By Kazeem Ugbodaga
First HoldCo Plc has announced a 6.9 per cent increase in gross earnings to ₦3.4 trillion for the financial year ended December 31, 2025, despite a sharp decline in profit driven by rising impairment charges and operating costs.
The Group disclosed this in its audited 2025 financial results released on Thursday, showing gross earnings rose from ₦3.21 trillion in 2024 to ₦3.44 trillion in 2025.
Interest income climbed significantly by 24.9 per cent to ₦2.99 trillion, while net interest income surged by 36.8 per cent to ₦1.92 trillion.
However, profit before tax dropped sharply by 70.5 per cent to ₦235 billion from ₦796.5 billion recorded in the previous year, while profit after tax fell by 79.4 per cent to ₦139.5 billion.
The financial institution attributed the decline largely to a 93.8 per cent rise in impairment charges for losses, which increased to ₦826.3 billion from ₦426.3 billion in 2024, alongside elevated operating expenses caused by inflationary and foreign exchange pressures.
Commenting on the performance, Group Managing Director, Wale Oyedeji, described 2025 as a defining year for the company, marked by disciplined execution, resilient core earnings and strategic balance sheet restructuring aimed at sustainable growth.
According to him, the Group undertook comprehensive de-risking measures by making adequate provisions for impaired and non-performing exposures, particularly following changes in the post-forbearance regulatory landscape.
Oyedeji said the move was designed to strengthen transparency, improve asset quality and position the Group for stronger long-term growth and earnings stability.
He also disclosed that the Group had intensified capital-raising efforts to ensure First Bank of Nigeria Limited meets the ₦500 billion minimum regulatory capital requirement.
Under its ongoing ₦350 billion capital raise programme, the company has already secured ₦128.7 billion and remains on track to strengthen its capital base further.
The report showed that total assets rose by 2.7 per cent to ₦27.3 trillion, while customer deposits increased by 10 per cent to ₦18.9 trillion, reflecting continued customer confidence in the Group. Customer loans and advances also grew modestly by 2.3 per cent to ₦9 trillion.
Despite the challenging operating environment, FirstHoldCo recorded growth in key banking operations, with net fees and commission income increasing by 20.2 per cent to ₦294.5 billion, supported by stronger digital transaction volumes, transfer fees and trade-related commissions.
The Group’s non-performing loan ratio rose to 12 per cent from 10.2 per cent in 2024, mainly due to increased exposures within the oil and gas sector. However, its NPL coverage ratio improved significantly to 98.7 per cent from 54.8 per cent, indicating stronger provisioning and balance sheet resilience.
Operating expenses climbed by 32.1 per cent to ₦1.23 trillion, driven by rising personnel costs, regulatory charges, administrative expenses and increased investment in brand visibility and customer engagement initiatives.
FirstHoldCo stated that it would continue focusing on improving earnings quality, strengthening capital and asset quality, enhancing efficiency and expanding its non-banking businesses.
The Group also reaffirmed its commitment to delivering sustainable growth and improved shareholder value through disciplined risk management and strategic investments across its operations.
