Profit Falls, Big Investors Exit: FIRSTHOLDCO Faces Tough H1 2025

……….the non-performing loan ratio increased to 12.9% from 10.2% at year-end 2024.

First HoldCo Plc (FIRSTHOLDCO) has reported a 22.3% drop in profit after tax for the first half of 2025, falling to ₦283.77 billion from ₦365.30 billion a year earlier. The sharp decline comes despite strong growth in interest income, and was worsened by fair value losses and a surprise sell-off by two major shareholders.

The company’s H1 2025 unaudited financials show a 51.7% year-on-year growth in interest income to ₦1.44 trillion, driven by higher earnings from customer loans, interbank placements, and investment securities. But while core income was strong, non-interest income slumped by 57.4%, dragged down by ₦69.71 billion in fair value losses.

Net interest income jumped 75.7% to ₦904.83 billion, with the group’s net interest margin improving to 10.4% from 7.7% in H1 2024. However, credit impairment charges nearly doubled (+99.4%), reaching ₦185.40 billion. The result: cost of risk rose to 3.9% from 2.3%, and the non-performing loan ratio increased to 12.9% from 10.2% at year-end 2024.

Adding to the pressure, two of FIRSTHOLDCO’s institutional shareholders—DoveHill Capital Partners and Westrock International Holdings—sold off their combined 8.6% stake during Q2 2025. Market watchers interpret the exit as a lack of confidence in the group’s short-term stability amid rising loan impairments and volatile market valuations.

Operating income rose 4.9% to ₦908.98 billion, but was overshadowed by a 24% spike in operating expenses, which reached ₦552.83 billion. Higher personnel costs, NDIC premiums, and advertising spending led to a cost-to-income ratio of 50.5%, up from 46.9% last year.

Profit before tax declined 15.4% to ₦356.15 billion, while tax expenses rose nearly 40%, leading to the final post-tax figure of ₦283.77 billion.

Financial experts say the outlook for core income remains positive thanks to the high interest rate environment. But they warn that continued losses on investments and heavy provisioning could keep dragging on profitability.

“The fundamentals are solid, but confidence is shaken,” said Ifeanyi Uzo, a banking analyst. “Unless FIRSTHOLDCO takes strong steps to clean up its loan book and manage costs, investor exits may continue.”

Management is scheduled to address the results in an earnings call on Monday, August 4, 2025, at 3:00 PM. Investors and analysts alike will be watching closely for answers on how the group plans to recover lost ground in the second half of the year.