First HoldCo Plc, Nigeria’s most diversified financial services group, has reported a resilient half-year performance marked by an 18.1% year-on-year increase in gross earnings to ₦1.66 trillion for the period ended June 30, 2025. This was largely driven by a substantial 75.7% surge in net interest income, which soared to ₦904.8 billion from ₦514.9 billion recorded in the same period last year.
Despite the uptick in core banking income, FirstHoldCo’s bottom line came under pressure as profit before tax declined by 13.6% to ₦356.1 billion, weighed down by a sharp drop in non-interest income and a near doubling of impairment charges. Profit after tax slid 20.7% to ₦289.8 billion, reflecting the impact of the absence of extraordinary FX gains booked in H1 2024 and proactive provisioning to address forborne loans.
Group Managing Director Adebowale “Wale” Oyedeji attributed the performance to the company’s strategic resilience. “FirstHoldCo has once again demonstrated its tenacity amid a challenging macroeconomic backdrop,” he said. “We continue to strengthen our balance sheet while positioning ourselves for long-term, sustainable value creation.”
The Group’s interest income grew 51.7% year-on-year to ₦1.44 trillion, benefitting from improved asset yields and effective pricing strategies. This compensated for the steep 56.5% decline in non-interest income, which fell to ₦189.4 billion due to the normalization of prior-year FX windfalls.
Operating income rose 15.1% to ₦1.09 trillion, but operating expenses grew even faster—up 24.0% to ₦552.8 billion—resulting in a cost-to-income ratio of 50.5%, a deterioration from 46.9% in H1 2024.
Impairment charges nearly doubled to ₦185.4 billion, as the Group took further steps to shore up asset quality ahead of the full resolution of its legacy forbearance portfolio by year-end 2025.
FirstHoldCo’s total assets rose 2.5% year-to-date to ₦27.2 trillion, while customer deposits grew 4.2% to ₦17.9 trillion. Net loans and advances inched up 1.1% to ₦8.9 trillion. However, asset quality weakened slightly, with the Group’s non-performing loan (NPL) ratio rising to 12.9%, up from 10.2% in December 2024, while NPL coverage declined to 38.8%.
Despite this, key financial metrics remained robust. Net interest margin expanded to 10.4% from 7.7% a year ago, while earnings yield improved to 16.5%. Post-tax return on equity moderated to 20.2% from an elevated 36.9% in H1 2024.
Looking ahead, Oyedeji said the Group is prioritising the recapitalisation of FirstBank ahead of the March 2026 regulatory deadline, completing the resolution of forbearance loans, and accelerating digital transformation and customer experience initiatives.
“We are committed to our strategic goals and confident in our ability to deliver optimal value to shareholders,” he affirmed.
An investor conference call is scheduled for August 4, 2025, to provide further insights into the Group’s H1 performance.
