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% enhance in comparison with the N446.146 billion recorded in Q1 2024
In response to the unaudited {financial} statements for the quarter, the {bank}’s mortgage guide 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 enlargement within the mortgage guide, coupled with the nonetheless elevated rate of interest atmosphere, probably 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 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 most important portion, totaling N156.434 billion, or 60% of complete curiosity bills.
This enhance 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 sturdy 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 expenses for losses, the {bank} reported a 286.20% YoY enhance in web curiosity earnings after impairment expenses, reaching a formidable N327.941 billion over 33% of the 2024 full-year complete.
The {bank} additionally posted sturdy 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 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 impression of elevated working bills on the {bank}’s backside line.
Stability Sheet
First Holdco’s steadiness sheet remained sturdy at N26.52 trillion, with buyer deposits making up over 65% of complete liabilities.
This underlines the {bank}’s sturdy retail and company funding base, which continues to assist its lending capability and general {financial} stability.
Shareholders’ funds remained sturdy at N2.738 trillion, largely pushed by retained earnings.
This represents 10.52% of the group’s complete steadiness sheet dimension, signaling a stable capital place.
The expansion in retained earnings displays revenue accumulation and earnings resilience, offering a robust buffer for future progress, dividend payouts, and enlargement.
Share value efficiency
First Holdco’s share value 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 achieve of 19.11% recorded on the finish of 2024,
Perception and perspective
First Holdco’s Q1 2025 outcomes mirror a stable 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 income down by over 20%.
Whereas its sturdy steadiness sheet and earnings resilience place it nicely for long-term progress, the muted investor sentiment mirrored within the share value decline suggests warning.
