First HoldCo Plc Grows Earnings to N3.4 Trillion, Profit Declines on Heavier Impairment Charges

First HoldCo Plc has reported stronger topline performance in its unaudited financial results for the 2025 financial year, with gross earnings rising by 4.8 per cent year-on-year to N3.4 trillion.

The company, however, experienced significant decline in it profit for the year due to a massive increase in impairment charges within its commercial banking operations.

According to the unaudited group financial statements filed on the Nigerian Exchange Limited (NGX), the growth in gross earnings was underpinned by a robust expansion in core revenue lines.

Net interest income surged by 36.3 per cent year-on-year to N1.9 trillion, driven by improved asset yields and stronger margins of 17.11 per cent and 11.0 per cent respectively.

Net fees and commission income also recorded solid growth, rising by 18.7 per cent to N290.7 billion, reflecting the Group’s sustained focus on transaction banking and digital channels.

Despite these positive revenue trends, profit for the year fell compared with the previous financial period, largely as a result of higher impairment charges.

The Group explained that the increase was linked to a deliberate strategic decision to accelerate balance sheet clean-up and adopt more conservative provisioning standards following the end of regulatory forbearance.

Management described the approach as a prudent move aimed at strengthening transparency, improving asset quality and aligning fully with evolving regulatory expectations, while reinforcing long-term investor confidence.

Profitability was further pressured by higher regulatory costs, which weighed on the bottom line. The Group noted that these charges, though impactful in the short term, reflect its compliance with Nigeria’s financial system stability framework and its commitment to maintaining confidence in the banking system.

Excluding impairment charges and fair value movements, however, the underlying performance of the business remained strong.

Deposit liabilities grew by 10.0 per cent year-on-year, supported by sustained deposit mobilisation and continued investments in digital banking platforms. The growth points to strong customer confidence and deeper engagement across key market segments.

The deposit mix also improved, with a conscious reduction in foreign-currency deposits following the repayment of high-cost funding and the impact of naira appreciation, enhancing funding efficiency and reducing foreign exchange risk exposure.

Gross loans and advances declined marginally during the year, reflecting a disciplined approach to credit expansion. The Group attributed this to strengthened risk management practices, loan repayments, write-offs and the translation effect of a stronger naira on foreign-currency loans. Management said the focus remains on building a cleaner, higher-quality asset base to support sustainable earnings growth in the future.

Non-interest income came under pressure due to lower fair value gains on financial instruments following the appreciation of the naira in 2025. This decline was partly offset by stronger foreign exchange trading income and reduced FX revaluation losses.

Meanwhile, net fees and commission income benefited from higher electronic banking fees, letters-of-credit commissions, custodian fees and account maintenance charges, underscoring the effectiveness of the Group’s digital innovation strategy.

While impairment charges rose sharply, management said recovery efforts have been intensified alongside tighter credit oversight. Excluding impairment and fair value gains, pre-provision operating profit grew by 23.9 per cent year-on-year to N973.3 billion, highlighting the resilience and earnings strength of the core business.

Performance across the Group’s non-commercial banking subsidiaries remained resilient, supported by steady customer activity and disciplined execution. Looking ahead, First HoldCo said it would continue to prioritise efficiency and profitability, deepen its digital and data capabilities and maintain a strong balance sheet to support long-term value creation.

The Group also signalled plans to pursue selective growth opportunities, including new revenue streams, additional business verticals and deeper participation in targeted African markets, in line with its overall strategy and risk appetite.