First Holdco 9M Results Sees PAT Declines by 12.96% Despite +71.70% Rise in Net Interest Income

First Holdco Plc, the parent company of First Bank of Nigeria and other financial brands, has reported its financial performance for the nine months ended September 2025. Despite a significant 71.70% rise in net interest income, the company faced a 12.96% decline in profit after tax (PAT).

In this period, gross earnings increased by 17.07% to ₦2.64 trillion, driven largely by the increase in interest income, which grew by 40.38%. However, non-interest income suffered a sharp decline of 44.45%, highlighting the challenges within the broader financial environment.

Key Financial Highlights for 9M 2025

• Gross Earnings: ₦2.64 trillion (up 17.07% YoY)

• Interest Income: ₦2.29 trillion (up 40.38% YoY)

• Interest Expense: ₦791.80 billion (up 4.31% YoY)

• Non-Interest Income: ₦343.70 billion (down 44.45% YoY)

• Operating Income: ₦1.79 trillion (up 23.25% YoY)

• Operating Expenses: ₦942.67 billion (up 39.28% YoY)

• Profit Before Tax (PBT): ₦566.54 billion (down 7.26% YoY)

• Profit After Tax (PAT): ₦458.08 billion (down 12.96% YoY)

• Earnings Per Share (EPS): ₦10.65 (down 27.65% YoY)

Impact of Interest Income on Growth

First Holdco’s net interest income saw a remarkable growth of 71.70%, benefiting from higher yields on loans and investment securities. This increase in net interest income played a major role in driving the group’s gross earnings to ₦2.64 trillion in 9M 2025.

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However, the cost-to-income ratio rose to 52.44%, largely driven by a 39.28% increase in operating expenses, including higher personnel costs and advertising expenses.

Challenges with Loan Impairments and Non-Interest Income

The company’s impairment charges jumped 68.57% to ₦288.92 billion, reflecting the ongoing challenges in managing loan impairments and delinquent debts. This, alongside the weak performance in non-interest income, led to a decline in profit before tax by 7.26% and profit after tax by 12.96% compared to the same period last year.

Five-Year Performance and Outlook

Over the past five years, First Holdco has demonstrated robust growth, especially in terms of gross earnings, which rose from ₦427.4 billion in 9M 2021 to ₦2.64 trillion in 9M 2025. Despite the recent slowdown in profit growth, customer deposits and gross loans have grown significantly, by 230.27% and 245.34%, respectively, highlighting the group’s strong market position.

Stock Performance and Market Sentiment

The performance of First Holdco’s stock reflects a volatile yet positive trajectory. The share price increased by approximately 18.98% year-to-date, closing at ₦31.35 in December 2025, up from ₦26.35 at the start of the period. This rise in share price signals improved investor sentiment, despite broader market challenges.

Peer Comparison and Market Positioning

Compared to its tier-1 peers, First Holdco stands out in terms of revenue generation, with gross earnings of ₦2.64 trillion, outperforming UBA and ETI. Despite operating with a smaller asset base than banks like Zenith and Access, First Holdco maintains superior revenue density, a positive indicator for future growth.

Investment Outlook and Analyst Recommendation

Analysts at Proshare have said, “First Holdco’s 9M 2025 results reflect a strong banking franchise with a solid customer base and a resilient net interest income.

“While loan impairments have dampened short-term profits, the company is well-positioned for recovery as asset-quality pressures ease.”

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Analysts are recommending a “BUY” for investors looking for exposure to the Nigerian financial services sector.

Additionally, Femi Otedola, the largest shareholder of First Holdco, has increased his stake by investing an additional ₦14.8 billion, raising his equity interest to 18%. This move reinforces market confidence in the financial institution.