Table of Contents
Key Points
- First HoldCo’s H1 2025 gross earnings rose 18% to $1.07 billion, driven by stronger interest and fee income.
- Profit before tax fell to $232.3 million as loan impairment charges more than doubled due to stricter CBN guidelines.
- Despite profit dip, assets rose to $17.7 billion as Otedola-led reforms boost investor confidence and financial transparency.
First HoldCo Plc, the parent company of Nigeria’s oldest bank, First Bank of Nigeria Limited, has reported gross earnings of N1.65 trillion ($1.07 billion) for the first half of 2025—an 18 percent increase from the same period last year. The Lagos-based lender, chaired by billionaire businessman and philanthropist Femi Otedola, continues to push forward with sweeping reforms that aim to reset its financial footing and restore confidence in the institution.
Interest income rose significantly to N1.43 trillion ($932.7 million), up from N947.7 billion ($617.6 million) a year earlier. Fee and commission income also improved, increasing to N168.57 billion ($109.9 million) from N129.92 billion ($84.74 million). Lending activity remained strong, with loans and advances to banks climbing to N4.79 trillion ($3.12 billion) from N3.3 trillion ($2.15 billion), while customer loans ticked up to N8.86 trillion ($5.8 billion).
Standing tall amid policy shifts
However, profit before tax declined to N356.15 billion ($232.3 million), down by N55 billion ($35.9 million) compared to the first half of 2024. The drop reflects a deliberate decision to more than double its impairment charges, which surged from N92.9 billion ($60.6 million) to N185 billion ($120.7 million). This move comes in response to new Central Bank of Nigeria (CBN) guidelines requiring lenders to fully recognize non-performing assets across the industry.
The lender under Femi Otedola, has embraced these regulatory changes. Otedola, known for pushing reforms at Geregu Power Plc and formerly at Forte Oil Plc, is once again championing a shift toward more timely disclosures and tighter financial discipline. The rise in provisioning is seen as a calculated move to exit the regulatory forbearance measures introduced to help banks cope with legacy loan issues. The CBN has made clear that full recognition of impaired assets is now non-negotiable, calling it a necessary step toward restoring confidence.
First HoldCo prioritizes risk cleanup
Earlier this year, First HoldCo admitted that some underperforming loans remained on its books. Still, the group reiterated its goal of cleaning up the balance sheet while continuing to pay dividends and deliver long-term value to shareholders. “Our diversified portfolio continues to shield us from broader economic shocks. We remain focused on managing risk responsibly and creating value for shareholders,” the company said in a statement.
Although the dip in profit may cause concern in the short run, analysts believe the decision to take the hit now could pay off down the line. By tackling these issues head-on, the company is strengthening its capital position and signaling to investors that it’s serious about governance, risk management, and accountability.
First HoldCo assets hit $17.7 billion
Despite the impact of higher loan provisions, First HoldCo’s total assets rose to N27.2 trillion ($17.7 billion) as of June 30, compared to N26.52 trillion ($17.3 billion) at the end of 2024. Shareholders’ equity also improved to N2.95 trillion ($1.92 billion), up from N2.79 trillion ($1.82 billion), while retained earnings climbed to N1.37 trillion ($894 million).
Femi Otedola, who holds a 15.95 percent stake, remains the group’s largest individual shareholder and continues to play a central role in shaping its direction as chairman. Under his leadership, the group has become more open with its disclosures, strengthened board oversight, and made visible efforts to rebuild investor confidence.
Shares of First HoldCo Plc have risen 24 percent so far this year, as investors respond to the group’s stronger earnings. While the rise in provisioning has been a drag, the broader view is that the business is on steadier ground. With first-half results showing clear progress, attention is now turning to how the company performs in the months ahead with Otedola still at the helm.
