First HoldCo Plc has recorded a drop in its profit for the first quarter of 2025, with total profit falling to N171.1 billion from N208.1 billion posted in the same period in 2024. This shows a year-on-year decline of N37 billion, or 17.8 per cent. The result was published on Tuesday by the Nigerian Exchange and reveals a tough start to the year for the financial services group.
The main reason for the drop in profit was a major fall in gains from financial instruments measured at fair value through profit or loss (FVTPL). In the first quarter of 2024, the group had recorded N288.8 billion in gains from these instruments. But in the same quarter of 2025, the company posted a loss of N47.9 billion instead. This means there was a negative swing of about N336.7 billion, which affected overall operating performance.
Despite this, First HoldCo saw a turnaround in its foreign exchange results. In Q1 2024, the group reported a loss of N98.6 billion, but by Q1 2025, it recorded a gain of N80.5 billion. However, this improvement was not strong enough to cancel out the impact of the fair value loss.
In terms of core banking activities, net interest income rose sharply by 61 per cent, from N226.8 billion in Q1 2024 to N365.2 billion in Q1 2025. This was driven by a 40 per cent increase in interest income, which rose to N625.3 billion from N446.1 billion. However, interest expenses also increased by 18.6 per cent to N260.1 billion, due to the high interest rate environment which affected deposit and borrowing costs.
Fee and commission income also grew by 25.3 per cent to N77.7 billion from N62 billion. Net fee and commission income came in at N64.1 billion, an improvement from N52.4 billion in the same period last year. The group’s other operating income rose to N7.1 billion from N5 billion.
But the company also faced rising expenses. Personnel costs went up slightly to N67 billion from N64.1 billion, while depreciation, amortisation, and impairment costs climbed to N16.4 billion from N13.5 billion. Other operating expenses rose to N161.9 billion from N133.2 billion.
As a result, operating profit dropped to N186.7 billion in Q1 2025 from N234.2 billion in Q1 2024, a decline of 20.3 per cent. Profit before tax also stood at N186.5 billion, down from N234.2 billion. After paying income tax of N19.1 billion lower than the N30.4 billion paid last year profit from continuing operations was N167.4 billion.
The group’s discontinued operations added N3.7 billion to profit, down from N4.3 billion in Q1 2024. This brought total profit attributable to owners of the parent to N169.5 billion, lower than N206.9 billion posted last year. Basic earnings per share (EPS) from continuing operations fell to N4.62 from N5.64. Total basic EPS dropped to N4.72 from N5.76, while diluted EPS declined to N4.05 from N5.73.
On the balance sheet, First HoldCo reported total assets of N26.52 trillion as of March 31, 2025, the same level recorded at the end of December 2024. Customer deposits rose slightly to N17.27 trillion from N17.17 trillion, showing stability in deposit mobilisation. However, total equity dropped to N2.74 trillion from N2.80 trillion, due to a reduction in fair value reserves and slower growth in retained earnings.
First HoldCo is one of Nigeria’s leading financial services holding companies, with banking, insurance, and other investment arms. The group’s first-quarter performance reflects the impact of market volatility, particularly in the area of financial instruments. Despite growth in core banking income, the group faces pressure from non-core losses and rising operational costs.
