First HoldCo Posts N3.21trn Gross Earnings Growth In 2024

First Holdco Plc has posted gross earnings of N3.213 trillion for the year ended December 31, 2024.

The Holding Company is its audited results released on the Nigerian Exchange yesterday showed strong growth across key financial metrics, driven by the impressive performance of its core banking operations.

Gross earnings rose by 105.7 per cent from N1.562 trillion in 2023 to N3.213 trillion declared in the full year 2024. Net interest income up by 156.59 year-on-year to N1.401 trillion from N546.288 billion in 2023, while operating profit rose by 124 per cent from N355.328 billion in 2023 to N795.932 billion in 2024.

Profit before income tax went up to N781.883 billion from N347.866 billion in 2023, while the Group net profit for the year ended 2024 stood at N677.005 billion higher than N310.370 billion in 2023. Earnings per share amounted to N1, 869 as against N859 in 2023.

Loans and advances to customers up to N8.768 trillion in 2024 compared to N6.359 trillion in 2023, signaling its continued commitment to supporting economic activity despite the challenging macroeconomic environment; while deposits from customers rose by 62 per cent to N17.171 trillion in the year under review from N10.663 trillion in 2023, bolstering the bank’s lower-cost funding base.

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Total assets for the Group stood at N26.524 trillion as at December 2024 from N16.938 trillion in 2023.

The board of directors of the Company proposed a dividend of 60 kobo per ordinary share of 50 kobo each, amounting to N25.127 billion.

First HoldCo disclosed that this performance will be sustained to improve its shareholder value into the future, saying that “the Group is committed to further enhancing revenue and profitability by strengthening value proposition, refining our governance model, and maximising operational efficiencies.

“In the face of the increasingly competitive environment, the Group maintains a forward-looking approach, with a clear aim of building a sustainable institution and surpassing stakeholders’ expectations.”

To support its business expansion and align with new regulations for international bank capital requirements, First HoldCo issued a rights issue of 5.983 billion ordinary shares priced at N25.00 each in December 2024, amounting to N149.56 billion. The initiative is designed to meet the capital requirements of Nigeria’s Central Bank. Beyond regulatory compliance, the funds are expected to enhance liquidity, improve financial stability, and support sustained growth for First Bank of Nigeria Limited, FBNH’s flagship subsidiary, strengthening its competitiveness in the Nigerian market.

Analysts said, “in the long term, the proceeds from the rights issue are expected to drive sustained profitability and market leadership, mainly through expanded lending capacity, international growth, and improved digital infrastructure.

“While the increased cost of risk poses challenges, shareholders participating in the rights issue stand to benefit from both immediate value opportunities and the bank’s strengthened market position, assuming effective management of credit risk and profitability.”