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First HoldCo Posts Strong Revenue Growth in FY 2025
First HoldCo Plc has released its unaudited financial results for the year ended December 31, 2025, reporting a 4.8 per cent year-on-year increase in gross earnings to ₦3.4 trillion.
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The performance reflects a year of deliberate strategic actions focused on balance sheet strengthening, asset quality improvement, and long-term resilience, following successful capital-raising activities.
Net Interest Income, Fees Drive Revenue Performance
According to the unaudited Group financial statement, net interest income rose by 36.3 per cent year-on-year to ₦1.9 trillion, supported by improved earnings yield and margins of 17.11 per cent and 11.0 per cent, respectively.
Net fees and commission income also increased by 18.7 per cent to ₦290.7 billion, underscoring the strength of the Group’s core revenue-generating capacity and the continued momentum of its digital banking strategy.
Earnings Impacted by Higher Impairment Charges
Despite strong top-line growth, earnings for the year declined compared to the prior year, largely due to higher impairment charges in the commercial banking segment.
Management explained that the elevated impairments reflect a deliberate decision to accelerate balance sheet clean-up and adopt more conservative provisioning standards following the end of regulatory forbearance. The Group described the move as a prudent step aimed at improving transparency, strengthening investor confidence, and aligning with evolving regulatory expectations.
Regulatory Costs Weigh on Profitability
Profitability was further affected by increased regulatory costs, which management said underscores the Group’s compliance with Nigeria’s financial system stability framework.
“While these charges weighed on results, they reflect our commitment to regulatory compliance and systemic confidence,” the Group noted, adding that the underlying performance of the business remains strong.
Deposits Grow as Digital Banking Gains Traction
Deposit liabilities increased by 10.0 per cent year-on-year, driven by sustained deposit mobilisation and continued investment in digital banking platforms. The growth highlights strong customer confidence and deeper engagement across key market segments.
The deposit mix also showed a deliberate reduction in foreign currency deposits, following the repayment of high-cost funding and the impact of naira appreciation. This shift improved funding efficiency and reduced foreign exchange risk exposure.
Disciplined Credit Growth Supports Asset Quality
Gross loans and advances declined marginally during the year, reflecting a disciplined approach to credit growth, strengthened risk management, loan repayments, write-offs, and the translation effect of a stronger naira on foreign currency loans.
The Group said it remains committed to maintaining a high-quality, cleaner asset base to optimise its loan portfolio and enhance future earnings potential.
Non-Interest Income Affected by Naira Appreciation
Non-interest income declined due to lower fair value gains on financial instruments following the naira appreciation in 2025. However, this was partly offset by stronger foreign exchange trading income and reduced FX revaluation losses.
Net fees and commissions continued to grow, supported by higher electronic banking fees, letters of credit commissions, custodian fees, and account maintenance income—further validating the success of the Group’s digital innovation strategy.
Core Operating Profit Remains Robust
Excluding impairment charges and fair value gains, pre-provision operating profit rose by 23.9 per cent year-on-year to ₦973.3 billion, demonstrating the robust performance of the Group’s core business.
Aside from the elevated commercial banking impairments, performance across other business segments remained resilient, supported by steady customer activity and disciplined execution.
Outlook: Focus on Efficiency, Digital Growth and Selective Expansion
Looking ahead, First HoldCo said it will continue to prioritise disciplined execution of its strategic objectives, with a focus on:
- Enhancing efficiency and profitability
- Expanding digital and data capabilities
- Sustaining a strong balance sheet
The Group also plans to pursue selective growth opportunities, including new revenue streams, additional business verticals, and deeper participation in targeted African markets, in line with its strategy and risk appetite.
Further details will be provided upon the release of the audited full-year results and during the subsequent investor and analyst earnings call.
