First Holdo earned N625.281 billion in curiosity earnings for the primary three months of 2024, marking a 40.15% enhance in comparison with the N446.146 billion recorded in Q1 2024
In response to the unaudited monetary statements for the quarter, the bank’s mortgage e-book grew to N13.205 trillion, representing a 9.40% enhance from N12.07 trillion as of December 2024.
This interprets to further loans of N1.134 trillion inside the quarter.
Loans and advances to banks elevated by N700.621 billion, whereas loans and advances to clients rose by N434.069 billion throughout the interval.
The growth within the mortgage e-book, coupled with the nonetheless elevated rate of interest setting, doubtless contributed to the numerous enhance in curiosity earnings, which is damaged down as follows:
- Curiosity earnings from loans and advances to clients stood at N364.172 billion, up 42.43%, and accounted for 58.24% of whole curiosity earnings.
- Curiosity earnings from loans and advances to different banks got here in at N38.780 billion, down 17.01%, contributing 6.20% of whole curiosity earnings.
- Curiosity earnings from investments in securities totaled N222.329 billion, up 54.69%, and made up 35.56% of whole curiosity earnings.
Nevertheless, the price of sustaining its massive deposit base continued to weigh on curiosity earnings.
Curiosity bills rose by 18% to N260.089 billion, consuming about 42% of whole curiosity earnings, a slight enchancment in comparison with 49% in Q1 2024.
Curiosity bills on customer deposits accounted for the biggest portion, totaling N156.434 billion, or 60% of whole curiosity bills.
This enhance displays a N99.217 billion rise in customer deposits in Q1 alone, bringing whole customer deposits to N17.27 trillion.
Regardless of these rising prices, web curiosity earnings remained robust at N365.192 billion, a 60.99% enhance year-on-year.
This determine already represents greater than 26% of the bank’s full-year 2024 web curiosity earnings.
Coupled with an 11.17% decline in impairment costs for losses, the bank reported a 286.20% YoY enhance in web curiosity earnings after impairment costs, reaching a formidable N327.941 billion over 33% of the 2024 full-year whole.
The bank additionally posted robust non-interest earnings, highlighted by a 26% YoY development in charges and fee earnings, pushed largely by:
- E-business transactions: N20.139 billion, up 19% YoY
- Letters of credit score commissions: N12.374 billion, up 69.11% YoY
- Funds switch and intermediation charges: N11.507 billion, up 37.10% YoY
Regardless of these positive aspects, excessive working bills put strain on profitability, with working earnings declining by 20% to N186.695 billion, in comparison with N234.168 billion in Q1 2024.
Equally, pre-tax revenue declined by 20.37% year-on-year to N186.479 billion, mirroring the drop in working earnings and highlighting the influence of elevated working bills on the bank’s backside line.
Stability Sheet
First Holdco’s steadiness sheet remained strong at N26.52 trillion, with customer deposits making up over 65% of whole liabilities.
This underlines the bank’s robust retail and company funding base, which continues to assist its lending capability and general monetary stability.
Shareholders’ funds remained robust at N2.738 trillion, largely pushed by retained earnings.
This represents 10.52% of the group’s whole steadiness sheet measurement, signaling a strong capital place.
The expansion in retained earnings displays revenue accumulation and earnings resilience, offering a powerful buffer for future development, dividend payouts, and growth.
Share worth efficiency
First Holdco’s share worth has been bearish in 2025, closing at N24.55 as of April 29, representing a year-to-date (YtD) lack of 12.5%.
This contrasts with a constructive YtD acquire of 19.11% recorded on the finish of 2024,
Perception and perspective
First Holdco’s Q1 2025 outcomes mirror a strong topline efficiency, with curiosity earnings up 40.15% to N625.3 billion, pushed by mortgage e-book growth and excessive rates of interest.
Internet curiosity earnings rose 60.99%, and post-impairment earnings surged 286.20% YoY, highlighting core earnings power and improved asset high quality.
Non-interest earnings additionally grew on the again of elevated digital and commerce finance exercise.
Nevertheless, rising working prices dragged working and pre-tax income down by over 20%.
Whereas its strong steadiness sheet and earnings resilience place it properly for long-term development, the muted investor sentiment mirrored within the share worth decline suggests warning.
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