Sterling Financial Holdings Company Plc (Sterling HoldCo) has confirmed the successful completion of the recapitalisation of its two principal banking subsidiaries, Sterling Bank and The Alternative Bank (AltBank), in line with the Central Bank of Nigeria’s revised minimum capital requirements.
The development was affirmed after the group secured final regulatory approvals from the Central Bank of Nigeria in January 2026, placing it comfortably ahead of the industry-wide deadline set for March 2026.
The recapitalisation programme involved the injection of N153 billion into the two banks and was carried out through multiple capital-raising exercises conducted between December 2024 and October 2025.
These fundraising efforts comprised a N75 billion private placement that yielded net proceeds of N73.86 billion, with N68.8 billion allocated to Sterling Bank and N5 billion to AltBank.
In addition, the group completed a N28.79 billion rights issue that was oversubscribed by N10.29 billion, as well as an N88 billion public offer that attracted strong investor interest and was similarly oversubscribed.
Regulatory approvals were instrumental in finalising the capital raise.
In May 2025, approvals were granted for the allotment of N26.639 billion from the rights issue, while excess subscriptions were converted into a private placement to enable AltBank meet compliance requirements as a nationally authorised non-interest bank.
Subsequently, the Central Bank of Nigeria recognised N96.69 billion as additional capital raised from the public offer, and the Securities and Exchange Commission approved the allotment of 13.81 billion shares.
Group Chief Executive Officer Yemi Odubiyi described the milestone as more than a regulatory obligation.
“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 in a statement.
Odubiyi noted that the capital boost strengthens Sterling HoldCo’s dual-bank structure, which enables it to efficiently serve both conventional banking customers through Sterling Bank and non-interest clients through AltBank.
He attributed the strong participation across the capital programmes to investor confidence in the group’s governance framework and long-term strategy.
With its balance sheet strengthened, the group plans to scale its non-banking subsidiaries, deepen digital transformation, and pursue sustainable growth initiatives.
The recapitalisation exercise aligns with the Central Bank of Nigeria’s March 2024 directive, which increased minimum capital thresholds to reinforce the resilience of the banking sector.
Under the revised framework, national commercial banks such as Sterling Bank are required to maintain a minimum capital base of N200 billion, while national non-interest banks like AltBank must meet a N20 billion threshold.
Sterling HoldCo’s early completion positions it among the first movers in Nigeria’s ongoing recapitalisation drive, during which more than 20 banks have either met or are progressing toward the new capital benchmarks.
Beyond its core banking operations, Sterling HoldCo intends to inject N10 billion into its asset management subsidiary, SterlingFI Wealth Management Ltd, to comply with the Securities and Exchange Commission’s revised minimum capital requirements for capital market operators issued in January 2026.
This planned capital infusion will support the subsidiary’s full operational rollout and advance the group’s strategy to diversify revenue streams.
The announcement comes alongside strong financial results for the year ended December 31, 2025.
Sterling HoldCo recorded a 98.3 per cent increase in profit before tax to N90.73 billion, while gross earnings rose by 46 per cent to N476.50 billion.
Net interest income climbed 55 per cent to N208.89 billion, supported by improved yields, stronger non-interest income, and better asset quality.
Total assets approached N4 trillion, customer deposits grew by 18 per cent, and shareholders’ funds expanded by 39 per cent to N424 billion.
The group also improved its cost-to-income ratio to 63 per cent from 72 per cent in 2024.
Market analysts consider the recapitalisation a solid platform for long-term expansion despite prevailing macroeconomic pressures in Nigeria.
They note that the strengthened capital base will enable increased lending to small and medium-sized enterprises, support infrastructure financing, and expand ethical banking services through AltBank.
Sterling HoldCo’s early compliance highlights strong investor confidence and operational strength, positioning the group to play a greater role in driving economic growth.
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