Sterling Holdings pre-tax profit surges by 97% to N44.753 billion in 2024 

This growth was primarily driven by a 67.09% surge in net interest income, fuelled by higher interest income from loans and advances to customers.

Notably, interest income accounted for 79% of gross earnings, suggesting strong reliance on core lending business.

Key highlights (2024 vs 2023):  

The fact that interest income accounted for 79% of gross earnings with interest income from loans and advances accounting for 68% of the interest income indicates that Sterling Financial is leveraging its lending activities to drive revenue growth.

However, there was a shift in income sources:

This suggests that the bank is increasingly leveraging fixed-income securities as an income source, possibly due to high yields on government securities.

The 39.37% growth in customer deposits to N2.568 trillion reflects a good liquidity position.

While deposit growth is positive, it is important to monitor net interest margins (NIMs) to assess whether the higher cost of funds is eroding profitability.

A sustained increase in funding costs could pressure earnings if not matched by sufficient loan pricing adjustments or higher-yield investments.

The 23% growth in loans and advances to customers suggests that Sterling is expanding its lending activities, which can drive higher interest income and profitability if managed well.

Overall, the combination of strong loan growth and declining impairments is a positive sign for profitability and asset quality

Total expenses rose by 38% YoY to N145 billion, consuming 76% of net operating income after impairments.

This indicates elevated cost pressures, which, if not controlled, could erode profitability despite revenue growth.

Share price performance & investor sentiment:   

After a stellar 206% YtD return in 2023, the stock rose 30.54% in 2024 but has shown slower momentum in early 2025 with a 3.57% return as of January’s close.

After a stellar 206% YtD return in 2023, the stock rose 30.54% in 2024 but has shown slower momentum in early 2025 with a 3.57% return as of January’s close.

Investors should assess whether the growth trend can be sustained amid changing market conditions.