Sterling Bank, AltBank Meet Full Recapitalisation After N153bn Injection

By Modupe Gbadeyanka

The banking subsidiaries of Sterling Financial Holdings Company Plc, Sterling Bank and The Alternative Bank (AltBank), have met the full recapitalisation requirements of the Central Bank of Nigeria (CBN).

The chief executive of Sterling Holdings, Mr Yemi Odubiyi, said the recapitalisation strengthens the group’s ability to support economic activity while maintaining financial resilience.

“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,” he said.

Mr Odubiyi noted that fully capitalising both Sterling Bank and The Alternative Bank reinforces the organisation’s dual-bank structure and its ability to serve conventional and non-interest segments.

“Our structure enables efficient deployment of capital across complementary markets and positions us to respond with agility to evolving customer needs,” he said, adding that strong investor participation across the capital programmes reflects confidence in the group’s governance and long-term strategy.

He further pointed out that the strengthened balance sheet provides a platform for the company’s next phase of growth.

“We are entering this phase from a position of significant financial strength, with the capacity to scale non-banking businesses, deepen digital capabilities, and pursue disciplined expansion opportunities while delivering sustainable value for shareholders,” Mr Odubiyi said.

Sterling Holdings achieved this feat after raising fresh capital between December 2024 and October 2025, positioning itself well ahead of the 2026 industry deadline.

In December 2024, it completed a N75 billion private placement, raising N73.86 billion in net proceeds. Of this amount, N68.8 billion was allocated to Sterling Bank and N5 billion to The Alternative Bank, strengthening the capital base of both institutions.

This was followed by a N28.79 billion rights issue, which was oversubscribed by N10.29 billion. Regulatory approvals in May 2025 enabled the allotment of N26.639 billion under the rights issue, with the oversubscription restructured into a private placement, enabling AltBank to meet the capital requirement for non-interest banks with national licences.

Sterling HoldCo further strengthened its capital position through an N88 billion public offer in October 2025, which recorded an oversubscription. The CBN has cleared the full amount of N96.69 billion for recognition as additional capital, while the Securities and Exchange Commission (SEC) approved the allotment of 13,812,239,000 shares.

In total, the group injected N153 billion into Sterling Bank and The Alternative Bank, bringing both institutions into full compliance with the revised capital requirements.