First HoldCo grows Gross Earnings to ₦3.4 Trillion despite impairments

By Kazeem Ugbodaga

First HoldCo Plc has reported a 4.8 per cent year-on-year growth in gross earnings to ₦3.4 trillion for the unaudited financial year ended December 31, 2025, despite posting lower earnings due to a record impairment charge undertaken as part of a deliberate balance sheet clean-up strategy.

In its unaudited group financial results, the financial services group said the performance reflected a year of tough but strategic decisions aimed at strengthening asset quality, improving transparency and positioning the business for more resilient and sustainable growth, following successful capital-raising activities.

Net interest income rose sharply by 36.3 per cent year-on-year to ₦1.9 trillion, driven 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.

However, overall profitability declined compared to the previous year, largely due to significantly higher impairment charges in the commercial banking segment.

First HoldCo Plc explained that the spike in impairments followed a conscious decision to accelerate balance sheet clean-up and adopt more conservative provisioning standards, particularly after the end of regulatory forbearance.

In addition, higher regulatory costs weighed on the group’s bottom line, reflecting compliance with Nigeria’s financial system stability framework. Despite these pressures, management noted that the underlying performance of the business remained strong.

Deposit liabilities grew by 10.0 per cent year-on-year, supported by sustained deposit mobilisation and continued investment in digital banking platforms.

The deposit mix also improved, with a deliberate reduction in foreign currency deposits following the repayment of high-cost funding and the impact of naira appreciation, helping to enhance funding efficiency and reduce foreign exchange risk.

Gross loans and advances declined marginally, reflecting disciplined credit growth, strengthened risk management, loan repayments, write-offs and the translation effect of a stronger naira on foreign currency facilities. This, the group said, aligns with its objective of maintaining a cleaner, higher-quality loan book.

While non-interest income declined due to lower fair value gains on financial instruments after the naira’s appreciation, this was partly offset by stronger foreign exchange trading income and reduced FX revaluation losses.

Excluding impairment charges and fair value gains, pre-provision operating profit grew by 23.9 per cent to ₦973.3 billion, highlighting the robustness of the group’s core operations.

First HoldCo Plc said performance across its non-commercial banking businesses remained resilient and signalled plans to deepen digital and data capabilities, pursue selective growth opportunities and expand into targeted African markets.

Further details are expected when the audited full-year results are released, alongside the group’s investor and analyst earnings call.