First HoldCo has reported a full-year profit of N44.98bn for the 2025 financial year, representing a 93.4 per cent decline from the N677.01bn profit recorded in 2024, even as the financial services group slipped into a loss of N405.89bn in the fourth quarter.

The group’s audited results for the year ended 31 December 2025 showed that profit attributable to owners of the parent fell to N38.04bn, down 94.3 per cent from N670.80bn in the previous year.

Recall that the Group Chairman of First Bank Holdings, Femi Otedola, defended the company’s decision to take a one-time charge of N748bn to clear legacy bad loans, describing the move as a strategic step toward long-term stability despite its impact on reported profits. The billionaire businessman, who disclosed this via his X handle on Saturday, stated that the decision was aligned with the Central Bank of Nigeria’s directive for banks to address non-performing loans transparently rather than defer the problems.

The performance in the final quarter eroded earnings recorded earlier in the year. In Q4 2025, First HoldCo posted a loss of N405.89bn, compared with a profit of N143.13bn in Q4 2024, representing a 383.6 per cent negative swing year-on-year.

Despite the pressure on earnings, interest income for the full year rose by 23.6 per cent to N2.96tn, from N2.40tn in 2024, supported by growth in interest-earning assets and higher yields. However, interest expense also increased by 5.8 per cent to N1.05tn, narrowing the benefits of higher interest income.

As a result, net interest income grew by 36.3 per cent to N1.91tn, compared with N1.40tn in the prior year. This gain was, however, offset by a sharp rise in credit risk provisions. Impairment charges for losses surged by 75.4 per cent to N748.13bn, from N426.29bn in 2024, significantly weighing on profitability.

After impairment charges, net interest income stood at N1.16tn, representing an increase of 19.2 per cent from the N975.02bn recorded a year earlier.

Non-interest income remained mixed. Net fee and commission income rose by 18.7 per cent to N290.74bn, from N244.89bn, reflecting improved transaction volumes and electronic banking income.

However, trading activities were volatile, with the group recording a foreign exchange gain of N37.64bn, compared with a loss of N64.95bn in 2024, while losses on financial instruments at fair value through profit or loss widened to N87.06bn, from a gain of N549.99bn in the previous year.

Operating expenses increased materially. Personnel expenses rose by 25.1 per cent to N385.91bn, while other operating expenses climbed by 43.6 per cent to N809.36bn, reflecting higher inflation, regulatory costs, and general operating pressures. Consequently, operating profit fell sharply to N228.37bn, representing a 71.3 per cent decline from the N795.93bn recorded in 2024.

The group also recorded a loss of N7.77bn from discontinued operations, compared with a profit of N13.52bn in the prior year, further weighing on overall performance.

On the balance sheet, total assets increased by 2.0 per cent to N27.07tn, from N26.52tn in 2024. Loans and advances to customers grew by 3.4 per cent to N9.06tn, while customer deposits rose by 10.0 per cent to N18.90tn, underscoring continued balance-sheet expansion.

Total equity rose by 14.9 per cent to N3.21tn, compared with N2.80tn in the previous year, supported by fair value gains and retained earnings despite the drop in profit.