In a significant move, First HoldCo Plc has announced its unaudited financial results for the year ended December 31, 2025, showcasing a year defined by deliberate strategic actions aimed at strengthening its balance sheet.

In addition, it was also aimed at improving asset quality, and positioning the Group for more resilient and sustainable growth, even as it successfully executed capital raise activities.

So, throughout the year, management consciously took bold decisions to reinforce transparency, strengthen fundamentals, and prepare the business for long-term value creation amid a challenging operating environment.

 

Gross Earnings Rise as Core Revenue Strengthens

According to the unaudited Group financial statement, First HoldCo recorded a 4.8 percent year-on-year increase in gross earnings, rising to N3.4 trillion.

Moreover, this performance was driven by a robust 36.3 percent year-on-year growth in net interest income, which climbed to N1.9 trillion on the back of enhanced earnings yield and improved margins of 17.11 percent and 11.0 percent, respectively.

Again, net fees and commissions increased by 18.7 percent year-on-year to N290.7 billion, reinforcing the solid revenue-generating capacity of the Group’s core business.

Together, these metrics highlight the resilience and underlying strength of First HoldCo’s operating franchise.

 

Deliberate Impairment Strategy Weighs on Profit

Meanwhile, despite the strong revenue performance, earnings for the year declined compared to the prior year.

Notably, this outcome primarily reflected higher impairment charges in the commercial banking segment, a result of a conscious and strategic decision by management to accelerate balance sheet clean-up and adopt more aggressive provisioning standards.

Therefore, management views this approach as a prudent move that enhances transparency, strengthens investor confidence, and aligns fully with evolving regulatory expectations, even though it temporarily weighed on reported profitability.

 

Regulatory Costs Reflect Compliance Commitment

In a similar vein, and in addition to impairment charges, increased regulatory costs also affected profitability.

While these costs exerted pressure on results, they underscored the Group’s strict adherence to Nigeria’s financial system stability framework and its commitment to sustaining systemic confidence. Importantly, despite these headwinds, the underlying performance of the Group remained strong.

 

Deposit Growth Signals Customer Confidence

Deposit liabilities grew by 10.0 percent year-on-year, supported by sustained deposit mobilisation and continued investments in digital banking platforms. This growth reflected strong customer confidence and deeper engagement across key customer segments.

At the same time, the deposit mix showed a deliberate reduction in foreign currency deposits. This resulted from the repayment of expensive funding and the impact of naira appreciation, a shift that improved funding efficiency and reduced foreign exchange risk.

 

Disciplined Credit Growth Enhances Asset Quality

Gross loans and advances declined marginally during the year, reflecting a disciplined approach to credit growth. This trend was driven by strengthened risk management, loan repayments, write-offs, and the translation impact of a stronger naira on foreign currency facilities.

Through these actions, the Group intensified its focus on building a cleaner, higher-quality asset base, with the aim of optimising the loan portfolio and enhancing future earnings potential.

 

Non-Interest Income Pressures Partially Offset

Earnings performance was also influenced by a decline in non-interest income, mainly due to lower fair value gains on financial instruments following the naira appreciation in 2025. However, stronger foreign exchange trading income and reduced FX revaluation losses partially offset this impact.

Meanwhile, net fees and commission income continued to grow, supported by higher electronic banking fees, letters of credit commissions, custodian fees, and account maintenance income. This trend reflected the sustained success of the Group’s digital innovation strategy.

Core Operating Strength Remains Evident

While impairment charges increased following the end of regulatory forbearance, management responded by intensifying recovery initiatives and reinforcing credit oversight. Notably, excluding impairment and fair value gains, pre-provision operating profit rose by 23.9 percent year-on-year to N973.3 billion, demonstrating the robust performance of the core business.

Beyond the commercial banking impairments, performance across the rest of the Group remained resilient, supported by steady customer activity and disciplined execution.

 

Outlook: Focus on Efficiency, Innovation and Selective Growth

Looking ahead, First HoldCo will continue to prioritise disciplined execution of its strategic objectives, with a strong emphasis on enhancing efficiency and profitability. The Group will also build further on its digital and data capabilities while sustaining a robust balance sheet to support increased value creation and returns for shareholders.

In addition, management plans to pursue selective growth initiatives, including new revenue streams, additional business verticals, and deeper participation in targeted African markets, all in line with the Group’s strategy and defined risk appetite.

Next Steps

Further details and deeper insights will be provided when the audited full-year results are released and during the subsequent investor and analyst earnings call.