Sterling Bank raises salaries again amid intense talent war in banking sector

• Published On: 26 February 2025 at 17:16

Sterling Bank has increased salaries for its over 3,000 employees. Entry-level executive trainees now earn a net monthly salary of ₦528,000, up from ₦320,000.

This represents a pay increase of more than 35% across multiple roles, following a minor 7% salary adjustment in January that left many employees dissatisfied.

The move comes as Nigeria's banking sector faces an intensifying battle for talent.

In recent months, several banks, including GTBank, Union Bank, and Wema Bank, have raised salaries in an effort to retain employees as competition heats up both within the industry and from fast-growing fintech companies.

Three senior banking executives, speaking anonymously, revealed that top fintech firms are aggressively poaching senior bank employees, frequently offering salaries nearly double what traditional banks pay. At the same time, a slew of young professionals is leaving for better opportunities elsewhere, further limiting the talent pool.

Despite being well-known for its banking operations, Sterling has been diversifying into fintech, asset financing, and even electric vehicles — a bold strategy. Retaining top talent is viewed as critical to moving this larger vision forward.

The bank's flagship banking business, its largest subsidiary, reported ₦221 billion in gross earnings in 2023 and is projecting ₦337 billion in 2024. However, it continues to lag behind competitors such as Wema Bank, which, despite having similar asset and deposit sizes, generates nearly twice as much revenue.

Executive Trainees, the bank's entry-level employees, will now earn a net monthly salary of ₦528,000, up from ₦320,000 previously. This 35% increase reflects Sterling Bank's commitment to attracting and retaining young talent at the start of their careers.

For more experienced employees, the increases are even more pronounced. Assistant Banking Officers will now earn ₦850,000 monthly, while Banking Officers' salaries will increase from ₦700,000 to ₦1,030,000. The bank's Senior Banking Officers now earn ₦1.1 million per month. Assistant Managers will now earn up to ₦1.3 million per month, according to the review.

Sterling's leadership appears determined to retain key talent, seeing the pay increase as both a response to industry pressures and a statement of long-term ambition.

It remains to be seen whether these salary increases will be sufficient to deter fintech competitors from poaching young professionals and stem the tide of emigration.