Sterling HoldCo completes recapitalisation of Sterling Bank, Alternative Bank

STERLING Financial Holdings Company Plc has announced the successful recapitalisation of its two core banking subsidiaries – Sterling Bank and The Alternative Bank (AltBank) – after receiving final regulatory approvals in January 2026. The development brings both institutions into full alignment with the Central Bank of Nigeria (CBN)’s revised minimum capital thresholds, well ahead of the industry’s 2026 deadline.

The group’s capital-raising drive, which ran between December 2024 and October 2025, culminated in a total equity injection of N153 billion into the two banks. This comprehensive funding programme has now positioned the subsidiaries to operate with stronger buffers and enhanced growth capacity under the new regulatory framework.

A major boost came in December 2024, when Sterling HoldCo concluded a N75 billion private placement that yielded N73.86 billion in net proceeds. From this amount, N68.8 billion was channelled to Sterling Bank, while N5 billion was directed to Alternative Bank to reinforce their capital positions.

Further strengthening followed through a N28.79 billion rights issue, which exceeded expectations and attracted an oversubscription of N10.29 billion. After receiving regulatory clearance in May 2025, the company allotted N26.639 billion, while the excess demand was converted into a private placement, enabling Alternative Bank to satisfy the capital benchmark for non-interest banks operating with national licences.

READ ALSO: FCMB, Sterling, Alternative, Lotus, Keystone yet to meet CBN recapitalisation requirements

The recapitalisation process reached its final phase in October 2025 with an N88 billion public offer that also recorded strong investor demand. Regulators approved N96.69 billion from this exercise as additional capital, and the Securities and Exchange Commission (SEC) authorised the allotment of 13.81 billion new shares.

With its capital base now reinforced, Sterling HoldCo says it is strategically positioned to pursue expansion initiatives, deepen non-banking operations, and accelerate its revenue diversification across multiple business lines.

Commenting on the milestone, Group Chief Executive Officer, mR Yemi Odubiyi, described the recapitalisation as a strategic step that extends beyond regulatory compliance. He said the strengthened balance sheet will enable the Group to expand lending responsibly, foster innovation, and provide sustained support to businesses and households, even in a challenging operating climate.

Mr Odubiyi also noted that fully capitalising both Sterling Bank and Alterrnative Bank strengthens the Group’s dual-bank model, allowing it to serve both conventional and non-interest segments efficiently. According to him, the strong participation recorded across all the capital-raising exercises reflects investor confidence in the Group’s governance, resilience, and long-term vision.

He added that the recapitalisation creates a strong platform for the next phase of growth. The Group, he said, now has the financial capacity to scale its non-banking businesses, deepen digital capabilities, and pursue disciplined expansion while delivering sustainable value to shareholders.

Beyond the banking subsidiaries, Sterling HoldCo has also announced plans to inject N10 billion into SterlingFI Wealth Management Limited, its asset management arm. This move aligns with the Securities and Exchange Commission’s revised minimum capital requirements for capital market operators issued in January 2026 and will support the firm’s full operational rollout as part of the Group’s diversification strategy.

READ ALSO: NGX lists 3.156bn UBA shares to deepen liquidity, market capitalisation

The confirmation of full recapitalisation comes at a time of robust financial performance. In its full-year 2025 interim results, Sterling HoldCo reported a 99 percent surge in profit before tax, while gross earnings climbed by 46 percent year-on-year, driven by growth in both interest and non-interest income. Total assets approached N4 trillion, customer deposits increased by 18 percent, and shareholders’ funds rose by 39 per cent to N424 billion.

Operational efficiency also improved, with the cost-to-income ratio falling to 63 percent from 72 percent in 2024. Continued investments in digital platforms and process optimisation across the group’s banking and non-banking businesses have enhanced service delivery, strengthened earnings resilience, and improved the capacity to manage higher transaction volumes under a prudent risk framework.