First HoldCo Plc has released its unaudited financial results for the year ended 31 December 2025, highlighting a period marked by strategic steps to reinforce its balance sheet, enhance asset quality, and position the Group for more sustainable long-term growth following successful capital-raising activities.
According to the Group’s unaudited financial statement, gross earnings rose by 4.8 percent year-on-year to N3.4 trillion. The performance was supported by a 36.3 percent increase in net interest income to N1.9 trillion, driven by improved earnings yield and margins of 17.11 percent and 11.0 percent, respectively.
Net fees and commissions also climbed 18.7 percent year-on-year to N290.7 billion, reflecting the continued strength of the Group’s core revenue streams.
Despite the growth in earnings, profit for the year declined compared to the previous year, largely due to higher impairment charges within the commercial banking business. The Group said this reflects a deliberate strategy to accelerate balance sheet clean-up and adopt more conservative provisioning standards. Management described the move as a prudent step to improve transparency, strengthen investor confidence, and align with evolving regulatory expectations.
Profitability was also affected by higher regulatory costs. Although these charges weighed on performance, the Group noted they demonstrate compliance with Nigeria’s financial system stability requirements and its commitment to maintaining confidence in the banking system. Underlying operations, however, remained solid.
Customer deposits increased by 10.0 percent year-on-year, supported by sustained deposit mobilisation and continued investment in digital banking channels. The Group said this growth signals strong customer confidence and deeper engagement across its key markets. The deposit mix also shifted, with a reduction in foreign currency deposits following the repayment of high-cost funding and the impact of naira appreciation, helping to improve funding efficiency and lower foreign exchange exposure.
Gross loans and advances declined slightly, reflecting a cautious credit growth strategy, tighter risk management, loan repayments, write-offs, and the translation effects of a stronger naira on foreign currency loans. The Group said it remains focused on maintaining a high-quality loan portfolio to support future earnings.
Non-interest income came under pressure, mainly due to lower fair value gains on financial instruments following the naira’s appreciation during the year. This was partly offset by stronger foreign exchange trading income and reduced FX revaluation losses. Growth in net fees and commissions was driven by higher electronic banking charges, letters of credit commissions, custodian fees, and account maintenance income, underlining the impact of the Group’s digital innovation efforts.
Following the end of regulatory forbearance, impairment charges rose, but management said recovery efforts have been intensified alongside stronger credit monitoring. Excluding impairment charges and fair value gains, pre-provision operating profit grew by 23.9 percent year-on-year to N973.3 billion, demonstrating the strength of the core business. Other segments of the Group outside commercial banking showed resilient performance, supported by steady customer activity and disciplined execution.
Looking ahead, First HoldCo said it will continue to focus on disciplined delivery of its strategic priorities, improving efficiency and profitability, expanding digital and data capabilities, and maintaining a strong balance sheet to drive value for shareholders. The Group also plans to pursue selective growth opportunities, including new revenue lines, additional business segments, and deeper participation in targeted African markets in line with its strategy and risk appetite.
Further details are expected when the audited full-year results are released, alongside insights from the Group’s investor and analyst earnings call.
