First HoldCo Grows Gross Earnings to N3.4trn Despite Higher Impairment Charges in 2025

First HoldCo Grows Gross Earnings to N3.4trn Despite Higher Impairment Charges in 2025

First HoldCo Plc has released its unaudited financial results for the year ended December 31, 2025, reporting a 4.8 per cent year-on-year increase in gross earnings to N3.4 trillion, despite recording higher impairment charges as part of a strategic balance sheet clean-up.

According to the Group’s unaudited financial statement, the growth in gross earnings was driven by a strong 36.3 per cent year-on-year increase in net interest income, which rose to N1.9 trillion. The performance was supported by improved earnings yield and margins of 17.11 per cent and 11.0 per cent respectively. Net fees and commission income also grew by 18.7 per cent to N290.7 billion, underscoring the strength of the Group’s core revenue-generating activities.

However, profit for the year declined compared to the previous year, largely due to significantly higher impairment charges in the commercial banking segment. The Group explained that this followed a deliberate strategic decision to accelerate balance sheet clean-up through more conservative provisioning, in line with evolving regulatory expectations. Management described the move as a prudent step to enhance transparency, strengthen investor confidence and improve long-term asset quality.

Profitability was further impacted by increased regulatory costs, reflecting the Group’s compliance with Nigeria’s financial system stability framework. Despite these pressures, First HoldCo noted that the underlying performance of its core business remained resilient.

Deposit liabilities increased by 10.0 per cent year-on-year, driven by sustained deposit mobilisation and continued investments in digital banking platforms. The Group also recorded a deliberate reduction in foreign currency deposits following the repayment of expensive funding and the impact of naira appreciation, a move aimed at improving funding efficiency and reducing foreign exchange risk.

Gross loans and advances declined marginally during the year, reflecting a disciplined approach to credit growth, improved risk management, loan repayments, write-offs and the translation impact of a stronger naira on foreign currency facilities. The Group said this aligns with its focus on maintaining a cleaner, higher-quality loan portfolio to support sustainable earnings growth.

Non-interest income declined during the period, mainly due to lower fair value gains on financial instruments following the naira appreciation in 2025. This was partly offset by stronger foreign exchange trading income, reduced FX revaluation losses, and growth in net fees and commission income, supported by higher electronic banking fees, letters of credit commissions, custodian fees and account maintenance income.

Excluding impairment charges and fair value gains, pre-provision operating profit grew by 23.9 per cent year-on-year to N973.3 billion, highlighting the robustness of the Group’s core operations. Performance across non-commercial banking subsidiaries remained resilient, supported by steady customer activity and disciplined execution.

Looking ahead, First HoldCo said it will continue to prioritise disciplined execution of its strategic objectives, with a focus on improving efficiency and profitability, strengthening digital and data capabilities, and maintaining a robust balance sheet to drive shareholder value. The Group also plans to pursue selective growth opportunities, including new revenue streams, additional business verticals and deeper participation in targeted African markets.

The Group noted that further details will be provided upon the release of its audited full-year results and during its investor and analyst earnings call.