First HoldCo Plc posted a ₦405.89 billion fourth-quarter loss in 2025 as rising impairment charges and higher operating costs erased gains from interest income and fees.
Earnings Overview
For the 2025 financial year, First HoldCo reported a profit after tax of ₦44.98 billion, a steep decline from ₦677.01 billion recorded in 2024.
Profit attributable to shareholders fell to ₦38.04 billion, compared with ₦670.80 billion in the prior year, reflecting pressure across core banking operations.
The group posted a loss of ₦405.89 billion in Q4 2025, reversing the ₦143.13 billion profit recorded in the corresponding quarter of 2024.
The weak quarterly performance was driven primarily by elevated impairment charges and weaker trading income.
Interest Income and Margin Pressure
Interest income rose to ₦2.96 trillion in 2025 from ₦2.40 trillion in 2024, supported by asset growth and higher yields. However, interest expense also increased to ₦1.05 trillion, up from ₦996.12 billion.
Net interest income improved to ₦1.91 trillion, compared with ₦1.40 trillion in the prior year. Despite this growth, heavy provisioning eroded earnings with impairment charges for credit losses rising sharply to ₦748.13 billion from ₦426.29 billion in 2024.
As a result, net interest income after impairment stood at ₦1.16 trillion, higher than ₦975.02 billion in 2024, but insufficient to offset rising costs and weaker non-interest income.
Non-Interest Income Performance
Net fee and commission income increased to ₦290.74 billion, up from ₦244.89 billion in 2024, supported by transaction-driven income and service fees.
Foreign exchange performance remained volatile. The group recorded a ₦34.30 billion FX loss in Q4 2025, while full-year FX income stood at ₦37.64 billion, reversing the ₦64.95 billion FX loss recorded in 2024.
Investment income was mixed. Net gains on sale of investment securities rose to ₦53.32 billion, compared with a ₦48.06 billion loss in the prior year.
However, losses from financial instruments at fair value through profit or loss widened to ₦87.06 billion from a ₦549.99 billion gain in 2024.
Cost Structure and Operating Profit
Operating expenses expanded materially. Personnel costs rose to ₦385.91 billion, while other operating expenses climbed to ₦809.36 billion, reflecting inflationary pressures and higher regulatory and technology-related costs.
Consequently, the group reported an operating profit of ₦228.37 billion for 2025, a sharp decline from ₦795.93 billion in 2024.
In the fourth quarter alone, operating profit swung to a loss of ₦337.54 billion, compared with a ₦185.47 billion profit in Q4 2024.
Profitability and EPS
Profit before tax fell to ₦229.10 billion, down from ₦796.47 billion a year earlier. After tax, profit from continuing operations stood at ₦52.75 billion, compared with ₦663.49 billion in 2024.
Including discontinued operations, profit for the year declined further to ₦44.98 billion. Earnings per share dropped sharply to ₦0.91, from ₦18.59 recorded in the previous year, underscoring the scale of earnings compression.
Holding Company Performance
At the holding company level, performance was more stable. First HoldCo Plc recorded a profit after tax of ₦42.30 billion in 2025, up from ₦26.22 billion in 2024, supported by dividend income of ₦26.24 billion and gains from restructuring activities, including subsidiary disposals.
Outlook
First HoldCo’s 2025 results highlight the impact of aggressive provisioning, weaker trading income, and rising operating costs on group profitability. While interest income and fee-based revenue showed resilience, earnings remain highly sensitive to asset quality trends, market volatility, and cost discipline.
The group’s ability to stabilise credit quality and rebuild non-interest income streams will be critical to earnings recovery in 2026.
