Sterling Bank Group has announced a strong performance for the first quarter ended March 31, 2025 with profit before tax rising by 125.2% to ₦18.26 billion, compared to ₦8.11 billion reported in Q1 2024.
The performance was driven by improved gross earnings and enhanced operational efficiency.
Group Financial Highlights
Gross earnings for the Group increased by 34.1% to ₦95.24 billion from ₦71.02 billion recorded in the same period last year. Profit after tax more than doubled to ₦17.23 billion from ₦7.50 billion recorded in Q1 2024.
The Group made a ₦3.75 billion transfer to statutory reserves during the period while ₦13.48 billion was retained in general reserves, strengthening its capital position for the year ahead.
Earnings per share for the Group improved to 38 kobo (basic and diluted), up from 26 kobo recorded in the corresponding period of 2024.
Standalone Performance
On a company-level basis, Sterling Bank posted ₦1.29 billion in gross earnings, up from ₦376 million in Q1 2024.
Profit before tax rose to ₦377 million, compared to ₦49 million in the prior-year period. Profit after tax stood at ₦314 million, while earnings per share remained modest at 1 kobo.
Asset Quality
Sterling Bank’s non-performing loan (NPL) ratio stood at 5.5% as of March 2025, up slightly from 5.4% reported in December 2024.
The marginal increase signals that close monitoring is required to contain credit risk, though the ratio remains within acceptable regulatory thresholds.
Outlook
The strong first-quarter performance positions Sterling Bank for a potentially solid year as the effectiveness of its operational reforms and earnings diversification strategy takes effect.
However, the uptick in NPL ratio suggests the need for strengthened risk management amid a challenging macroeconomic environment.
Investors will be watching subsequent quarters closely to assess the sustainability of earnings momentum and the Bank’s ability to drive further growth while maintaining asset quality.
