Sterling Bank Plc has magnified its core profit, driven by a higher interest rate even amid the central bank’s tightening policy.
The bank’s net interest income (NII), the difference between what it earns on loans and pay out for deposits, increased by 36.75 percent to N64.85 billion in the first three months of 2026, from N47.42 billion as at March 2025.
Interest income and similar charges was up 35.62 percent to N106.26 billion in the period under review from N78.35 billion the previous year.
Sterling Bank benefited from aggressive hikes in the monetary policy rate by the central bank from June 2023 up till the end of 2025 when there was an ease in inflationary pressures.
However, there are growing concerns that the regulators’ gradual adoption of a dovish stance as evidenced in rate cuts in 2026 could lead to a reduction in interest income from investment securities.
The Central Bank of Nigeria (CBN) reduced its benchmark Monetary Policy Rate to 26.50 percent. This rate cut—down from 27.0 percent was implemented to ease monetary conditions and support economic growth as inflation continues to moderate.
Further analysis of Sterling Bank’s financial statement shows profit after tax (PAT) spiked by 35.69 percent to N23.38 billion in March 2026 from N17.23 billion as at March 2025.
It is noteworthy that the war in the Middle East and uncertainty surrounding the price of crude oil are fanning the flames of inflation as the price of fuel at the pump has risen as well as the cost of urea which is a raw material component for fertiliser.
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