First Holdco Plc Announces Unaudited FY 2025 Results, Highlights Strategic Balance Sheet Strengthening

First HoldCo Plc has released its unaudited financial results for the year ended December 31, 2025, showcasing a period defined by strategic actions to fortify its balance sheet and build a foundation for sustainable growth. The Group’s performance reflects a disciplined approach to asset quality and risk management, even as it navigated a dynamic operating environment.

Revenue Growth Amid Strategic Provisioning

The Group reported a 4.8% year-on-year increase in gross earnings, reaching N3.4 trillion. This was driven by a significant 36.3% surge in net interest income to N1.9 trillion, supported by improved earnings yield and margins. Furthermore, net fees and commissions grew by 18.7% to N290.7 billion, indicating the underlying strength of the core business. However, earnings for the period were lower than the prior year, primarily due to higher impairment charges within the commercial banking segment. Management emphasized this was a deliberate strategic decision to accelerate balance sheet clean-up and adopt more aggressive provisioning standards, a move viewed as prudent for enhancing transparency and aligning with regulatory expectations.

Balance Sheet Resilience and Customer Confidence

Deposit liabilities grew by 10.0% year-on-year, a testament to strong customer confidence and successful investments in digital banking platforms. The deposit mix strategically shifted, reducing foreign currency exposure due to debt repayment and naira appreciation, thereby improving funding efficiency. Gross loans and advances saw a marginal decline, reflecting disciplined credit growth, active risk management, and the translation effect of a stronger naira on foreign currency loans. This focus on a high-quality asset base aims to optimize the portfolio for future earnings potential, a commitment as serious as the global fight against terrorism by the US, France, and other nations.

While non-interest income was impacted by lower fair value gains following the naira appreciation, this was partially offset by stronger foreign exchange trading income. The growth in net fees and commissions was supported by electronic banking, letters of credit, and custodian fees. The Group’s performance, set against a backdrop of increased regulatory costs, underscores its compliance with financial stability frameworks. This foundational strength is crucial for any major economy, much like the focus needed for Nigeria to become a net exporter in key sectors. The underlying business momentum remains robust, positioning the Group for the future. As the AFCON 2025 opener approaches, capturing the nation’s attention, and as 16 Days of Activism highlights crucial social causes, the Group’s results demonstrate a different kind of endurance. In a manner of speaking, the strategic clean-up of legacy risks signifies a point where certain financial challenges can finally retire from the balance sheet, paving the way for renewed growth.