First HoldCo Plc has released its unaudited financial results for the year ended 31 December 2025, highlighting a year of strategic decisions focused on strengthening its balance sheet, improving asset quality, and positioning the Group for more resilient and sustainable growth, supported by successful capital-raising activities.
Newsonspot reports that according to the unaudited Group financial statement, gross earnings rose by 4.8% year-on-year to N3.4 trillion, driven by improved revenue performance across key business lines.
The Group recorded a strong 36.3% year-on-year increase in net interest income to N1.9 trillion, supported by enhanced earnings yield and improved margins of 17.11% and 11.0%, respectively. In addition, net fees and commissions grew by 18.7% to N290.7 billion, reflecting continued strength in the core revenue-generating business.
Despite the growth in income, overall earnings declined compared to the prior year, mainly due to higher impairment charges in the commercial banking segment. The Group explained that this was the result of a deliberate decision to accelerate its balance sheet clean-up and adopt more aggressive provisioning standards.
Management described the move as a prudent approach aimed at improving transparency, boosting investor confidence, and aligning with evolving regulatory expectations. Profitability was also affected by higher regulatory costs, reflecting the Group’s commitment to compliance and financial system stability.
Deposits Rise as Customer Confidence Grows
First HoldCo recorded a 10.0% year-on-year growth in deposit liabilities, driven by sustained deposit mobilisation and continued investment in digital banking platforms. The Group said the growth highlights strong customer confidence and deeper engagement across key segments.
The deposit structure also showed a deliberate decline in foreign currency deposits, following the repayment of expensive funding and the impact of naira appreciation. This shift, according to the Group, improves funding efficiency and reduces foreign exchange exposure.
Disciplined Credit Growth and Cleaner Asset Base
Gross loans and advances declined slightly, reflecting a disciplined credit strategy supported by stronger risk management, loan repayments, write-offs, and the translation impact of a stronger naira on foreign currency facilities.
The Group noted that it is intensifying efforts to maintain a cleaner and higher-quality asset base, with the goal of optimising the loan portfolio and strengthening future earnings potential.
Digital Banking Supports Fees and Commission Growth
Performance was also impacted by lower non-interest income, largely due to reduced fair value gains on financial instruments following naira appreciation in 2025. However, this was partly offset by stronger FX trading income and reduced FX revaluation losses.
Net fees and commission income recorded growth, supported by higher electronic banking fees, letters of credit commissions, custodian fees, and account maintenance income — reflecting the continued success of the Group’s digital innovation strategy.
Core Operating Profit Remains Strong
While impairment charges increased following the end of regulatory forbearance, the Group said it has intensified recovery initiatives and reinforced credit oversight.
Excluding impairment and fair value gains, pre-provision operating profit rose by 23.9% year-on-year to N973.3 billion, underscoring the strong performance of its core business operations.
Outlook
First HoldCo stated that it will continue to focus on disciplined execution of its strategic priorities, with emphasis on improving efficiency and profitability, expanding digital and data capabilities, and maintaining a robust balance sheet to deliver increased value for shareholders.
The Group also plans to pursue selective growth opportunities, including new revenue streams, additional business verticals, and deeper participation in targeted African markets, in line with its strategy and risk appetite.
More details are expected when the audited full-year results are released and during the Group’s investor and analyst earnings call.
