First HoldCo H1, 2025 Reports 22.3% y/y Decline in Profit

• Boosts income to N1.44trillion

First Holdco Plc has recorded a remarkable decline of 22.3 per cent in its first half year (H1) 2025, reflecting a challenged operating environment which impacted foreign exchange transaction, commission, fees, e-banking and other operating incomes under the non-core income segment of the holding financial group.

First HoldCo Plc (FIRSTHOLDCO) published unaudited H1-25 financials Wednesday, showed a 22.3% y/y decline in profit after tax to NGN283.77 billion which was against NGN365.30 billion recorded in H1- 2024:

The decline was driven by a significant contraction in non-core income as it dipped by -57.4% y/y, which outweighed the impressive growth in core in- come with a record 51.7% y/y growth.

The FIRSTHOLDCO H1, 2025 unaudited result also reported a 15.4% y/y decline in profit before tax to NGN356.15 billion, while profit after tax fell by 22.3% y/y to NGN283.77 billion following a 39.9% increase in tax expenses.

However, financial holding group recorded a 51.7 per cent y/y increase in interest income to NGN1.44 trillion, supported by stronger earnings on loans and advances to customers which soared by 60.0 per cent y/y, advances to banks rose in the period by 13.3% y/y, while investment securities grew by 45.2% y/y.

According to Cordros Securities, the robust growth in investment in securities was attributable to the still elevated yield environment and modest 8.1% YTD expansion in earning assets. The preceding led to an improved earnings yield of 16.5% in H1- 25 (H1-24: 14.1%). Also, the result further showed that FIRSTHOLDCO’s NPL ratio increased to 12.9% (2024FY: 10.2%), indicating the possibility of the reclassification of previously impaired loans under the CBN’s forbearance to Stage 3 loans.

On the funding side, interest expense rose by 23.1% y/y to NGN532.58 billion, reflecting higher funding costs on deposits from financial institutions (+44.4% y/y) and customers (+23.0% y/y). Accordingly, net interest income increased by 75.7% y/y to NGN904.83 billion.