Lagos, Nigeria (Naija247news) — First Holdco Plc recorded a profit after tax (PAT) of ₦458 billion for the nine-month period ended September 2025, representing a 13% year-on-year decline, according to the group’s unaudited financial results.
The drop in profitability was reflected in investor metrics, with earnings per share (EPS) falling 27.3% to ₦10.65 from ₦14.64 in the corresponding period of 2024, partly due to new share issues.
Interest Income Drives Net Growth
Despite the bottom-line pressure, the group’s net interest income (NII) grew 71.7% year-on-year to ₦1.50 trillion, up from ₦874 billion, supported by a high interest rate environment in Nigeria.
Interest income surged 40.4% to ₦2.29 trillion, driven by stronger returns from customer loans and investment securities, while interest expense rose modestly 4.3% to ₦791.8 billion.
Interestingly, interest on funds paid to financial institutions dropped 13.7%, offset by a 15.8% rise in customer deposit costs.
Non-Interest Income Falls Sharply
The group’s non-interest income tumbled 49.1% to ₦297.55 billion, weighed down by a significant fair value loss of ₦98.57 billion.
However, fee and commission income increased 24.7%, and gains from investment securities more than tripled, providing partial support to revenues.
Rising Operating Expenses Weigh on Profitability
Operating expenses climbed 39.3% to ₦942.67 billion, driven by higher personnel, advertising, maintenance, and AMCON costs, exerting further pressure on the group’s earnings.
As a result, profit before tax declined 7.3% to ₦566.54 billion, and net income fell 13% to ₦458.08 billion, primarily due to elevated tax obligations.
Outlook
Analysts highlight that while First Holdco benefits from strong interest income in a high-rate environment, the decline in non-interest revenue and elevated operating costs remain key challenges. Investors will closely watch how the group balances cost management with revenue diversification in the coming quarters.
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Reporting by Naija247news in Lagos, Nigeria.
