First HoldCo Plc reported a staggering ₦405.89 billion loss in the fourth quarter of 2025, a sharp reversal from a ₦143.13 billion profit in the same period of 2024.
Rising impairment charges and higher operating costs wiped out gains from interest income and fees, leaving investors with a sobering set of numbers.
Full-Year Profits Take a Hit
For the entire 2025 financial year, the group posted a profit after tax of ₦44.98 billion, down sharply from ₦677.01 billion in 2024.
Profit attributable to shareholders fell to ₦38.04 billion, a fraction of the ₦670.80 billion recorded a year earlier.
Analysts pointed to pressures across core banking operations as a key driver behind the steep decline.
Interest Income Climbs but Impairments Bite
Interest income rose to ₦2.96 trillion in 2025, up from ₦2.40 trillion in 2024, thanks to asset growth and higher yields.
Net interest income improved to ₦1.91 trillion, but rising impairment charges for credit losses — which jumped to ₦748.13 billion from ₦426.29 billion — cut deeply into profits.
Net interest income after impairment stood at ₦1.16 trillion, higher than the previous year’s ₦975.02 billion, but still not enough to offset mounting costs.
Mixed Results in Non-Interest Income
Fee and commission income showed some resilience, rising to ₦290.74 billion from ₦244.89 billion in 2024.
But volatility in foreign exchange markets weighed on results, with a ₦34.30 billion FX loss in Q4 alone.
Investment income was a mixed bag: net gains on sale of investment securities improved to ₦53.32 billion, yet losses from financial instruments at fair value through profit or loss widened to ₦87.06 billion, a sharp swing from a ₦549.99 billion gain the year before.
Operating Expenses Surge
Rising costs added to the pressure. Personnel expenses climbed to ₦385.91 billion, while other operating expenses jumped to ₦809.36 billion due to inflation, regulatory requirements, and technology investments.
Operating profit for the year dropped to ₦228.37 billion from ₦795.93 billion in 2024, and Q4 alone swung to a ₦337.54 billion loss.
Profitability and Earnings Per Share
Profit before tax fell to ₦229.10 billion from ₦796.47 billion a year earlier.
After tax, continuing operations contributed ₦52.75 billion, and including discontinued operations, total profit was just ₦44.98 billion.
Earnings per share tumbled to ₦0.91, down sharply from ₦18.59 in 2024, highlighting the scale of the earnings compression.
Holding Company Performance More Stable
At the holding company level, performance was steadier.
First HoldCo Plc recorded a profit after tax of ₦42.30 billion, up from ₦26.22 billion in 2024, thanks to dividend income of ₦26.24 billion and gains from restructuring activities, including subsidiary disposals.
Looking Ahead
The 2025 results underline how sensitive First HoldCo’s earnings are to credit quality, market volatility, and cost management.
While interest income and fee revenue showed resilience, aggressive provisioning, weaker trading income, and rising operating costs overshadowed these gains.
Stabilising credit quality and rebuilding non-interest income streams will be crucial if the group hopes to return to stronger profitability in 2026.
Share on Facebook «||» Share on Twitter «||» Share on Reddit «||» Share on LinkedIn