First HoldCo Plc, in its half-year report, disclosed that its interest income surged by 51.7 percent to N1.44 trillion, up from N947.7 billion recorded in the same period last year.
This was driven largely by the high-yield interest rate environment, providing a solid earnings foundation for the financial services holding company.
According to the holding company’s financial statement, its interest expense also rose by 23 percent to N532.6 billion due to elevated funding costs tied to the tight monetary policy stance of the Central Bank of Nigeria.
Despite the increased expense, net interest income improved significantly, rising by 75.7 percent to N904.8 billion, affirming interest income as the group’s primary earnings engine.
“Net interest income benefited from the high interest rate environment,” analysts at CSL Stockbrokers noted, adding that this trend would likely persist so long as benchmark rates remain elevated.
Read also: First Holdco’s profit falls to N289bn despite high interest rates
However, the gains in interest earnings were tempered by market-related losses. The group posted a N53.7 billion net loss on financial instruments held at fair value through profit or loss (FVTPL), a reversal from a N432.2 billion gain in the first half of 2024.
This was largely attributed to market volatility and unfavourable revaluation adjustments triggered by currency devaluation and fluctuating bond yields.
Foreign exchange revaluation helped soften the blow, delivering a N73.5 billion gain, recovering from a N165 billion loss in the previous year.
Fee and commission income rose 29.7 percent to N168.6 billion, reflecting growth in digital payments, transaction services, and investment banking fees. Yet, the rise in fee-related costs reduced the net benefit, with fee and commission expenses climbing to N29 billion.
“Net fee and commission income grew moderately, up 25.1 percent y/y and 16.4 percent q/q. With the exception of credit-related fees, brokerage & intermediation fees, and fund management fees, all other Fee and Commission Income lines showed y/y growth,” CSL disclosed.
The group’s cost profile also expanded. Impairment charges more than doubled to N185.4 billion from N93 billion in the same period last year, driven by a conservative credit stance amid macroeconomic uncertainty.
Personnel expenses rose to N170 billion, while other operating expenses jumped to N347.4 billion, bringing total operating costs to N552.8 billion, up 23.5 percent year-on-year.
First HoldCo Plc reported an after-tax profit of N289.8 billion for the half-year ended June 30, 2025, a 20.7 percent decline from the N365.3 billion posted in the same period last year.
This decline, despite higher operating income, was largely due to a fall in fair value gains on financial instruments.
Read also: SEC grants “no objection” to N323 billion First Holdco shares deal
From a balance sheet perspective, the group posted a 2.5 percent increase in total assets to N27.2 trillion, up from N26.5 trillion at the end of 2024.
The growth was driven by higher customer loans, which rose marginally to N8.86 trillion, and a 45 percent increase in balances with banks, which climbed to N4.79 trillion. Investment securities remained relatively flat at N6.46 trillion.
Customer deposits rose 4.2 percent to N17.9 trillion, sustaining the group’s liquidity strength, while borrowings increased to N1.75 trillion, reflecting additional funding activities. However, fair value reserves dropped significantly to N77.7 billion from N356.7 billion, largely due to mark-to-market losses on financial assets amid a high interest rate environment.
Equity strengthened by 5.4 percent to N2.95 trillion, supported by retained earnings and a N146.7 billion capital injection through a share issue. This not only bolsters the group’s capital adequacy but also signals investor confidence.
On the cash flow front, First HoldCo reported a negative operating cash flow of N1.01 trillion, compared to a positive N1.2 trillion in the same period last year.
This reversal was driven by changes in working capital and higher interest and tax payments. Investing activities used up N154.4 billion, while financing activities generated N313 billion, largely from new borrowings and the equity raise. Cash and cash equivalents fell by N852 billion to N4.87 trillion at the end of June.
