The Business NG - November 04, 2025

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Editorial Focus (BusinessNG)

First Holdco Plc’s nine-month 2025 results reflect the growing strain on Nigerian banks as macroeconomic pressures deepen. Despite strong growth in net interest income, higher funding costs, surging impairments, and a collapse in non-interest revenue have eroded the group’s earnings momentum.

The 15.5% drop in profit after tax to ₦450.9 billion underscores how volatile market conditions and weak asset quality are challenging profitability across the sector. Rising loan-loss provisions—up nearly 69%—signal mounting credit risks as businesses struggle under inflationary and interest-rate burdens.

More worrisome is the 49% slump in non-interest income, a key buffer against loan volatility. The loss highlights the urgent need for First Holdco and peers to strengthen their fee-based income, trading operations, and digital services to cushion against cyclical shocks.

As operating expenses soar and cost-to-income ratios worsen, sustaining earnings growth will require disciplined cost management, stronger risk controls, and renewed focus on diversified income streams. Investors and regulators will be watching how the group navigates these headwinds heading into the final quarter of 2025.