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Strong Core Banking Drives Top-Line Growth
First HoldCo Plc, formerly FBN Holdings, recorded a 6.9 per cent year-on-year increase in gross earnings to ₦3.44 trillion for the financial year ended December 31, 2025, up from ₦3.21 trillion in 2024. The performance was largely driven by resilient core banking activities and higher interest income in a volatile macroeconomic environment.
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Interest income rose by 24.9 per cent to ₦2.99 trillion, while net interest income surged by 36.8 per cent to ₦1.92 trillion, reflecting improved asset yields and balance sheet optimisation.
Profit Slides on Aggressive Balance Sheet Clean-Up
Despite the strong revenue growth, profit before tax (PBT) declined sharply by 70.5 per cent to ₦235 billion from ₦796.5 billion in 2024. Profit after tax (PAT) also fell by 79.4 per cent to ₦139.5 billion.
The Group attributed the steep decline in profitability to a 93.8 per cent spike in impairment charges, which rose to ₦826.3 billion from ₦426.3 billion in the previous year. The elevated provisioning reflects a deliberate strategy to clean up legacy non-performing exposures and strengthen balance sheet resilience under the post-forbearance regulatory regime.
Rising Costs Add Pressure
Operating expenses increased by 32.1 per cent to ₦1.23 trillion, driven by higher personnel costs, regulatory levies, administrative expenses, inflationary pressures and foreign exchange volatility, alongside increased investment in brand visibility and customer engagement.
Management: 2025 Was a Strategic “Reset” Year
Commenting on the results, Group Managing Director Wale Oyedeji described 2025 as a defining and transitional year for the Group.
“FirstHoldCo has begun 2026 on a strong footing, delivering a Q1 performance that validates the resilience of our franchise and the disciplined execution of our strategy. In a market defined by volatility, our results underscore that our business is not only enduring but strengthening—built to perform through cycles and to compound value for shareholders,” said Wale Oyedeji, the Group Managing Director.
According to him, FirstHoldCo undertook comprehensive de-risking measures, making adequate provisions for impaired and non-performing loans—particularly in response to regulatory changes—to enhance transparency, improve asset quality and position the Group for sustainable long-term growth.
Asset Quality Improves Despite Higher NPL Ratio
The Group’s non-performing loan (NPL) ratio increased to 12 per cent from 10.2 per cent in 2024, largely due to higher exposures in the oil and gas sector. However, its NPL coverage ratio strengthened significantly to 98.7 per cent from 54.8 per cent, underscoring improved provisioning and balance sheet robustness.
Net fees and commission income rose by 20.2 per cent to ₦294.5 billion, supported by increased digital transaction volumes, transfer fees and trade-related commissions.
Capital Raising and Outlook
FirstHoldCo disclosed that it is actively raising capital to reinforce its balance sheet, having secured ₦128.7 billion towards a ₦350 billion target. Management noted that 2025 was a reset year, laying the groundwork for higher-quality earnings and sustainable growth.
Early indicators suggest a turnaround, with the Group posting a strong rebound in Q1 2026, including a 26.8 per cent rise in gross earnings to ₦942.0 billion and a 72.2 per cent jump in PBT to ₦321.1 billion—one of the strongest quarterly performances in the Nigerian banking sector.
“Looking ahead, this strong start to the year reinforces our confidence in the earnings power of the FirstHoldCo franchise and our ability to generate enduring value for all stakeholders. We will sustain momentum by continuing to grow quality earnings, capturing emerging opportunities in Nigeria’s evolving financial services landscape, and translating our scale, governance, and execution discipline into superior shareholder returns in 2026 and beyond,” Oyedeji added.
Business Segment Performance Snapshot
Commercial Banking
- Gross earnings: ₦3.36 trillion (+8.1% y-o-y)
- Net interest income: ₦1.89 trillion (+36.1% y-o-y)
- Profit before tax: ₦201.2 billion (-72.1% y-o-y)
- Total assets: ₦26.7 trillion (+4.8% y-o-y)
- Customer deposits: ₦18.9 trillion (+10.0% y-o-y)
Investment Banking & Asset Management (IBAM)
- Gross earnings: ₦72.8 billion (-30.1% y-o-y)
- Profit before tax: ₦31.9 billion (-43.6% y-o-y)
- Total assets: ₦535.3 billion (+4.0% y-o-y)
