First HoldCo reports resilient first half in 2025, balancing growth in core income

First HoldCo Plc, the holding company of First Bank, has released its unaudited financial results for the six months ending June 30, 2025, highlighting steady progress in key performance areas despite some profitability setbacks.

The group recorded a year-on-year rise of 18.1% in gross revenue, reaching ₦1.66 trillion compared to ₦1.4 trillion during the same period in 2024. This increase was largely driven by a significant surge of 51.7% in interest income, which climbed to ₦1.4 trillion from ₦947.7 billion last year. Similarly, net interest income showed robust momentum, jumping 75.7% to ₦904.8 billion from ₦514.9 billion.

Non-Interest Income and Impairment Charges Pressure Earnings

However, the earnings mix revealed some soft spots. Non-interest income plummeted by 56.5% to ₦189.4 billion, down from ₦435.7 billion, reflecting reduced trading and fee-based activities. At the same time, impairment charges nearly doubled, rising 99.4% to ₦185.4 billion from ₦93 billion—indicating a more cautious stance toward credit risk and loan portfolio quality.

Operating Expenses Outpace Income Growth

While overall operating income expanded by 15.1% to ₦1.09 trillion, the group’s operating costs also grew substantially, up 24% to ₦552.8 billion from ₦445.7 billion. These increased expenses weighed on bottom-line performance.

Profitability Declines Despite Asset Growth

Pre-tax profit slipped by 13.6% to ₦356.1 billion, down from ₦412 billion in the same period last year. Net earnings fell even further, declining 20.7% to ₦289.8 billion from ₦365.3 billion.

Slight Increase in Assets and Deposits

On the balance sheet side, total assets saw a marginal uptick of 2.5%, standing at ₦27.2 trillion compared to ₦26.5 trillion in December 2024. Customer deposits also edged higher by 4.2% to ₦17.9 trillion.

Leadership Comments and Forward Strategy

Group Managing Director Adebowale Oyedeji commented on the half-year outcome, noting: “We delivered ₦1.7 trillion in gross earnings, fueled by strong growth in net interest income. This shows our strength in capturing yield opportunities amid a dynamic macro environment.”

He attributed the decline in profit before tax to the fading of extraordinary foreign exchange gains recorded last year and increased provisions to address legacy loan exposures.

“Moving forward,” he added, “our key objectives include strengthening our revenue streams, ensuring FirstBank meets recapitalization targets ahead of the March 2026 deadline, and fully resolving all forbearance loans before year-end 2025.”

Oyedeji emphasized the Group’s commitment to its long-term strategy, stating that management remains focused on delivering sustainable value to shareholders despite short-term headwinds.