First HoldCo has reported a sharp drop in profitability for the 2025 financial year, posting a full-year profit of N44.98bn, representing a 93.4 per cent decline from the N677.01bn recorded in 2024.
The financial services group’s audited results for the year ended 31 December 2025 also showed that profit attributable to owners of the parent fell to N38.04bn, down 94.3 per cent from N670.80bn in the previous year.
The steep decline was largely driven by a one-time impairment charge taken in the fourth quarter, which pushed the group into a Q4 loss of N405.89bn, compared with a profit of N143.13bn in the same period of 2024. This represents a 383.6 per cent negative swing year-on-year and wiped out much of the earnings recorded earlier in the year.
Reacting to the results, the Group Chairman of First Bank Holdings, Mr Femi Otedola, had earlier defended the decision to take a N748bn one-off charge to clean up legacy non-performing loans. In a statement posted on his X handle over the weekend, the billionaire businessman described the move as a strategic step toward long-term stability, aligned with the Central Bank of Nigeria’s directive for banks to transparently address bad loans rather than defer them.
Despite the pressure on bottom-line performance, the group recorded strong growth in core income lines. Interest income rose by 23.6 per cent to N2.96tn, from N2.40tn in 2024, supported by growth in interest-earning assets and improved yields. However, interest expense increased by 5.8 per cent to N1.05tn, narrowing the benefit of higher interest income.
As a result, net interest income grew by 36.3 per cent to N1.91tn, compared with N1.40tn in the prior year. This improvement was significantly offset by a sharp rise in credit risk provisions, as impairment charges surged by 75.4 per cent to N748.13bn, from N426.29bn in 2024.
After impairment charges, net interest income stood at N1.16tn, up 19.2 per cent from N975.02bn a year earlier.
Non-interest income performance was mixed. Net fee and commission income increased by 18.7 per cent to N290.74bn, from N244.89bn, reflecting higher transaction volumes and growth in electronic banking activities.
Trading income, however, remained volatile. The group recorded a foreign exchange gain of N37.64bn, compared with a loss of N64.95bn in 2024. At the same time, losses on financial instruments at fair value through profit or loss widened to N87.06bn, from a gain of N549.99bn in the previous year.
Operating expenses also rose sharply, reflecting inflationary pressures and higher regulatory and operating costs. Personnel expenses increased by 25.1 per cent to N385.91bn, while other operating expenses climbed by 43.6 per cent to N809.36bn. Consequently, operating profit fell by 71.3 per cent to N228.37bn, from N795.93bn in 2024.
The group further recorded a loss of N7.77bn from discontinued operations, compared with a profit of N13.52bn in the prior year.
On the balance sheet, total assets grew by 2.0 per cent to N27.07tn, from N26.52tn in 2024. Loans and advances to customers rose by 3.4 per cent to N9.06tn, while customer deposits increased by 10.0 per cent to N18.90tn, indicating continued balance-sheet expansion.
Despite the steep fall in profit, total equity increased by 14.9 per cent to N3.21tn, from N2.80tn in the previous year, supported by fair value gains and retained earnings.
