FirstHoldCo increases gross profits to N3.4 trillion

FirstHoldCo Plc says its gross profits increased 6.9% to 3.4 trillion naira for the year ended December 31, 2025.

The figure, when compared to $3.2 trillion in 2024, was driven by strong core banking operations and a diversified revenue base.

The group, in a statement on Friday, made this known as contained in its audited financial results for the year ended December 31, 2025.

It said interest income increased by 24.9% to N3 trillion from N2.9 trillion in 2024, supported by proactive asset revaluation and improved returns.

According to the group, net interest income also grew significantly by 36.8% to 1.9 trillion naira, resulting in a net interest margin of 11.1%.

The company noted that non-interest income remained strong during the year, with net fees increasing by 20.2% to N294.5 billion.

It attributed the growth to increased digital transaction volumes, transfer and brokerage fees, as well as higher earnings from letter of credit fees and related services.

The group said its diversified and resilient revenue generation model continued to support earnings performance.

However, it said operating expenses rose 32.1% to 1.2 trillion naira from 934.2 billion naira in 2024, due to inflationary pressures and foreign exchange-related costs.

According to the group, the increase is driven by higher personnel expenses, regulatory fees, advertising and corporate promotion initiatives aimed at business growth and customer engagement, as well as higher administrative expenses.

He noted that the cost/income ratio consequently rose to 53.8%.

The group reported that profit before tax decreased by 70.5% to N235.0 billion, mainly due to a 93.8% increase in write-downs and normalization of foreign exchange profits recorded in previous years.

Despite the decline, the company said its underlying performance remained strong, with normalized profit before provisions rising 36.6% to N1.07 trillion.

According to the group, this reflects earnings resilience and core operational strength.

The company said total assets grew 2.7% year-on-year to N27.3 trillion from N26.5 trillion in December 2024.

The growth reflects the expansion of interest-bearing assets, with cash balances at central banks, loans to banks and customers, as well as investment securities accounting for 89.8% of total assets, up from 86.8% a year earlier.

On asset quality, the group said the non-performing loan ratio increased to 12% from 10.2% in 2024, due to higher impairment charges linked to sector-wide oil and gas exposures.

It noted, however, that collateral values ​​remained adequate to cover exposures and that early repayments to customers were expected to support earnings recovery.

The group noted that its coverage ratio improved significantly to 98.7% from 54.8% in 2024, reflecting greater balance sheet resilience.

Efforts are underway to strengthen credit risk management, intensify loan recovery initiatives and reposition the loan portfolio for greater sustainability.

The company also said customer deposits increased by 10% to N18.9 trillion, supported by a high-quality Current and Savings Account (CASA) mix of 93.1%.

According to the group, the growth reflects sustained customer confidence and a stable funding base.

It noted that loans and advances increased modestly by 2.3% to N9.0 trillion, in line with its prudent risk management approach.

The group also said its capital base improved during the year, with share premium rising to N458.4 billion following a successful capital raise.

It said total shareholder funds increased from N2.8 trillion in 2024 to N3.3 trillion in 2025.

The company said it is making steady progress in rebuilding its capital position through sustained revenue growth, disciplined earnings maintenance, capital raising efforts and continued loan recoveries.

Commenting on the results, Group Chief Executive Officer, Wale Oyedeji, said: “2025 was a defining year for FirstHoldCo, characterized by disciplined execution, resilient core earnings and a comprehensive reset of our balance sheet for sustainable performance and high-quality growth.

“Gross earnings grew 6.9% to 3.4 trillion naira, supported by strong net interest income growth of 36.8% and continued momentum from our digital and transactional franchises.

“Importantly, we have fully de-risked the group’s balance sheet by adequately catering for impaired and non-performing systemic exposures.

“This decisive action, in line with the post-forbearance landscape, improves transparency and places the group on a much stronger foundation for future growth, improved asset quality and higher quality earnings.

“We have also strengthened our capital position through targeted capital raising initiatives to ensure that First Bank meets the minimum regulatory capital requirements of N500 billion.

“Additionally, and under our N350 billion capital raising programme, we have successfully secured N128.7 billion to date.

“We remain firmly on track and continue to proactively engage with regulators and the market to provide a further enhanced and well-capitalized platform that can drive growth and enhance value creation.

“The Group continues to demonstrate strong leadership in industry-wide resolution of legacy exposures of defaulted borrowers.

“We have seen notable progress in recoveries, particularly from upstream borrowers with significant collateral secured by oil reserves, reinforcing our commitment to disciplined risk management and balance sheet strength.

“In addition to these actions, we have continued to invest in governance, technology and inclusion, deepening customer engagement, broadening access and strengthening execution across the group.”

Oyediji said the company’s priorities for the future are clear and focused on improving earnings quality, driving operational efficiency, strengthening asset quality and capital position, as well as expanding non-banking businesses through disciplined risk and capital management.

He noted that with a cleaner balance sheet and a clearly defined capital path, FirstHoldCo was well positioned to accelerate sustainable growth and deliver consistent returns to shareholders.

According to him, the group is a strong franchise, built on scale, trust and systemic relevance

He noted that management remains committed to creating long-term value and increasing shareholder returns.