First HoldCo Plc recorded a sharp decline in profit in 2025, as higher impairment charges and its exit from merchant banking significantly impacted its financial performance.
A review of the Group’s unaudited financial statements for the year ended December 31, 2025, shows that profit fell by 93.36% to ₦44.98 billion, compared with ₦677.01 billion recorded in 2024.
The major factor behind the decline was a sharp increase in impairment charges for losses.
This increase was largely due to weaker credit quality across several loan and asset categories. Impairment on loans and advances to customers made up most of the total charge, rising significantly to ₦710.03 billion from ₦371.04 billion in 2024.
The Commercial Banking Business Group recorded the highest impairment, accounting for ₦750.73 billion of the total impairment charges for the year.
At the same time, First HoldCo completed the sale of FBNQuest Merchant Bank Limited in September 2025, officially ending its merchant banking business.
The decision followed a board resolution to exit the segment as part of a broader strategy to refocus the Group’s operations.
The merchant bank had already been classified as a discontinued operation and held for sale in 2024, in line with accounting rules.
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While its final sale was completed in 2025, as previously announced to the market, the transaction resulted in a ₦16.89 billion loss at the Group level.
However, First HoldCo, as the parent company, recorded a ₦14.08 billion profit on the sale due to differences in carrying values.
Following the exit, the Group renamed its investment banking arm from the Merchant Banking and Asset Management Business to the Investment Banking and Asset Management Business Group.
Despite recording higher revenue during the year, First HoldCo’s earnings declined sharply.
Interest income increased to ₦2.96 trillion in 2025, from ₦2.40 trillion in 2024, but the gains were largely offset by the surge in impairment charges.
As a result, operating profit fell to ₦228.37 billion in 2025, compared with ₦795.93 billion in the previous year.
Earnings were further weakened by a ₦7.77 billion loss from discontinued operations, reversing a ₦13.52 billion profit recorded in 2024.
The pressure on earnings also affected the Group’s overall income position.
Total comprehensive income declined sharply to ₦206.37 billion in 2025, from ₦1.06 trillion in 2024.
Despite the sharp fall in profit, First HoldCo’s share price rose to ₦47.90 at the end of 2025, up from ₦28.05 at the close of 2024.
This suggests that investors remain confident in the Group’s restructuring efforts and long-term strategy.
The Group also made other changes to its structure during the year.
In January 2025, FirstBank Nigeria sold a 10 per cent equity stake in FBN Senegal, reducing the Group’s ownership from 100 per cent to 90 per cent and recognising additional non-controlling interests of ₦4.73 billion.
In addition, Rainbow Town Development Limited was classified as a discontinued operation and held for sale following a board decision to dispose of the investment, while FBNQuest Securities Limited was rebranded as First Securities Brokers Limited, effective February 24, 2025.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
