WorldStage– Sterling Financial Holdings Company Plc, which NGX designated ‘awaiting regulatory approval” in April, released its 2025 audited financial statement May 15, revealing over two-thirds of its asset belong to creditors, an indication of high risk with debt.
With its contingent liabilities added, the company could have recorded its debt overwhelming its asset at the year end.
According to its statement of financial position, Sterling grew its asset 11.4 percent to N3.9 trillion, from N3.5 trillion in 2024. Its total liability also increased 9.4 percent to N3.5 trillion, from N3.2 trillion the year before. That brought the debt-asset ratio to 0.89 (89 percent) for the year, from 0.91 (91 percent) the year before. The industry average is between 0.30 and 0.60
The debt overhang also weighed down on shareholders’ equity. Their stake rose by more than half to N479 billion, from N305 billion in 2024. But the liability proportion to the equity remained high, despite recording 8.2 last year, from 10.5 the year before.
Off-balance-sheet, Sterling took more risk and piled up more debts. Its contingent liabilities stood at N612 billion as 2025 ending, from guarantees and indemnities, letters of credit, and performance bonds. The amount represented a 73 percent spike from N352 billion the year before.
The unrecorded liabilities—though Sterling noted the customers have not defaulted—jacked up its total debt to N4.1 trillion. It ate 5.1 percent deep into the N3.9 trillion asset, and increased more than seven times the equity, as of 2025 year end.
Now at risk is the ability to meet long-term obligations.
The company already got an approval in February for a private placement of 2.6 billion ordinary share at N4 per share.
On the other hand, GCR Ratings gave the company’s major subsidiary, Sterling Bank Nigeria Ltd, a long-term national scale rating of BBB+ (NG) with a stable outlook, indicating both liquidity and vulnerability. The rating might be due largely to its cash and cash equivalents which stood at N515 billion as of December ending, from N660 billion the year before
