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Profit before tax falls 70.5% to ₦235 billion as Group prioritises balance sheet clean-up, but Q1 2026 shows strong rebound with PBT up 72.2% to ₦321 billion.
First HoldCo Plc (formerly FBN Holdings) has reported a 6.9% year-on-year increase in gross earnings to ₦3.4 trillion for the full year ended December 31, 2025, driven by strong core banking performance. However, profit before tax fell 70.5% to ₦235 billion due to a 93.8% surge in impairment charges, reflecting a major balance sheet clean-up aimed at improving future resilience.
The Group disclosed this in its audited 2025 financial results released on Thursday, showing gross earnings rose from ₦3.21 trillion in 2024 to ₦3.44 trillion in 2025.
Q1 2026 Rebound: A Validation of Strategy
In the first quarter of 2026, FirstHoldCo delivered a dramatic turnaround. Gross earnings increased by 26.8% year-on-year to ₦942.0 billion, while profit before tax rose by 72.2% to ₦321.1 billion—among the strongest quarterly PBT outcomes in the Nigerian banking industry.
“FirstHoldCo has begun 2026 on a strong footing, delivering a Q1 performance that validates the resilience of our franchise and the disciplined execution of our strategy,” said Wale Oyedeji, Group Managing Director.
“In a market defined by volatility, our results underscore that our business is not only enduring but strengthening—built to perform through cycles and to compound value for shareholders.”
2025 Full-Year Financial Highlights
| Metric | 2025 Value | Change (YoY) |
|---|---|---|
| Gross Earnings | ₦3.435 trillion | +6.9% |
| Interest Income | ₦2.99 trillion | +24.9% |
| Net Interest Income | ₦1.92 trillion | +36.8% |
| Profit Before Tax (PBT) | ₦235 billion | -70.5% |
| Profit After Tax (PAT) | ₦139.5 billion | -79.4% |
| Operating Expenses | ₦1.23 trillion | +32.1% |
| Total Assets | ₦27.3 trillion | +2.7% |
| Non-Performing Loan Ratio | 12.0% | +180bps |
| NPL Coverage Ratio | 98.7% | +4,390bps |
Why Profit Dropped: The Impairment Charge Story
The sharp decline in profitability was largely attributed to a 93.8% rise in impairment charges for losses, which increased to ₦826.3 billion from ₦426.3 billion in 2024. Elevated operating expenses caused by inflationary and foreign exchange pressures also contributed.
Commenting on the performance, Oyedeji described 2025 as a defining year for the company, marked by disciplined execution, resilient core earnings, and strategic balance sheet restructuring aimed at sustainable growth.
He stated that the Group undertook comprehensive de-risking measures by making adequate provisions for impaired and non-performing exposures, particularly following changes in the post-forbearance regulatory landscape. The move was designed to strengthen transparency, improve asset quality, and position the Group for stronger long-term growth and earnings stability.
Strong Core Banking Performance Despite Headwinds
Despite the challenging operating environment, FirstHoldCo recorded growth in key banking operations:
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Net fees and commission income increased by 20.2% to ₦294.5 billion, supported by stronger digital transaction volumes, transfer fees, and trade-related commissions
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NPL coverage ratio improved significantly to 98.7% from 54.8%, indicating stronger provisioning and balance sheet resilience
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The Group’s non-performing loan ratio rose to 12% from 10.2% in 2024, mainly due to increased exposures within the oil and gas sector
Operating expenses climbed by 32.1% to ₦1.23 trillion, driven by rising personnel costs, regulatory charges, administrative expenses, and increased investment in brand visibility and customer engagement initiatives.
Asset Recoveries and Capital Raising Progress
The Group continues to demonstrate industry leadership in resolving legacy delinquent borrower exposures, with notable progress in asset recoveries, particularly from oil & gas obligors.
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In Q1 2026, approximately ₦19 billion in recoveries were recorded
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The Group is actively raising funds to strengthen its capital base, with ₦128.7 billion secured towards a ₦350 billion goal
These actions protect asset quality, sustain a strong capital position, and reinforce the Group’s capacity to fund growth responsibly across both banking and non-banking platforms.
Business Group Performance
Commercial Banking
| Metric | 2025 Value | YoY Change |
|---|---|---|
| Gross Earnings | ₦3,355.4 billion | +8.1% |
| Net Interest Income | ₦1,887.2 billion | +36.1% |
| Operating Expenses | ₦1,205.6 billion | +32.7% |
| Profit Before Tax | ₦201.2 billion | -72.1% |
| Total Assets | ₦26.7 trillion | +4.8% |
| Customer Deposits | ₦18.9 trillion | +10.0% |
Investment Banking & Asset Management (IBAM)
| Metric | 2025 Value | YoY Change |
|---|---|---|
| Gross Earnings | ₦72.8 billion | -30.1% |
| Profit Before Tax | ₦31.9 billion | -43.6% |
| Total Assets | ₦535.3 billion | +4.0% |
Outlook: Sustainable Growth Ahead
FirstHoldCo stated that it would continue focusing on improving earnings quality, strengthening capital and asset quality, enhancing efficiency, and expanding its non-banking businesses. Management emphasised that 2025 was a “reset” year, focused on cleaning the balance sheet to enable sustainable growth and higher quality earnings in 2026.
“Looking ahead, this strong start to the year reinforces our confidence in the earnings power of the FirstHoldCo franchise and our ability to generate enduring value for all stakeholders,” Oyedeji added.
“We will sustain momentum by continuing to grow quality earnings, capturing emerging opportunities in Nigeria’s evolving financial services landscape, and translating our scale, governance, and execution discipline into superior shareholder returns in 2026 and beyond.”
