Sterling Bank’s Illusion of Progress: Why Historical Gains Mask a Lacking Strategy
From the face value , Sterling Bank ,going by its 2025 financial year results, has delivered a very outstanding performance. It made remarkable progress in 2025, achieving a more diversified income mix and a strengthened financial position. The bank’s net interest income surged 55% to ₦208.89 billion, driven by effective asset-liability management and a growing customer deposit base, while net fees and commission income rose 31% to ₦44.8 billion and net trading income more than doubled to ₦30.9 billion, reflecting a successful strategy to reduce reliance on traditional interest income. Concurrently, the bank’s balance sheet has become more robust, with total liabilities increasing 8.0% to ₦3.50 trillion, underpinned by an 18.4% growth in customer deposits to ₦2.98 trillion and a shift towards alternative funding sources, as evidenced by a 20.7% rise in other borrowed funds to ₦258.06 billion, positioning Sterling Bank for sustainable growth and value creation.From the face value, the performance of Sterling Bank in the financial year 2025 is nothing but very outstanding. It made remarkable progress in 2025, achieving a more diversified income mix and a strengthened financial position. The bank’s net interest income surged 55% to ₦208.89 billion, driven by effective asset-liability management and a growing customer deposit base, while net fees and commission.
income rose 31% to ₦44.8 billion and net trading income more than doubled to ₦30.9 billion, reflecting a successful strategy to reduce reliance on traditional interest income. Concurrently, the bank’s balance sheet has become more robust, with total liabilities increasing 8.0% to ₦3.50 trillion, underpinned by an 18.4% growth in customer deposits to ₦2.98 trillion and a shift towards alternative funding sources, as evidenced by a 20.7% rise in other borrowed funds to ₦258.06 billion, positioning Sterling Bank for sustainable growth and value creation.
However, to a wiser investor, the above progress, going by the standard by which it is measured , is a ruse . Smart investors dig deeper than just financials when evaluating a company. They’re looking for signs of strategic intent, innovation, and a forward-thinking mindset. What are the company’s high-profile initiatives, and do they align with its overall vision? What’s keeping senior management up at night, and are they measuring progress against meaningful benchmarks? A strong track record of new business creation is a good indicator of adaptability and innovation. But what really sets a company apart is its ability to shape the future – do employees seem energized and focused on creating something new, or are they just going through the motions? For smart investors, these are the factors that separate winners from laggards
Sterling Bank’s year-to-year benchmarking approach is a masterclass in managing expectations, but a lackluster strategy for driving transformation. By prioritizing quarterly or yearly gains over industry insights, the bank is just sacrificing its position as a market leader. As digital disruptors and traditional competitors close in, Sterling Bank’s reliance on incremental gains looks increasingly precarious.
Benchmarking is a crucial tool for organisations to assess their strategic capability and drive performance excellence. While historical benchmarking provides a narrow lens on past performance, industry/sector and best-in-class benchmarking offer a more nuanced understanding of an organisation’s relative standing. Industry/sector benchmarking allows companies to compare their performance with peers, identifying areas for improvement and opportunities to adopt best practices. Best-in-class benchmarking transcends industry boundaries, enabling organisations to learn from top performers across sectors and drive transformative change.
The implications of benchmarking are profound. By looking beyond historical performance and industry norms, organisations can identify opportunities to outperform competitors and redefine industry standards. Best-in-class benchmarking, in particular, encourages a culture of continuous improvement, fostering innovation and driving growth. As industries converge and digital disruptors emerge, companies that adopt robust benchmarking practices will be better equipped to navigate complex landscapes and stay ahead of the competition.
The fact is that Sterling Bank status as an industry laggard is exposed when its performance comes under either industry/sector or best-in-class benchmarking as opposed to historical benchmarking. In the ever-evolving business landscape, companies are faced with a stark reality: adapt or become obsolete. While some organisations thrive, others struggle to stay afloat. The difference between a laggard and a corporate champion lies in their approach to strategy and innovation. Laggards are content with protecting the past, taking industry structure as a given, and focusing on incremental gains. In contrast, champions are driven to create the future, challenging industry norms and pushing the boundaries of innovation.
The key to success lies in developing a prescient and distinctive view of the future, one that is shared across the organisation and informs short-term priorities. This requires a deep understanding of the industry’s trajectory and the ability to shape its evolution. Champions like Sterling Bank, with its diversified income mix and robust balance sheet, demonstrate a commitment to transformation and growth. However, as the article highlights, even seemingly successful companies can be laggards in disguise, relying on historical benchmarking and incremental gains rather than driving transformative change.
So, what separates a laggard from a champion? It comes down to mindset and approach. Champions ask tough questions, such as: What will the industry look like in ten years? How can we set new rules of competition? Are we more intent on challenging the status quo than protecting it? They prioritise innovation, regeneration, and growth, recognising that the future is not a linear extrapolation of the past. Laggards, on the other hand, focus on maintaining the status quo, often relying on outdated strategies and failing to adapt to changing market conditions.
The consequences of being a laggard are severe. As industries converge and digital disruptors emerge, companies that fail to innovate and adapt risk being left behind. Ultimately, the choice is clear: companies must choose to be a champion or a laggard, and the stakes have never been higher.
