In Audited, CBN-released Account, First HoldCo Posts Industry’s Highest Impairment at N826bn, 78% Profit Slump

*Bank releases unaudited Q1 2026 management account to douse concerns

Kayode Tokede

First HoldCo Plc has finally released its delayed audited results and accounts for the full year ended December 31, 2025, on the Nigerian Exchange Limited (NGX), with impairment charges soaring significantly by 93.8 per cent to N826.3 billion, compared to the N426.29 billion declared in its 2024 financial year.

The financial institution also released its unaudited first quarter (Q1) 2026 management accounts in an apparent move to ease tensions following weak full-year 2025 performance, which was weighed down by the sharp rise in impairment charges and a steep decline in profit. The Q1 results also showed that its net impairment charges on financial assets rose to N40.35 billion from N37.25 billion in Q1 2025.

The full-year 2025 results showed that the Group closed 2025 with a profit before tax of N220.28 billion, which was a decline by 72 per cent, compared with the N781.88 billion reported in 2024, just as profit after tax in the year under review fell to N147.25 billion, representing a 78 per cent decline from the N663.499 billion reported in 2024.
First HoldCo’s reported impairment charges on financial instruments, when compared to its other tier-one peers, emerged as the highest in the 2025 financial year.

The full-year results showed that the Group’s interest income closed 2025 at N2.99 trillion, up by 24.9 per cent from the N2.4 trillion recorded in 2024, while interest expenses moved from N996.12 billion in 2024 to N1.08 trillion declared in 2025, representing an increase of 8.1 per cent.
The Group’s net interest income experienced growth of 36.8 per cent, reaching N1.9 trillion and resulting in a net interest margin of 11.1 per cent.
“Non-interest income remained strong, with net fees and commission income rising by 20.2 per cent to N294.5 billion, supported by greater digital transaction volumes, transfer and intermediation fees, and letter of credit commissions and fees,” a report by First HoldCo explained.

From the audited results and accounts, the Group saw its operating expenses rise to N1.2 trillion in 2025, representing an increase of 32.1 per cent from N934.16 billion in 2024.
Findings showed that the Group spent an estimated N183.4 billion on advertising and corporate promotions in 2025, which was a significant 141 per cent increase over the N75.9 billion reported in 2024.
An analysis on ARISE News Channel showed that the Group’s advertising expenses were larger than what it paid as levy to the Asset Management Corporation of Nigeria (AMCON) in the year under review, which was at N130 billion, and also far higher than the amount spent on Information Technology maintenance, which was N108.9 billion, raising concerns among stakeholders.

A further comparison with industry peers also showed that the N183.4 billion spent on advertising by First HoldCo was far above the amount spent by other tier-one banks combined, reflecting concerns over cost efficiency and expense management.
For instance, while Zenith Bank spent N24.2 billion in its 2025 financial year, GTCO spent N20 billion, UBA spent N19.8 billion, and Access Holdings spent N18.7 billion, further highlighting the issue of efficiency.

 Consequently, the cost-to-income ratio climbed to 53.8 per cent in 2025 from 43.3 per cent in 2024.

The Group saw its Non-Performing Loan (NPL) ratio rise to 12 per cent in 2025 from 10.2 per cent the previous year, due to a notable increase in impairment charges, largely attributable to significant industry-wide exposure. The Group declared no dividend for the 2025 financial year.