First HoldCo Targets Expansion, Digital Growth as Earnings Hit N3.4tn Despite Record Impairments
First HoldCo Plc says it will continue to prioritise disciplined execution of its strategic objectives, with emphasis on enhancing efficiency and profitability, deepening its digital and data capabilities, and sustaining a robust balance sheet to drive increased value creation and returns for shareholders.
The Group also plans to pursue selective growth initiatives, including new revenue streams, additional business verticals and deeper participation in targeted African markets, in line with its strategy and risk appetite.
Further details and insights, the company said, will be provided when its audited full-year results are published and during the subsequent investor and analyst earnings call.
Against this forward-looking backdrop, First HoldCo Plc has announced its unaudited financial results for the year ended 31 December 2025, reflecting what it described as a year of deliberate strategic actions aimed at strengthening its balance sheet, improving asset quality and positioning the business for more resilient and sustainable growth, alongside successful capital-raising activities.
The Group recorded a 4.8 per cent year-on-year increase in gross earnings to N3.4 trillion, supported by a 36.3 per cent growth in net interest income 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 commissions also rose by 18.7 per cent to N290.7 billion, underscoring the strength of the Group’s core revenue-generating capacity.
Earnings for the year, however, were lower than the prior year, largely due to higher impairment charges in the commercial banking segment.
Management said this reflected a deliberate strategic decision to accelerate balance-sheet clean-up and adopt more aggressive provisioning standards, describing the move as a prudent step that enhances transparency, strengthens investor confidence and aligns with evolving regulatory expectations.
Profitability was also impacted by increased regulatory costs, which the Group said underscore its compliance with Nigeria’s financial system stability framework and its commitment to systemic confidence.
Despite these pressures, the underlying performance of the business remained strong.
Deposit liabilities grew by 10.0 per cent year-on-year, driven by sustained deposit mobilisation and continued investment in digital banking platforms, reflecting strong customer confidence and deeper engagement across key 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, a shift that supports improved funding efficiency and reduced foreign exchange risk.
Gross loans and advances declined marginally, reflecting a disciplined approach to credit growth, strengthened risk management, loan repayments, write-offs and the translation impact of a stronger naira on foreign currency facilities.
The Group said it has intensified efforts to ensure a higher-quality, cleaner asset base to optimise its portfolio and enhance future earnings potential.
Non-interest income declined, mainly 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.
Net fees and commission income grew, 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.
While impairment charges increased following the end of regulatory forbearance, management said recovery initiatives and credit oversight have been intensified. Excluding impairment and fair value gains, pre-provision operating profit grew by 23.9 per cent year-on-year to N973.3 billion, demonstrating the resilience of the Group’s core operations.
Apart from the commercial banking impairments, performance across the rest of the Group remained resilient, supported by steady customer activity and disciplined execution, reinforcing First HoldCo’s position as it takes what it described as a decisive approach to balance-sheet strengthening while laying the foundation for sustainable, long-term growth.
