First HoldCo PLC Reports N3.4 Trillion in Gross Earnings

First HoldCo PLC has released its unaudited financial results for the year ending 31 December 2025, illustrating a year marked by strategic measures aimed at strengthening its financial position, enhancing asset quality, and setting the stage for sustainable growth amid successful capital raising activities.

According to the unaudited Group financial statement, FirstHoldCo saw a 4.8% year-on-year (y-o-y) increase in gross earnings, reaching N3.4 trillion. This growth was largely supported by a 36.3% y-o-y rise in net interest income to N1.9 trillion, driven by improved yields and margins of 17.11% and 11.0%, respectively. Additionally, net fees and commissions increased by 18.7% y-o-y to N290.7 billion, underscoring the strength of the core business’s revenue-generating capacity.

However, profits for the year were lower than the previous year, primarily due to higher impairment charges within the commercial banking segment. This reflects a strategic decision to accelerate balance sheet clean-up and adopt more aggressive provisioning standards. Management regards this move as prudent, enhancing transparency, boosting investor confidence, and aligning with evolving regulatory expectations.

Increased regulatory costs also impacted profitability. While these charges weighed on results, they demonstrate the Group’s compliance with Nigeria’s financial system stability framework and its commitment to systemic confidence. Despite these pressures, the underlying performance remains robust.

Deposit liabilities grew by 10.0% y-o-y, driven by sustained deposit mobilisation and continued investments in digital banking platforms. This growth indicates strong customer confidence and deeper engagement across key segments. The deposit composition also shifted, with a deliberate reduction in foreign currency deposits due to the repayment of expensive funding and the naira’s appreciation, which supports improved funding efficiency and reduces foreign exchange risk.

Gross loans and advances declined marginally, reflecting disciplined credit growth, enhanced risk management, loan repayments, write-offs, and the impact of the stronger naira on foreign currency facilities. The Group remains committed to maintaining a high-quality, cleaner asset portfolio to optimise future earnings.

Earnings performance was affected by a decline in non-interest income, mainly due to lower fair value gains on financial instruments following naira appreciation in 2025. This was partly offset by stronger foreign exchange (FX) trading income and reduced FX revaluation losses. Net fees and commissions grew, supported by higher electronic banking fees, letters of credit commissions, custodian fees, and account maintenance income, highlighting the success of the Group’s digital innovation strategy.

Impairment charges increased following the cessation of regulatory forbearance, but management has intensified recovery efforts and strengthened credit oversight. Excluding impairment and fair value gains, pre-provision operating profit rose by 23.9% y-o-y to N973.3 billion, demonstrating the resilience of the core business.

Aside from the impairments in the commercial banking segment, performance across the rest of the Group remained steady, supported by consistent customer activity and disciplined execution.

Looking forward, the Group plans to focus on disciplined execution of its strategic objectives, with an emphasis on improving efficiency and profitability, expanding digital and data capabilities, and maintaining a robust balance sheet to drive value for shareholders. The Group will also pursue selective growth initiatives, including new revenue streams, additional business verticals, and increased participation in targeted African markets, aligned with its risk appetite and strategic vision.

Further details and insights will be provided when the audited full-year results are published, along with discussions during the upcoming investor and analyst earnings call.