First Holdco Profit Sinks by 93% after Forbearance Withdrawal

First Holdco Profit Sinks by 93% after Forbearance Withdrawal

First Holdco Plc’s profit plunged 93.36% year-on-year to N44.982 billion in the financial year 2025, from N677.005 billion in 2024, due to weak asset quality.

As part of an effort to exit the Central Bank of Nigeria (CBN) forbearance list following regulatory withdrawal, the non-operating company of First Bank of Nigeria booked higher impairment charges on its loans. 

The charges against the group’s expected credit losses surge by 75% to N748.125 billion in 2025, up from N426.296 billion in the comparable period in 2024 – a singular action that damaged its earnings performance.

This increased the impairment charges-to-loan portfolio ratio following some credit migration to stage 3 loans, denting First Holdco’s asset quality in the financial year 2025.

According to its unaudited financial statement, overall profit for 2025 settled at N44.982 billion from N677.05 billion in the equivalent period in 2024 despite FX loss reversal.

First Holdco reported N1.910 trillion net interest income in 2025, a significant year-on-year increase of 10% from N1.401 trillion the group recorded in 2024.

As a result of weak asset quality, First Holdco increased its impairment charges on expected credit loss by 75% to N748.125 billion in 2025, from N426.294 billion in the financial year 2024. Out of this, N27 million was outrightly written off as bad debt.

The action was taken following the Apex Bank forbearance withdrawal in 2025. Hence, the group’s net interest income reduced sharply to N1.162 trillion after the impairment charge for losses.

Net fee and commission income rose to N290.735 billion at the end of the financial year 2025, up by 19% year-on-year from N244.889 billion in 2024.

First Holdco reversed its FX losses in 2025 due to a significant reduction in foreign exchange trading reevaluation loss and an uptick in currency trading gain.

A review of its numbers indicates that FX revaluation loss reduced sharply by 83% to N16.816 billion from N101.44 billion in 2024. At the time, its FX trading gain rose by 49% year on year to N54.459 billion from N36.494 billion.

Its financials revealed that the group recorded N37.643 billion FX gain, as against N64.945 billion loss posted in the equivalent period in 2024.

Operating profit reduced to N228.37 billion in 2025, from N795.932 billion in the financial year 2024, representing a 71% year on year decline due to a tight operating environment.

The group’s pretax profit shrank to N229.097 billion in 2025. The amount is 71% less impressive compared with N796.467 billion posted in 2024.

With all the strategies deployed, and some businesses chasing, First Holdco delivered N44.982 billion as net income for 2025, down by 93% year on year from N677.005 billion posted in 2024. #First Holdco Profit Sinks by 93% after Forbearance Withdrawal#

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