Sterling Financial Holdings Company Plc has confirmed that its banking subsidiaries, The Alternative Bank (AltBank) and Sterling Bank, are now fully recapitalised, meeting the Central Bank of Nigeria’s (CBN) revised minimum capital requirements, following final regulatory approvals in January 2026.
The Group’s recapitalisation programme, largely executed between December 2024 and October 2025, positions Sterling Financial Holdings well ahead of the 2026 industry deadline. The initiative included:
- A N75 billion private placement in December 2024, raising N73.86 billion (N68.8 billion for Sterling Bank and N5 billion for AltBank).
- A N28.79 billion rights issue, oversubscribed by N10.29 billion, enabling AltBank to meet non-interest bank capital requirements.
- An N88 billion public offer in October 2025, also oversubscribed and fully recognised by the CBN, with the Securities and Exchange Commission (SEC) approving the allotment of 13.81 billion shares.
In total, N153 billion was injected into both banks, ensuring full regulatory compliance.
Commenting on the milestone, Yemi Odubiyi, Group CEO, said: “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.”
Odubiyi noted that the dual-bank model allows efficient deployment of capital across conventional and non-interest segments, enhancing the Group’s agility in meeting customer needs. Strong investor participation, he said, reflects confidence in Sterling Financial Holdings’ governance and long-term strategy.
The recapitalisation also sets the stage for the Group’s next growth phase, including a planned N10 billion capital injection into SterlingFI Wealth Management Limited to meet SEC requirements and support revenue diversification.
The announcement comes on the back of a strong FY’25 performance:
- Profit before tax nearly doubled
- Gross earnings rose 46%
- Total assets approached N4 trillion
- Customer deposits grew 18%
- Shareholders’ funds hit N424 billion, a 39% increase
- Cost-to-income ratio improved from 72% to 63%
With a strengthened balance sheet, Sterling Financial Holdings is now well-positioned to pursue strategic expansion, deepen non-banking operations, and accelerate its revenue diversification agenda.
