FirstHoldco Profit Plunges as Credit Impairment Charge Spikes
FirstHoldco Plc reported a sharp decline in profitability in the first half of 2025 as the financial service company struggled with asset quality with a sharp year-on-year decline in its non-interest income line.
Details from its audited financial statement showed that First Holdco, which warehoused Nigeria’s oldest bank, posted more than a 22% year-on-year decline in after-tax profit, N283.77 billion, at the end of the first half of 2025 operation, from N365.30 billion in the comparable period in 2024.
At the topline, gross earnings expanded by 16.8% year-on-year to N1.626 trillion from N1.392 trillion the financial services group delivered in the equivalent period in 2024. Net interest income rose sharply, supported by a high interest rate environment in Nigeria, while related expenses grew at a slow pace.
Its financial results revealed that net income climbed by 75.7% year-on-year from N514.93 billion to N904.83 billion because interest income rose by 51.7% while interest expenses increased by 23.1%.
But a more than 99% increase in its credit impairment charges against income statemenet damaged FirstHoldco’s earnings performance, reflecting its weak asset quality amidst the end of Central Bank forbearance. Analysts said the group’s higher provisioning was primarily due to its plan to exit the CBN’s forbearance regime.
FirstHoldco took N185.40 billion as an impairment charge on loans in the period, which was 99.4% higher than N92.99 billion charged in the equivalent period in 2024. First Holdco reported a sharp year-on-year decline in non-interest income as commercial banks compete on flexibilities and tech innovations across channels.
Its non-interest income fell by 57.4% year-on-year to N189.55 billion from N444.71 billion in the comparable period in 2024. This decline was driven by fair value losses of N69.71 billion, compared to the gain of N478.78 billion in the prior period.
MarketForces Africa review showed the First Holdco operating income growth fell behind a sharp increase in its operating expenses. Based on the result, First Holdco operating income grew by 4.9% year o-on-yearo N908.98 billion from N866.66 billion at the end of first half in 2024.
In comparison, operating expenses surged by a whopping 4% year-on-year to settle at N552.83 billion from N445.69 billion in the equivalent period in 2024. This underwhelming performance left First Holdco high and dry, with pre-tax profit dropping to N356.15 billion half way to 2025 year-end, from N420.97 billion in H1-2024.
With about a 40% surge in tax expenses, the First Holdco net income plunged by 22.3% year-on-year to N283.77 billion from N365.30 billion in 2024…which was a better year for the elephant-branded financial services company. #FirstHoldco Profit Plunges as Credit Impairment Charge Spikes IMF Estimates 3% Global Economic Growth Rate for 2025
