First HoldCo Plc (FirstHoldCo) posted a sharp 20.7 per cent drop in profit after tax to N289.8 billion for the half year ended 30 June 2025, despite reporting an 18 per cent rise in gross earnings to N1.66 trillion on the back of higher interest income.
Profit before tax fell 13.6 per cent to N356.1 billion, pressured by a 99.4 per cent jump in impairment charges to N185.4 billion and the absence of foreign exchange gains that boosted last year’s performance. Non‑interest income also collapsed by 56.5 per cent to N189.4 billion, dragging overall profitability.
While net interest income surged 75.7 per cent to N904.8 billion and operating income rose 15.1 per cent to N1.09 trillion, operating expenses accelerated 24 per cent to N552.8 billion, pushing the cost‑to‑income ratio higher to 50.5 per cent from 46.9 per cent a year earlier.
Asset quality weakened further, with non‑performing loans rising to 12.9 per cent of gross loans from 10.2 per cent in December 2024, while NPL coverage slipped to 38.8 per cent. Return on equity halved to 20.2 per cent from 36.9 per cent, and return on assets declined to 2.2 per cent.
Total assets edged up 2.5 per cent to N27.2 trillion, driven by a 4.2 per cent growth in deposits to N17.9 trillion and a 1.1 per cent rise in loans to N8.9 trillion.
Group Managing Director Adebowale (Wale) Oyedeji acknowledged the challenging operating environment and pledged to address asset quality issues, recapitalise FirstBank ahead of the March 2026 deadline, and resolve forbearance loans by year‑end while accelerating digital and operational reforms to stabilise earnings.
