First HoldCo Earnings Rise By 18% To N1.7trn H1

First HoldCo Plc has reported an 18.1 per cent year-on-year increase in gross earnings to N1.7 trillion for the half year ended June 30, 2025, as its interest income surged by 51 per cent in the period under review.

According to its unaudited financial results released yesterday, gross earnings rose to N1.656 trillion from N1.402 trillion recorded in the same period of 2024, buoyed by a 75.7 per cent year-on-year surge in net interest income, which hit N904.8 billion.

The Group’s interest income climbed by  51.7 per cent to N1.44 trillion, up from N947.7 billion in the corresponding period of last year. However, non-interest income declined sharply by 56.5 per cent to N189.4 billion, down from N435.7 billion in H1 2024, due mainly to the absence of significant foreign exchange revaluation gains recorded in the previous year.

Despite the revenue growth, profit before tax fell by 13.6 per cent to N356.1 billion, while profit after tax declined 20.7 per cent to N289.8 billion. This reflects the impact of a nearly 100 per cent increase in impairment charges to N185.4 billion and a 24 per cent rise in operating expenses to N552.8 billion.

Commenting on the financials, First Holdco’s group managing director, Adebowale Oyedeji, said, “FirstHoldCo has once again demonstrated its resilience and tenacity amidst a challenging macroeconomic backdrop. Gross earnings grew to N1.7 trillion due to strong net interest income. This underscores our ability to capitalise on market opportunities while maintaining a strong focus on profitability.”

He explained that the drop in profit before tax was due to the normalisation of foreign exchange gains and increased provisioning for unresolved forborne loans as the Group continues to strengthen its balance sheet.

“Looking ahead, our immediate priorities are strengthening our earnings profile, completing the recapitalisation of FirstBank well before the March 2026 deadline, and achieving full resolution of forbearance loans by financial year end 2025.”

First Holdco’s Group’s total assets rose 2.5 per cent to N27.2 trillion in June 2025, compared with N26.5 trillion at the end of December 2024. Customer deposits also grew by 4.2 per cent to N17.9 trillion, while net loans and advances edged up by 1.1 per cent to N8.9 trillion.

The Group continued to record improvements in key interest-related metrics, with net interest margin rising to 10.4 per cent from 7.7 per cent in the prior year. Earnings yield improved to 16.5 per cent from 14.1 per cent, while cost of funds declined to 4.8 per cent compared to 5.2 per cent last year.

The cost-to-income ratio rose to 50.5 per cent, up from 46.9 per cent, while the cost of risk increased to 3.9 per cent from 2.3 per cent. Non-performing loan (NPL) ratio stood at 12.9 per cent from 10.2 per cent, while NPL coverage dropped to 38.8 per cent from 54.8 per cent.

Post-tax return on average equity (ROAE) moderated to 20.2 per cent, compared to 36.9 per cent in the same period last year, while return on average assets fell to 2.2 per cent from 3.6 per cent.

Book value per share rose to N70.4, up from N61.7 as of June 2024, reflecting the Group’s retained earnings growth. Capital adequacy ratio stood at 16.9 per cent, up from 16.5 per cent in December 2024, providing a solid buffer as the Group gears up for recapitalisation plans.

Oyedeji reaffirmed the Group’s strategic commitment to driving long-term growth: “Our focus remains accelerating digital transformation, enhancing customer experience, increasing operational excellence and maintaining disciplined risk asset governance. We are confident in our ability to deliver optimal value to shareholders.”