Sterling Bank Plc posted a 74.7% increase in full-year 2025 profit after tax to ₦76.33 billion, even as the board withheld a dividend for the year after credit loss expenses more than tripled.
Gross earnings rose to ₦486.79 billion from ₦337 billion in 2024, supported by stronger operating performance across core banking lines. The lender’s non-performing loans ratio improved to 4.7% from 5.4%, suggesting some progress in asset quality despite a tougher credit environment.
Cost of Risk
Credit loss expense climbed 205% to ₦32.99 billion from ₦10.78 billion, highlighting the cost of absorbing credit stress in a high-rate, inflationary economy. That increase appears to have weighed on distributable profits, prompting directors not to recommend a dividend, compared with 18 kobo per share in the prior year.
The result points to a bank that is growing revenue and cleaning up risk, but still preserving capital rather than returning cash to shareholders. For investors, the message is that earnings momentum is real, but payout capacity remains constrained by provisioning needs.
Balance Sheet Signal
The improvement in the NPL ratio is a positive sign for loan book quality, especially in a market where higher borrowing costs can pressure borrowers. Still, the sharp rise in impairment charges suggests management remains cautious about the durability of the recovery.
Sterling’s 2025 numbers place it among lenders benefiting from stronger topline growth, but its no-dividend stance signals that the path from profit growth to shareholder returns is still uneven.
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