Sterling HoldCo Confirms Full Recapitalisation of Sterling Bank, AltBank After CBN Approval

Sterling HoldCo has confirmed full recapitalisation of Sterling Bank and AltBank after CBN approval.

 

NewsOnline Nigeria reports that Sterling Financial Holdings Company Plc has confirmed that its core banking subsidiaries — Sterling Bank and The Alternative Bank — are now fully recapitalised in line with the revised minimum capital requirements set by the Central Bank of Nigeria (CBN), following final regulatory approvals received in January 2026.

 

The Group stated that its capital-raising programme was substantially completed between December 2024 and October 2025, positioning it ahead of the 2026 industry deadline for compliance.

 

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In December 2024, Sterling HoldCo completed a ₦75 billion private placement, raising ₦73.86 billion in net proceeds. Of this amount, ₦68.8 billion was injected into Sterling Bank, while ₦5 billion was allocated to The Alternative Bank to strengthen their capital bases.

 

This was followed by a ₦28.79 billion rights issue, which recorded an oversubscription of ₦10.29 billion. Regulatory approvals in May 2025 enabled the allotment of ₦26.639 billion under the rights issue, while the oversubscription was restructured into a private placement, allowing AltBank to meet capital requirements for non-interest banks with national licences.

 

In October 2025, the Group further bolstered its capital position through an ₦88 billion public offer that was also oversubscribed. The CBN cleared ₦96.69 billion for recognition as additional capital, while the Securities and Exchange Commission approved the allotment of 13.8 billion shares. In total, Sterling HoldCo injected ₦153 billion into both banking subsidiaries, bringing them into full regulatory compliance.

 

Speaking on the development, Group Chief Executive Officer Yemi Odubiyi said the recapitalisation strengthens the Group’s financial resilience and capacity to support economic growth.

 

“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 said.

 

He noted that fully capitalising both subsidiaries reinforces the Group’s dual-bank structure, enabling it to efficiently deploy capital across conventional and non-interest banking segments while responding to evolving customer needs.

 

Sterling HoldCo also disclosed plans to inject ₦10 billion into SterlingFI Wealth Management Limited in line with revised minimum capital requirements for capital market operators issued by the Securities and Exchange Commission in January 2026. The move is expected to support the commencement of full operations and advance the Group’s revenue diversification strategy.

 

The recapitalisation confirmation coincides with strong financial performance. In its FY25 interim results, the Group reported a 99 percent increase in profit before tax and a 46 percent rise in gross earnings year-on-year. Total assets expanded to nearly ₦4 trillion, customer deposits grew by 18 percent, and shareholders’ funds increased by 39 percent to ₦424 billion.

 

Operational efficiency also improved, with the cost-to-income ratio declining to 63 percent from 72 percent in 2024, supported by ongoing investment in digital and operational capabilities across its banking and non-banking businesses.

 

With a strengthened balance sheet and additional capacity for investment, Sterling HoldCo said it is well positioned to pursue strategic expansion, deepen its non-banking operations and accelerate long-term value creation across its portfolio.