First Holdco Profit Plunges by 18% in Q1-2025
FBN Holdings now First Holdco Plc.’s net profit fell by about 18% year on year in the first quarter of 2025 as the financial service company’s non-interest income underperformed expectations.
In what appears to be a negative start to the year, the elephant-branded financial company’s key metrics plunge sharply year on year, raising questions about the group’s competitive position among its immediate rivals.
As a result of below-the-belt, non-interest-related earnings, the group’s aggregate revenue struggles to grow compared with its immediate rivals in the financial services industry.
According to details from First Holdco’s unaudited financial statement, gross earnings only grew by 3.3% year-on-year to N729.3 billion from N704.2 billion in the comparable period in 2024.
Net interest income surged by 61% year on year to settle at N365.2 billion from N226.8 billion in the comparable period in 2024. But First Holdco’s non-interest income softened drastically, settling at N104 billion in Q1-2025, down by 60% year-on-year from N260 billion posted in Q1-2024.
A significant increase in operating expenses (OPEX) offset the gains from lower impairment charges, further pressuring net income. Details showed that operating expenses rose by 16.4% year on year to settle at N245.3 billion from N210.8 billion in the equivalent period in 2024.
Despite a sharp moderation in the group tax expenses, profit after fell by 17.9% year on year to N167.4 billion from N208.3 billion in Q1-2024. “The performance was primarily weighed down by a sharp contraction in noninterest revenue, which offset the strong growth recorded in net-interest income, limiting the expansion of gross earnings”, CardinalStone Securities Limited said in its review note.
On the asset quality front, cost-of-risk improved to 1.7%, supported by the 1.31% year-on-year decline in impairment charges on loans and advances, despite an 11.1% YoY increase in gross loans to N9.7 trillion.
On the flip side, the cost-to-income ratio (CIR) climbed to 52.3%, reflecting higher personnel costs, regulatory levies (AMCON and deposit insurance), and increased spending on advertising and promotions.
Overall, the weaker earnings performance resulted in an annualised return on average equity (ROAE) of 24.2%, a sharp drop from 44.5% in Q1-2024. First Holdco’s return on average assets (ROAA) also fell to 2.5% from 4.2% 12 months ago, according to analysts’ notes.
First Holdco Profit Plunges by 18% in Q1-2025 $17bn: Nigeria Positions as World Bank’s Largest Portfolio in Africa
