Rising interest income, robust fee earnings, and early result filings underscore firm financial positioning
Resilient Financial Performance in a Challenging Quarter
First Holdco Plc has announced its unaudited financial results for the second quarter ended June 30, 2025, posting a pretax profit of ₦169.6 billion. Although this marks a 4.58% year-on-year decline, the group demonstrated continued financial resilience, bringing its half-year pretax profit to a substantial ₦356.1 billion.
This performance came amid a challenging macroeconomic backdrop, with the group leveraging higher interest earnings and fee-based income to offset rising operational costs and a slight pullback in profitability.
Interest Income Surges Above ₦800 Billion
The group’s performance was largely underpinned by a significant increase in interest income, which rose 61.92% year-on-year to ₦812.1 billion in the second quarter—up from ₦501.5 billion in Q2 2024. This strong growth brought First Holdco’s half-year interest income to ₦1.4 trillion.
A breakdown shows that:
- Loans and advances contributed the largest share at ₦910.3 billion
- Investment securities followed with ₦445.7 billion
- Loans to banks added ₦81.2 billion
Even as interest expenses climbed by 27.65% to ₦272.4 billion, the bank's net interest income soared to ₦539.6 billion, an 87.32% increase from Q2 2024. After factoring in impairments, net interest income settled at ₦391.4 billion, up 65.16% year-on-year.
Fee and Commission Income Bolsters Revenue
Complementing the strong interest earnings, net fee and commission income rose to ₦74.5 billion, representing a 27.54% increase from the ₦58.4 billion recorded in Q2 2024. This reflects the group’s sustained efforts in deepening its non-interest income streams.
Operating Costs and FX Losses Weigh on Margins
One of the bright spots in the report was a sharp reduction in foreign exchange losses, which fell from ₦66.4 billion in Q2 2024 to just ₦6.9 billion—a significant relief to the bottom line.
However, operating margins remained under pressure due to rising expenses:
- Personnel costs rose to ₦102.9 billion
- Other operating expenses reached ₦185.5 billion
These increases contributed to a decline in operating profit, which stood at ₦169.2 billion, down from ₦177.7 billion a year earlier—representing a 4.79% year-on-year drop.
Balance Sheet Remains Strong
Despite the slight dip in quarterly profit, First Holdco’s balance sheet maintained solid growth:
- Total assets rose 2.54% to ₦27.1 trillion
- Retained earnings grew by 23.17%, reaching ₦1.3 trillion
These metrics indicate a stable capital position and strong capacity for future expansion or dividend payouts.
Leading the Pack in Corporate Transparency
Notably, First Holdco became the first commercial bank in Nigeria to release its Q2 2025 results, setting a precedent in timely financial disclosure. This marks the first time in recent history the group has led the reporting cycle.
Market analysts attribute this new pace of corporate governance to the influence of Femi Otedola, the group’s Chairman, who has championed proactive disclosures and operational transparency. Otedola’s influence is similarly evident in Geregu Power Plc, another company under his chairmanship, which is also known for being among the earliest to publish financial results.
Market Reaction and Share Performance
As of market close on July 30, 2025, First Holdco’s share price stood at ₦34.90, reflecting a year-to-date gain of 24%. This uptick in share value signals investor confidence in the bank’s long-term strategy, earnings capacity, and prudent risk management—even amid sector-wide pressures.
Summary of Key Financial Metrics (Q2 2025 vs Q2 2024)
| Metric | Q2 2025 | YoY Change |
|---|---|---|
| Interest Income | ₦812.1 billion | +61.92% |
| Net Interest Income | ₦539.6 billion | +87.32% |
| Net Interest Income After Impairment | ₦391.4 billion | +65.16% |
| Net Fee & Commission Income | ₦74.5 billion | +27.54% |
| Operating Profit | ₦169.2 billion | –4.79% |
| Pretax Profit | ₦169.6 billion | –4.58% |
| Total Assets | ₦27.1 trillion | +2.54% |
Conclusion
First Holdco’s Q2 2025 results affirm the group’s ability to navigate cost pressures while delivering solid top-line growth. With strong interest income, improved fee earnings, and reduced FX losses, the group remains well-positioned for continued performance in the second half of the year. Its proactive financial reporting also signals a new era of transparency and corporate leadership in the banking sector.