First HoldCo Profit Drops Sharply in 2025 After Major Loan Write-Off

 First HoldCo Plc, the holding company of First Bank of Nigeria, has reported a sharp decline in profit after tax for the 2025 financial year, following a one-off cleanup of legacy non-performing loans mandated by the Central Bank of Nigeria (CBN).

According to the company’s financial results, profit after tax fell by 92 per cent to ₦52.75 billion,

 largely due to the write-off of long-standing bad loans accumulated over previous years. The move,

 while significantly impacting short-term profitability, was described by the company as a strategic reset

 aimed at strengthening the bank’s long-term financial health.

Core Banking Performance Remains Strong

Despite the profit drop, First HoldCo recorded solid growth in its core banking operations. Interest

 income rose to ₦2.96 trillion, representing a 23.6 per cent increase compared to the previous year.

 The group also reported an improvement in asset quality, with its non-performing loan (NPL) ratio

 declining to 7 per cent, a level considered healthier within the banking industry.

These figures suggest that the bank’s underlying business remains resilient, even as it absorbs the

 impact of the regulatory-directed cleanup.

Strategy Behind the Write-Off

Chairman of First HoldCo, Femi Otedola, explained that the decision to absorb the losses was

 deliberate and forward-looking. According to him, clearing legacy non-performing loans positions the

 group for sustainable growth, improves transparency, and strengthens compliance with regulatory

 expectations.

The move also aligns with the Central Bank’s ongoing banking sector reforms, including

  recapitalisation requirements ahead of the March 2026 deadline, which aim to enhance financial

 stability across the industry.

Reactions to the results have been mixed. While some analysts and investors praised the group for

 transparency and decisive action, others expressed concern over the short-term impact on shareholder

 value, particularly following a dip in the company’s stock price after the announcement.

What This Means for Customers and the Economy

For customers and depositors, the loan cleanup signals a stronger and more stable institution going

 forward. A healthier balance sheet improves the bank’s ability to lend, support businesses, and

 contribute to economic growth, while reducing systemic risk within the financial sector.

Although First HoldCo’s 2025 profit figures reflect short-term pain, the underlying performance and

 regulatory compliance efforts suggest a strategic reset aimed at restoring confidence and positioning the

 group for long-term stability and growth. Source: Company financial disclosures and regulatory

 context from the Central Bank of Nigeria (CBN).