October 31, 2025/Cordros Report

First HoldCo Plc (FIRSTHOLDCO) published its unaudited 9M-25 results, reporting a 27.3% y/y dip in EPS to NGN10.65 (9M-24: NGN14.64). The preceding was buoyed by the 49.1% y/y decline in the HoldCo’s non-interest income.

Interest income rose 40.4% y/y to NGN2.29 trillion, driven by stronger returns on loans to customers (+59.4% y/y) and investment securities (+33.7% y/y), reflecting the impact of the elevated yield environment and moderate loan book expansion (+9.0% YTD).

However, interest expense increased slightly by 4.3% y/y to NGN791.80 billion, supported by lower funding costs from financial institutions (-13.7% y/y), even as customer deposit costs rose (+15.8% y/y). Consequently, net interest income grew 71.7% y/y to NGN1.50 trillion, while net interest income ex-LLE advanced 72.5% y/y to NGN1.21 trillion despite a 68.6% y/y rise in credit impairment charges.

Non-interest income declined sharply by 49.1% y/y to NGN297.55 billion due to the fair value loss of NGN98.57 billion recorded in the period (9M-24: NGN538.25 billion). Nonetheless, fee and commission income grew by 24.7% y/y, and investment securities gains increased more than threefold (+208.8% y/y).

On the cost side, operating expenses rose 39.3% y/y to NGN942.67 billion, driven by higher advert (+175.0% y/y), personnel (+37.3% y/y), maintenance (+25.0% y/y), and AMCON (+40.6% y/y) costs.

Profit before tax (PBT) declined by 7.3% y/y to NGN566.54 billion, and PAT fell 13.0% y/y to NGN458.08 billion, owing to higher taxes (+28.2% y/y).

Comment: FIRSTHOLDCO delivered solid underlying performance supported by the group’s robust funded income. However, weak non-core income and elevated operating expenses remain headwinds to profitability, and we expect this to weigh on earnings momentum in Q4-25. Our estimates are under review.