First HoldCo has grown gross earnings to N3.4trn in 2025 despite record impairment charge.
NewsOnline Nigeria reports that 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 N3.4 trillion, despite taking a record impairment charge as part of a deliberate balance sheet clean-up strategy.
The Group said the results reflect a year of strategic actions aimed at strengthening asset quality, improving transparency and positioning the business for more resilient and sustainable growth, alongside successful capital-raising activities.
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According to the unaudited Group financial statements, net interest income rose by 36.3 per cent year-on-year to N1.9 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 N290.7 billion, underscoring the strong revenue-generating capacity of the core business.
However, earnings for the year declined compared to the prior year, largely due to higher impairment charges in the commercial banking segment. Management said this followed a strategic decision to accelerate balance sheet clean-up and adopt more conservative provisioning standards in line with evolving regulatory expectations.
Increased regulatory costs also weighed on profitability, reflecting the Group’s compliance with Nigeria’s financial system stability framework. Despite these pressures, First HoldCo said its underlying performance 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 Group also recorded a reduction in foreign currency deposits, driven by repayment of expensive funding and the impact of naira appreciation, a move that improved funding efficiency and reduced foreign exchange risk.
Gross loans and advances declined marginally, reflecting a disciplined approach to credit growth, enhanced risk management, loan repayments, write-offs and the impact of a stronger naira on foreign currency-denominated facilities. The Group said this approach aligns with its focus on maintaining a cleaner, high-quality asset base to support future earnings.
Non-interest income declined during the period due to lower fair value gains on financial instruments following the naira’s appreciation in 2025. This was partly offset by stronger foreign exchange trading income and reduced FX revaluation losses. Growth in electronic banking fees, letters of credit commissions, custodian fees and account maintenance income also supported performance, reflecting the success of the Group’s digital innovation strategy.
Excluding impairment charges and fair value gains, pre-provision operating profit rose by 23.9 per cent year-on-year to N973.3 billion, highlighting the robustness of the Group’s core operations.
Beyond the commercial banking impairments, performance across other business segments remained resilient, supported by steady customer activity and disciplined execution.
Looking ahead, First HoldCo said it would continue to focus on efficiency, profitability and strengthening its digital and data capabilities, while maintaining a robust balance sheet to drive value creation for shareholders. The Group also plans to pursue selective growth opportunities, including new revenue streams, additional business verticals and deeper participation in targeted African markets.
Further details are expected to be shared with the release of the audited full-year results and during the subsequent investor and analyst earnings call.
