FIRST HOLDCO PLC RECORDS ₦3.4 TRILLION GROSS EARNINGS, TAKES BOLD BALANCE SHEET CLEAN-UP WITH RECORD IMPAIRMENT CHARGE

First HoldCo Plc has released its unaudited financial results for the full year ended 31 December 2025, reflecting a year of deliberate and strategic actions to strengthen asset quality, enhance balance-sheet resilience, and position the Group for sustainable long-term growth, following successful capital-raise activities. 

The Group recorded a 4.8 per cent year-on-year increase in gross earnings to ₦3.4 trillion, driven by strong core banking performance. Net interest income grew by 36.3 per cent 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 rose by 18.7 per cent to ₦290.7 billion, underscoring the strength of the Group’s revenue-generating capacity.

Despite these gains, profitability declined year-on-year, largely due to higher impairment charges in the commercial banking segment. Management explained that the increase reflects a deliberate and accelerated balance-sheet clean-up, following the end of regulatory forbearance and the adoption of more conservative provisioning standards. The Group described the move as a prudent step aimed at enhancing transparency, strengthening investor confidence, and aligning fully with evolving regulatory expectations.

Profitability was also impacted by higher regulatory costs, which, while weighing on earnings, reinforce the Group’s commitment to compliance and the stability of Nigeria’s financial system. Management noted that the underlying operating performance of the Group remains strong.

Deposit liabilities grew by 10.0 per cent year-on-year, driven by sustained deposit mobilisation and continued investments in digital banking platforms. The growth reflects strong customer confidence and deeper engagement across key customer segments. The deposit mix also showed a deliberate reduction in foreign-currency deposits, following the repayment of expensive funding and the impact of naira appreciation—improving funding efficiency and reducing foreign-exchange risk.

Gross loans and advances declined marginally, reflecting a disciplined credit growth strategy, stronger risk management, loan repayments, write-offs, and the translation impact of a stronger naira on foreign-currency facilities. The Group said it remains focused on maintaining a high-quality and cleaner loan portfolio to support improved earnings over the medium term.

Non-interest income declined, largely due to lower fair-value gains on financial instruments following naira appreciation in 2025. This was partly offset by stronger foreign-exchange trading income and reduced FX revaluation losses. Growth in net fees and commissions was supported by higher electronic banking fees, letters of credit commissions, custodian fees, and account maintenance income—reflecting the continued success of the Group’s digital-innovation strategy.

Excluding impairment charges and fair-value gains, pre-provision operating profit grew by 23.9 per cent year-on-year to ₦973.3 billion, highlighting the robustness of the Group’s core business. Outside the commercial banking impairments, performance across other subsidiaries remained resilient, supported by steady customer activity and disciplined execution.

Looking ahead, First HoldCo Plc said it will continue to prioritise disciplined execution of its strategic objectives, with emphasis on improving efficiency and profitability, strengthening digital and data capabilities, and maintaining a robust balance sheet to drive shareholder value. 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.