May 05, (THEWILL) – First Holdco Plc.’s net profit fell by about 18 percent year-on-year in the first quarter of 2025 in what appears to be a negative start to the year. The profit before tax declined from N234.3 billion reported in Q1 2024 to N186.5 billion in the review period.
This comes as the behemoth financial services company’s non-interest income fell significantly, settling at N104 billion in Q1 2025, constituting a 60 percent decrease compared to the N260 billion reported in Q1 2024.
The negative profit growth also puts the elephant-branded firm on the bottom spot alongside GTCO compared with its peers in the Tier-1 group (also referred to as FUGAZ – First Bank, UBA, GT Bank, Access Bank and Zenith Bank).
UBA announced a pre-tax profit of N204.3 billion in Q1 2025 against N156.3 billion in the equivalent period of 2024, representing an increase of 31 percent.
Zenith Bank’s pre-tax profit for Q1 2025 rose to N350.8 billion against N320.1 billion in Q1 2024, constituting an increase of 9.5 percent year-on-year.
Access Holdings reported a pre-tax profit of N222.78 billion for the first quarter of 2025, marking a 9.8 percent increase year-on-year, compared to the same period last year when it posted N202.73 billion.
First HoldCo’s key metrics year-on-year sharp plunge raises questions about the group’s competitive position among its major rivals as the industry faces fierce competition towards the Marh 31, 2026 recapitalisation deadline set by the Central Bank of Nigeria (CBN).
A further look at First HoldCo’s Q1 2025 heavy-footed performance, related to non-interest-related earnings, manifested in the group’s aggregate revenue that struggled to achieve the required growth compared with its members in the FUGAZ league.
According to details from First HolCco’s unaudited financial statement, gross earnings only grew by 3.3 percentr year-on-year to N729.3 billion from N704.2 billion in the comparable period in 2024.
While Net interest income surged by 61 percent year on year to settle at N365.2 billion from N226.8 billion in the comparable period in 2024, First HoldCo’s non-interest income drastic decline did not help matters much.
Notwithstanding the lower impairment charges arising from the cautious attitude seen in its FY 2024 results — aimed to avoid a return to the previous years of trap in the miry clay of huge NPL — the group yet recorded significant increase in operating expenses (OPEX).
This incidentally offset the gains from the lower impairment charges, further pressuring net income. Details also showed that operating expenses rose by 16.4 percent year on year to settle at N245.3 billion from N210.8 billion in the equivalent period in 2024.
The group’s interim unaudited result showed that despite a sharp moderation in its group’s tax expenses, profit fell by 17.9 percent year on year to N167.4 billion from N208.3 billion in Q1-2024, demonstrating further weakening of the group’s earnings.
Overall, the weaker earnings performance resulted in an annualised return on average equity (ROAE) of 24.2 percent which represents a sharp drop from 44.5 percent in Q1 2024.
On the stock performance, First HolCo closed its last trading day (Friday, May 2, 2025) at N24.80 per share on the Nigerian Exchange (NGX), recording a 0.2 percent drop from its previous closing price of N24.85.
FirstHoldCo began the year with a share price of N28.05 but has since lost 11.6 percent performance off that price valuation, ranking it 117th on the NGX in terms of year-to-date performance.
FirstHoldCo is the 11th most traded stock on the Nigerian Stock Exchange over the past three months (Jan 29 – May 2, 2025).
FirstHoldCo has traded a total volume of 765 million shares—in 19,541 deals—valued at N22.3 billion over the period, with an average of 12.1 million traded shares per session.
FirstHoldco Plc in March 2025 disclosed the successful completion of its N150 billion Rights Issue, which was oversubscribed by an impressive 25 percent.
This milestone sets the stage for the company’s next phase: a planned Private Placement to raise an additional N350 billion.
Speaking on the capitalisation exercise, Adebowale Oyedeji, Group Managing Director of FirstHoldco Plc, highlighted the strong investor confidence demonstrated in the first phase of the capital raise initiative.
“We are delighted to announce the successful completion of the up to N150 billion Rights Issue following impressive subscriptions of N187.6 billion, over 25 percent above target, in this first phase of the capital raise exercise,” he stated.
Oyedeji emphasised that the overwhelming response from shareholders signifies trust in the company’s strategic vision. He added that the newly raised capital will enable FirstHoldco to enhance its market position, invest in innovation, and support sustainable growth for FirstBank, its flagship subsidiary.
“We extend our profound appreciation to the Central Bank of Nigeria and the Securities and Exchange Commission for their support in ensuring the integrity of the process and the capital market,” he remarked.
The Chairman of First Holdco Plc, Femi Otedola, echoed Oyedeji’s sentiments, expressing gratitude for the strong participation of shareholders and stakeholders in the Rights Issue.
“On behalf of the Board of Directors, I would like to extend my heartfelt gratitude to all our shareholders and all stakeholders involved in this successful Rights Issue offer. The strong participation is a clear indication of the collective belief in First Holdco and its bright future,” he said.
Otedola also acknowledged the guidance and support provided by the regulators, including the Central Bank of Nigeria and the Securities and Exchange Commission, ensuring full compliance and transparency throughout the process.
“We deeply appreciate the continued support and partnership, which enables us to embark on this next phase of growth,” he added.
With the shareholders’ overwhelming approval during the company’s 12th Annual General Meeting on November 14, 2024, FirstHoldco is now set to proceed with the second phase of its capitalisation exercise—a Private Placement to raise up to N350 billion.
This approval includes provisions to pursue capital raises through multiple avenues, including public offerings, private placements, and rights issues, in both Nigerian and international capital markets.
Additionally, shareholders approved a dividend of 40 kobo per 50 kobo ordinary shares, amounting to N14.36 billion, to be distributed for the 2023 financial year. They also authorised the Board of Directors to take any necessary actions to implement the resolutions, including compliance with directives from relevant regulatory authorities.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
