Keypoints
- FirstHoldCo Plc reported gross earnings of N3.4 trillion for the 2025 financial year, a 6.9% increase from N3.2 trillion in 2024.
- Profit before tax dropped by 70.5% to N235.0 billion, primarily due to a 93.8% surge in impairment charges.
- Interest income rose by 24.9% to N3 trillion, while net interest income grew by 36.8% to N1.9 trillion.
- The non-performing loan (NPL) ratio increased to 12% from 10.2%, largely linked to industry-wide exposures in the oil and gas sector.
- Total assets grew to N27.3 trillion, supported by a 10% rise in customer deposits which reached N18.9 trillion.
Main Story
FirstHoldCo Plc has released its audited financial results for the year ended December 31, 2025, showing a resilient top-line performance amid a strategic “reset” of its balance sheet.
Gross earnings grew to N3.4 trillion, supported by a diversified income base and strong core banking operations.
Net interest income saw a significant jump of 36.8%, reaching N1.9 trillion, while digital transaction volumes and transfer fees pushed net fees and commission income up by 20.2% to N294.5 billion.
Despite the revenue growth, the group’s bottom line was impacted by a 70.5% decline in profit before tax, which settled at N235.0 billion.
Management attributed this to a massive 93.8% increase in impairment charges as the bank moved to de-risk its balance sheet and provide for non-performing loans, particularly in the oil and gas sector.
Operating expenses also rose by 32.1% to N1.2 trillion, driven by inflationary pressures, regulatory fees, and foreign exchange costs. However, the group’s capital position improved, with shareholders’ funds increasing to N3.3 trillion following successful capital-raising initiatives.
The Issues
- High impairment charges and the normalization of previous foreign exchange gains significantly eroded the group’s net profit for the year.
- The non-performing loan ratio remains above regulatory preferences at 12%, driven by systemic challenges in energy sector exposures.
- Inflationary pressures and currency-related costs continue to drive double-digit growth in operating expenses, impacting the cost-to-income ratio.
What’s Being Said
- “2025 was a defining year for FirstHoldCo, characterised by disciplined execution, resilient core earnings and a comprehensive reset of our balance sheet,” said Mr Wale Oyedeji, Group Managing Director.
- “We comprehensively de-risked the group’s balance sheet by adequately providing for systemic impaired and non-performing exposures. This decisive action… enhances transparency,” Oyedeji added.
- “Under our N350 billion capital raise programme, we have successfully secured N128.7 billion to date. We remain firmly on track,” the Managing Director noted.
What’s Next
- FirstHoldCo will continue its N350 billion capital-raising programme to meet the N500 billion minimum regulatory requirement for its banking subsidiary.
- The group intends to intensify loan recovery initiatives, particularly from upstream oil borrowers, to improve asset quality.
- Strategic focus will shift toward expanding non-banking businesses and improving operational efficiency to accelerate sustainable growth.
Bottom Line
FirstHoldCo chose to prioritize long-term balance sheet health in 2025, absorbing a 70% profit drop to clean up bad loans and strengthen its capital foundation for future growth.
