February 2, 2026/Cordros Report
First HoldCo Plc (FIRSTHOLDCO) released its unaudited 2025FY financial results after close of business on Friday (30 January), reporting a steep 94.0% y/y decline in earnings per share to NGN1.09 (2024FY: NGN18.21). The earnings contraction was driven by a sharp drop in non-interest income (-55.2% y/y), a 75.5% y/y spike in credit impairment charges, and significant cost pressures, which collectively outweighed strong core income growth.
FIRSTHOLDCO recorded a 23.6% y/y increase in interest income to NGN2.96 trillion, supported by stronger earnings on loans and advances to customers (+35.9% y/y) and investment securities (+13.2% y/y), reflecting elevated yields through the year. Accordingly, net interest income rose 36.3% y/y to NGN1.91 trillion following the marginal 5.8% y/y increase in interest expense, driven by higher funding costs on deposits from financial institutions (+24.5% y/y) and customers (+7.0% y/y).
However, the core momentum was significantly diluted by credit impairment charges of NGN748.13 billion (+75.5% y/y), stemming from the group’s provisioning efforts to clean up its balance sheet. Consequently, net interest income ex-LLE rose more modestly by 19.2% y/y to NGN1.16 trillion. This dynamic reiterates the HoldCo’s asset quality pressures, with subpar credit creation during the financial year.
Non-interest income declined sharply by 55.2% y/y to NGN338.66 billion, reflecting the absence of prior year one-off revaluation gains. The preceding overshadowed higher gains from investment securities (+210.9% y/y), net fees and commissions (+18.7% y/y), and FX trading (+49.2% y/y). Consequently, operating income fell by 13.3% y/y to NGN1.50 trillion.
Operating expenses rose 36.1% y/y to NGN1.27 trillion due to higher costs on advert & corporate promotions (+146.7% y/y), personnel (+25.1% y/y), AMCON (+51.4% y/y), NDIC premium (+42.1% y/y) and maintenance (+12.7% y/y). Thus, the group’s cost-to-income ratio deteriorated to 56.5% (2024FY: 43.3%).
Overall, FIRSTHOLDCO reported a 71.2% y/y decline in profit before tax to NGN229.10 billion, while profit after tax fell 92.0% y/y to NGN52.75 billion following a 32.6% increase in tax expenses.
Comment: The group’s underlying core performance remained resilient, supported by disciplined funding cost control. However, profitability deteriorated materially as First HoldCo significantly increased provisioning in response to asset quality pressures. This was further compounded by the absence of FX revaluation gains and sustained cost pressures, resulting in a contraction in earnings. For 2026FY, we expect core income to remain the anchor of the group’s gross earnings, while the expectations of lower provisioning and an improved non-core profile will lead to profitability expansion. Our estimates are under review.
