First HoldCo Plc has released its unaudited financial results for the year ended December 31, 2025, reporting a 4.8% year-on-year increase in gross earnings to N3.4 trillion, as the Group executed strategic actions to strengthen its balance sheet, improve asset quality, and position the business for more resilient and sustainable growth.
According to the unaudited Group financial statements, the earnings growth was driven by strong core banking performance, supported by improved margins and enhanced earnings yields. Net interest income rose by 36.3% year-on-year to N1.9 trillion, reflecting higher asset yields and improved pricing discipline. The Group recorded earnings yield and net interest margin of 17.11% and 11.0%, respectively.
Net fees and commissions also grew strongly, increasing by 18.7% year-on-year to N290.7 billion. Management said the growth reflects the strength of the Group’s revenue-generating capacity, particularly from electronic banking, trade-related services, and transaction-based income, underscoring the continued success of its digital and innovation strategy.
Despite the solid revenue performance, profit for the year was lower than the prior year, largely due to significantly higher impairment charges in the commercial banking segment. The Group said this reflects a deliberate strategic decision to accelerate balance sheet clean-up and adopt more conservative provisioning standards following the end of regulatory forbearance.
Management described the move as a prudent step aimed at enhancing transparency, strengthening investor confidence, and aligning fully with evolving regulatory expectations. The Group also noted that increased regulatory costs weighed on profitability, reflecting its compliance with Nigeria’s financial system stability framework and its commitment to maintaining systemic confidence.
Deposit liabilities grew by 10.0% year-on-year, supported by sustained deposit mobilisation and continued investment in digital banking platforms. The growth reflects strong customer confidence and deeper engagement across key retail, SME, and corporate segments.
The Group also reported a deliberate reduction in foreign currency deposits, driven by the repayment of more expensive funding and the impact of naira appreciation. This shift, according to management, supports improved funding efficiency and reduces foreign exchange risk on the balance sheet.
Gross loans and advances declined marginally during the year, reflecting a disciplined approach to credit growth, improved risk management, loan repayments, write-offs, and the translation impact of a stronger naira on foreign-currency-denominated facilities. The Group said it intensified efforts to build a higher-quality and cleaner asset base, with the aim of optimising the loan portfolio and enhancing future earnings potential.
Non-interest income declined during the year, mainly due to lower fair value gains on financial instruments following naira appreciation in 2025. However, this was partially offset by stronger foreign exchange trading income and reduced FX revaluation losses.
Net fees and commission income growth was supported by higher electronic banking fees, letters of credit commissions, custodian fees, and account maintenance income. Management said this reflects continued momentum in its digital banking and transaction services strategy.
While impairment charges increased, the Group said it has intensified recovery initiatives and strengthened credit oversight. Excluding impairment charges and fair value gains, pre-provision operating profit grew by 23.9% year-on-year to N973.3 billion, highlighting the robust underlying performance of the core business.
Outside the commercial banking impairments, performance across other business segments remained resilient, supported by steady customer activity and disciplined execution of strategic priorities.
Looking ahead, First HoldCo said it will continue to prioritise disciplined execution of its strategic objectives, with a focus on enhancing efficiency and profitability, strengthening digital and data capabilities, and maintaining a robust balance sheet to support value creation for shareholders.
The Group also plans to pursue selective growth initiatives, including new revenue streams, additional business verticals, and deeper participation in targeted African markets, in line with its strategy and risk appetite.
Management said further details and insights will be provided when the audited full-year results are released and during the subsequent investor and analyst earnings call.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
