First Holdco rakes in N625.3 billion curiosity earnings in Q1 2025, expands lending by N1.1 trillion
First Holdo earned N625.281 billion in curiosity earnings for the primary three months of 2024, marking a 40.15% improve in comparison with the N446.146 billion recorded in Q1 2024
In keeping with the unaudited {financial} statements for the quarter, the {bank}’s mortgage guide grew to N13.205 trillion, representing a 9.40% improve from N12.07 trillion as of December 2024.
This interprets to further loans of N1.134 trillion throughout the quarter.
Loans and advances to banks elevated by N700.621 billion, whereas loans and advances to prospects rose by N434.069 billion through the interval.
The enlargement within the mortgage guide, coupled with the nonetheless elevated rate of interest setting, possible contributed to the numerous improve in curiosity earnings, which is damaged down as follows:
- Curiosity earnings from loans and advances to prospects stood at N364.172 billion, up 42.43%, and accounted for 58.24% of complete 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 complete curiosity earnings.
- Curiosity earnings from investments in securities totaled N222.329 billion, up 54.69%, and made up 35.56% of complete curiosity earnings.
Nonetheless, the price of sustaining its giant deposit base continued to weigh on curiosity earnings.
Curiosity bills rose by 18% to N260.089 billion, consuming about 42% of complete curiosity earnings, a slight enchancment in comparison with 49% in Q1 2024.
Curiosity bills on buyer deposits accounted for the biggest portion, totaling N156.434 billion, or 60% of complete curiosity bills.
This improve displays a N99.217 billion rise in buyer deposits in Q1 alone, bringing complete buyer deposits to N17.27 trillion.
Regardless of these rising prices, web curiosity earnings remained robust at N365.192 billion, a 60.99% improve 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 improve in web curiosity earnings after impairment costs, reaching a formidable N327.941 billion over 33% of the 2024 full-year complete.
The {bank} additionally posted robust non-interest earnings, highlighted by a 26% YoY progress 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 factors, 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 affect of elevated working bills on the {bank}’s backside line.
Stability Sheet
First Holdco’s stability sheet remained sturdy at N26.52 trillion, with buyer deposits making up over 65% of complete liabilities.
This underlines the {bank}’s robust retail and company funding base, which continues to help its lending capability and total {financial} stability.
Shareholders’ funds remained robust at N2.738 trillion, largely pushed by retained earnings.
This represents 10.52% of the group’s complete stability sheet dimension, signaling a strong capital place.
The expansion in retained earnings displays revenue accumulation and earnings resilience, offering a powerful buffer for future progress, dividend payouts, and enlargement.
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 optimistic YtD acquire of 19.11% recorded on the finish of 2024,
Perception and perspective
First Holdco’s Q1 2025 outcomes replicate a strong topline efficiency, with curiosity earnings up 40.15% to N625.3 billion, pushed by mortgage guide enlargement 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.
Nonetheless, rising working prices dragged working and pre-tax earnings down by over 20%.
Whereas its sturdy stability sheet and earnings resilience place it properly for long-term progress, the muted investor sentiment mirrored within the share worth decline suggests warning.
