First HoldCo Plc, the parent company of Nigeria’s oldest bank, First Bank, in its first quarter results, revealed a 17.8 percent decline in its after-tax profit due to a decline in net gains from investments in securities.
According to analysis by BusinessDay, the holding company’s after-tax profit fell by 17.8 percent to N171.1 billion in Q1 from N208.1 billion in the same period of 2024.
Interest Income calculated using the effective interest rate rose by 40.1 percent year-on-year to N625.3 billion from N446.1 billion, driven largely by improved loan volumes and repricing amid elevated interest rates.
Read also: Investors’ guide to tapping Nigeria’s planned tax credits
Net Interest Income surged by 61 percent to N365.2 billion from N226.8 billion, with a stronger margin reflecting effective balance sheet management despite an 18.6 percent rise in interest expense to N260.1 billion.
The holding company’s financials revealed that its net gains on the sale of investment securities fell to N136 million from N12.03 billion reported last year.
Foreign exchange gains sharply rebounded to N80.5 billion from a N98.6 billion loss in Q1 2024, an impressive turnaround, likely benefiting from naira devaluation and currency trading strategies.
However, Net losses on financial instruments at FVTPL amounted to N47.9 billion, a reversal from a N288.8 billion gain in the prior year, reflecting market volatility or strategic repositioning of portfolios.
Fee and commission income increased by 25 percent to N77.7 billion, driven by electronic banking fees amounting to N20.1 billion, underscoring growth in transaction banking, digital services, and advisory.
The impairment charge on financial assets declined marginally to N37.3 billion from N41.9 billion, signaling improved credit conditions or better risk management.
Analysing the holding company’s balance sheets, its total assets remained stable at N26.52 trillion.
Loans to customers grew to N9.20 trillion from N8.77 trillion in December 2024, showing increased credit disbursement.
Deposits from customers increased to N17.27 trillion from N17.17 trillion in December 2024, reflecting stable funding sources.
Shareholders’ equity stood at N2.74 trillion, down from N2.80 trillion in December 2024, largely due to a N233.3 billion other comprehensive loss driven by fair value changes and currency translation differences.
Read also: FIRS mandates closure of unauthorised tax collection accounts
Net cash used in operating activities was negative at N3.49 trillion, down from a N2.18 trillion inflow in Q1 2024, indicative of significant funding pressures or balance sheet adjustments.
Positive cash flows were recorded in investing activities amounting to N2.54 trillion and financing (₦306.8 billion) activities.
Earnings Per Share (Basic) decreased to N4.72 from N5.76 during the surveyed period.
