By Amofokhai Williams
First HoldCo Plc, the holding company for First Bank of Nigeria, reported unaudited full-year 2025 results showing gross earnings rising 4.8% year-on-year to ₦3.4 trillion, underpinned by strong core banking performance, even as profitability declined due to a deliberate and substantial impairment charge aimed at accelerating asset quality improvement.
Net interest income surged 36.3% to ₦1.9 trillion, reflecting higher yields (17.11%) and a net interest margin of 11.0%. Net fees and commission income grew 18.7% to ₦290.7 billion, driven by electronic banking, trade-related commissions, and digital growth.
These metrics highlight the resilience of the group’s core revenue-generating capacity amid Nigeria’s challenging macroeconomic environment, including naira appreciation effects.
However, bottom-line earnings fell sharply year-on-year, primarily due to a record impairment charge in the commercial banking segment.
Management framed this as a proactive, prudent decision to clean up the balance sheet, adopt more aggressive provisioning following the end of regulatory forbearance, enhance transparency, and align with evolving regulatory standards.
Increased regulatory costs further pressured profitability, though management views these as necessary for long-term systemic stability and investor confidence.
Pre-provision operating profit, excluding impairment charges and fair value items, rose a robust 23.9% to ₦973.3 billion, demonstrating underlying operational strength.
On the balance sheet, customer deposits grew 10.0% year-on-year, supported by digital platform investments and sustained customer confidence.
The group deliberately reduced higher-cost foreign currency deposits through repayment of expensive funding and the positive impact of naira appreciation, lowering foreign exchange risk and improving funding efficiency.
Gross loans and advances declined marginally, reflecting disciplined credit extension, stronger risk management, repayments, write-offs, and the translation benefits of a stronger naira on foreign currency loans. Non-interest income was negatively affected by lower fair value gains on financial instruments due to naira appreciation, though this was partly mitigated by higher FX trading income and lower revaluation losses.
Management emphasised intensified recovery efforts and reinforced credit oversight. Performance outside the commercial banking segment remained resilient.
Looking ahead, First HoldCo will focus on operational efficiency, profitability enhancement, digital and data capabilities, and maintaining a robust balance sheet to drive shareholder returns. The group plans selective expansion into new revenue streams, additional business verticals, and targeted opportunities in African markets, in line with its risk appetite.
Further details and analysis will be available upon release of the audited full-year financial statements and during the forthcoming investor and analyst earnings call.
This strategic clean-up positions the group for more sustainable growth but highlights the short-term profitability trade-off common in Nigeria’s evolving banking landscape post-regulatory forbearance.
