N549.90 billion by year-end, compared to N458.11 billion at the start of the quarter.

The fourth quarter forecast strengthened Sterling HoldCo’s earnings outlook, after the group recorded significant growths in the first half.

Key extracts of the interim report and accounts of Sterling HoldCo for the half-year ended June 30, 2025 had shown significant growths across key performance indices. Gross earnings had risen by 39.7 per cent to N212.61 billion in first half 2025 as against N152.20 billion in first half 2024. Interest income had risen by 38.3 per cent to N167.16 billion while non-interest income had increased by 45 per cent to N45.45 billion, underlining the groups’ strategic focus on revenue diversification.

Net profit after tax grew by 157 per cent from N16.26 billion in first half 2024 to N41.78 billion in first half 2025. Earnings per share rose significantly to 89 Kobo in first half 2025 from 56 Kobo, reflecting a consistent increment in value to shareholders. The report showed that group’s cost-to-income ratio improved to 64.5 per cent from 75.7 per cent, underscoring the benefits of ongoing cost optimisation measures.

The group’s balance sheet also expanded with total assets rising from N3.54 trillion in December 2024 to N4.08 trillion by June 2025, representing an increase of 15.3 per cent. Shareholders’ funds also rose by 22.9 per cent, underscoring the recent recapitalisation and substantial retained earnings. Asset quality also improved, with the non-performing loan ratio declining to 5.1 per cent by June 2025 as against 5.4 per cent by the close of the 2024 financial year.

The fourth quarter projections underlined Sterling HoldCo’s disciplined focus on cost management, diversified income streams, and prudent balance sheet growth.

The management of the bank said the outlook highlighted the group’s capacity to channel its financial strength into broader impact.

Sterling HoldCo stated that it has been positioned to support key growth sectors of the Nigerian economy, invest in innovation, and continue creating value for shareholders, customers, and communities.

The group noted that its ability to generate strong operating cashflows while maintaining significant liquidity positions provides a foundation for resilience.

According to the management, the underlying strength of the group ensures that it is not only positioned to deliver value to its shareholders but also equipped to deepen its participation in Nigeria’s growth sectors, drive innovation, and support broader economic progress.