First HoldCo Plc has shared its unaudited financial results for the year ended December 31, 2025, marking a period characterized by strategic initiatives aimed at bolstering its balance sheet, improving asset quality, and preparing the firm for sustainable growth amidst successful capital fundraising efforts.
According to the Group's unaudited financial statement, First HoldCo experienced a 4.8% increase in gross earnings year-on-year (y-o-y), reaching N3.4 trillion. This growth was significantly supported by a remarkable 36.3% y-o-y growth in net interest income, which stood at N1.9 trillion, driven by improved earnings yield and margins of 17.11% and 11.0%, respectively. Additionally, net fees and commissions also saw an 18.7% y-o-y increase, totaling N290.7 billion.
These figures highlight the robust revenue-generating capability of First HoldCo’s core operations. However, net earnings for the year were lower compared to the previous year, mainly due to heightened impairment charges associated with the commercial banking segment.
This decline aligns with a strategic move by the management to expedite the cleaning of the balance sheet and implement more rigorous provisioning standards. The leadership views this approach as a prudent measure that enhances transparency, boosts investor trust, and complies with evolving regulatory standards.
Moreover, the financial results were impacted by rising regulatory costs, which affected profitability. Nevertheless, these expenses underline the Group’s commitment to aligning with the financial stability framework in Nigeria and reinforcing systemic confidence. Despite these challenges, the Group’s underlying performance remains strong.
Deposit liabilities registered a growth of 10.0% y-o-y, attributed to consistent deposit mobilization and increased investment in digital banking platforms. This growth reflects a solid customer confidence and strengthened engagement across various key segments.
There was also a noticeable shift towards reducing foreign currency deposits, a result of repaying costly funding and the appreciation of the naira. This strategic adjustment aims to improve funding efficiency and mitigate foreign exchange risks.
The gross loans and advances saw a slight reduction, as a result of a disciplined stance on credit growth, improved risk management practices, loan repayments, and write-offs. The Group has intensified its focus on maintaining a high-quality, cleaner asset base to optimize its portfolio and boost future earnings potential.
Furthermore, the earnings performance was affected by declines in non-interest income, largely due to diminished fair value gains on financial instruments amidst the naira's appreciation in 2025. This decline was partially counterbalanced by stronger income from foreign exchange (FX) trading and reduced FX revaluation losses. Net fees and commission income had a boost, spurred by increased electronic banking fees, commissions from letters of credit, custodian fees, and account maintenance income, indicating the effectiveness of the Group's digital innovation strategy.
Although there was an uptick in impairment charges following the end of regulatory forbearance, management has prioritized recovery efforts and reinforced credit monitoring. Excluding impairment and fair value gains, pre- provision operating profit rose by 23.9% y-o-y to N973.3 billion, indicating the underlying strength of the core business.
Except for the commercial banking impairments, other segments within the Group performed robustly, supported by consistent customer activity and disciplined execution.
Looking towards the future, the Group is committed to consistently executing its strategic goals, focusing on enhancing efficiency and profitability, and continuing to develop its digital and data capabilities. They plan to maintain a strong balance sheet that promotes value creation and returns for shareholders. Additionally, the Group aims to explore selective growth opportunities, including new revenue channels, additional business sectors, and increased engagement in specific African markets, aligning with its strategic vision and risk appetite.
Detailed insights and further updates will be shared following the release of the audited full-year results and during the subsequent earnings call for investors and analysts.
Comments (0)
You must be logged in to comment.
Be the first to comment on this article!