According to the FY:2024 financial report released by First HoldCo Plc, the bank delivered an EPS of NGN18.69, 117.58% YoY higher than what was recorded in FY:2023, reflecting a remarkable financial performance in the review period. This essentially stemmed from the substantial increase in top line, as gross earnings reached NGN3.21trn at the end of 2024, compared to NGN1.56trn in 2023, enhanced by both interest and non-interest income.

Specifically, interest income expanded by 155.95% YoY to NGN2.40trn in FY:2024, reflecting the high yield environment seen in the financial period amidst the aggressive policy stance by the central bank of Nigeria. Thus, the bank earned higher income from loans and advances (+135.05% YoY to NGN1.55trn) and investment securities (+205.33% YoY to NGN850.46trn). In the same vein, interest expense grew by 155.16% YoY to NGN996.12bn in 2024; however, net interest income witnessed an increase of 156.51% from the previous year to NGN1.40trn.

Going forward, we expect the bank to continue expanding its asset base in 2025 given our projection of 25.00% growth in total asset to NGN33.16trn, slightly below historical average of 38.00% in the past five years. We expect this to be driven by further expansion in the loan book, coupled with higher securities holdings, as the bank sought to improve interest income.

Additionally, we expect non-interest income to propel earnings amidst our expectation for higher fee and commission income, as well as fair value gains. Hence, we hold a STRONG BUY recommendation on the ticker.

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