First HoldCo Gross Earnings Hit ₦1.7 Trillion in H1 2025, Despite Profit Decline

BY Rachel Akper
July 31, 2025
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First Bank of Nigeria’s parent company, First HoldCo Plc, has announced gross earnings of ₦1.7 trillion for the first half of 2025, representing a strong year-on-year growth driven by robust interest income and increased lending activity.

The group’s financial results, released this week, show that interest income surged to ₦1.43 trillion, supported by a ₦1.1 trillion expansion in customer loans and higher returns on investment securities. Fee and commission income also contributed ₦168.6 billion, reinforcing the group’s core revenue streams.

However, despite the rise in earnings, profit before tax declined to ₦356.2 billion during the six-month period. The drop is attributed to a significant increase in impairment charges more than doubling year-on-year as the group adjusted to new prudential guidelines issued by the Central Bank of Nigeria (CBN).

In its Q1 2025 segment report, First HoldCo had already signaled tightening margins. Profit after tax dropped 17.8% to ₦171.1 billion, largely due to a 60% plunge in non-interest income and a 16.4% rise in operating expenses. Nonetheless, net interest income rose by 61% to ₦365.2 billion, highlighting the resilience of the group’s lending operations amid macroeconomic challenges.

First HoldCo’s total assets increased to ₦27.2 trillion as of June 30, 2025, up from ₦26.5 trillion in March. Shareholders’ equity also strengthened to ₦2.95 trillion, reflecting improvements in capital adequacy and retained earnings.

Group Managing Director of First HoldCo, Sir Adebowale “Wale” Oyedeji, commented on the results, stating that the group remains focused on driving sustainable earnings, improving efficiency, and complying with evolving regulatory frameworks. “We are making strategic adjustments to preserve long-term profitability while deepening our customer engagement across retail and corporate banking,” he said.

The company, which continues to operate Nigeria’s oldest commercial banking institution through First Bank, is expected to build on this momentum through enhanced digital banking, asset quality improvement, and capital optimization.

Market analysts say the mixed performance reflects broader trends in Nigeria’s financial sector, where rising interest rates have bolstered income, but inflationary pressure and tighter regulation are weighing on bottom-line growth.