MONEY MARKET

FirstHoldCo’s interest income up by +37.45 per cent in Q1 2025

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FIRSTHOLDCO posted a mixed performance in the first quarter (Q1) of 2025, with interest income rising by 37.45 percent to N625.28 billion, up from N454.98 billion in Q1 2024. This growth, according to analysts, was driven by higher yields from loans and advances to customers (N364.17 billion) and investment securities, which surged by 55.82 percent to N222.33 billion.

However, non-interest income from financial instruments at fair value through profit or loss (FVTPL) declined sharply by 83.42 percent to N47.91 billion, compared to N288.94 billion in Q1 2024.

Interest expense also climbed, rising by 14.87 percent to N260.09 billion from N226.42 billion in Q1 2024, with most of the outflow going to customer deposits (N156.43 billion).

Pre- and post-tax profits were lower. Profit before tax (PBT) fell by 21.82 percent to N186.48 billion from N234.53 billion, while profit after tax (PAT) declined by 19.59 percent to N167.39 billion from N208.16 billion in Q1 2024.

Further breakdown of the results show that Net fee and commission income grew by 18.83 percent to N64.11 billion, with significant contributions from e-banking fees (N20.14 billion).

A 24.77 percent increase in total deposits to N19,883.72 billion helped push total loans and advances up by 11.11 percent to N13,205.06 billion. Shareholders’ equity also rose by 42.97 percent to N2,738.28 billion, supported by retained earnings.

Net interest margin improved to 1.93 percent in Q1 2025 from 1.47 percent in Q1 2024. Return on equity and assets declined to 6.11 percent and 0.63 percent, respectively, from 10.87 percent and 0.96 percent. The cost-to-income ratio dropped significantly to 26.15 percent from 64.74 percent.

Price-to-earnings (P/E) ratio rose to 6.95x from 6.17x, while price-to-book (P/B) value declined to 0.43x from 0.78x.

FirstHoldCo’s share price peaked at N33.00 in early February before becoming volatile, eventually closing Q1 at N24.60, with an average price of N28.88.

According to Prostate Research analysts, FirstHoldCo showed strength in lending and asset quality, but rising costs and falling non-interest income affected its profitability.

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