Sterling Bank posted a pre-tax profit of N55.53 billion for the first half of 2026, up 21.92 per cent from N45.55 billion recorded in the corresponding period of 2025.

In the second quarter, the bank reported a pre-tax profit of N27.62 billion, representing a marginal 1.07 per cent decline from N27.92 billion in the first quarter of 2026.

However, the figure was 1.22 per cent higher than the N27.28 billion posted in the second quarter of 2025.

The bank’s half-year performance was driven by strong growth in net interest income and other operating income.

However, second-quarter earnings came under pressure as higher impairment charges, increased operating expenses, and weaker trading income offset much of the gains in operating income.

Sterling Bank’s half-year performance was largely driven by stronger interest earnings. Interest income rose 33.75 per cent to N223.58 billion, with loans and advances to customers contributing N153.64 billion, or 68.72 per cent of the total, reaffirming lending as the bank’s primary source of revenue.

Income from debt instruments measured at fair value through other comprehensive income increased 36.05 per cent to N37.83 billion, while interest earned on cash and cash equivalents climbed 54.25 per cent to N21.00 billion.

The growth in interest earnings lifted net interest income by 41.04 per cent to N137.39 billion during the period.

Funding costs also increased, with interest expense rising 23.57 per cent year-on-year to N86.18 billion.

Interest paid on customer deposits remained the bank’s largest funding cost, increasing to N59.34 billion as deposit liabilities continued to account for the bulk of its funding base.

Returns paid to investment account holders more than doubled to N12.84 billion, reflecting higher payouts to attract and retain customer funds.

Non-interest income delivered a mixed performance. Net fees and commission income rose 21.77 per cent to N26.87 billion, driven by growth in facility management fees, account maintenance charges, and electronic banking commissions.

However, net trading income declined 46.49 per cent to N6.96 billion, weighed down by weaker bond income and a foreign exchange revaluation loss of N4.23 billion, compared with a revaluation gain of N775 million recorded in the corresponding period of 2025.

On the balance sheet, customer loans increased 13.75 per cent to N1.61 trillion, while customer deposits rose to N3.62 trillion, accounting for about 77.5 per cent of total assets.

The figures underscore the bank’s strong deposit-funded balance sheet, with customer deposits covering its loan portfolio by more than two times.

However, the 23.57 per cent rise in interest expense indicates that maintaining this funding base came at a higher cost.