FY 2024: First Holdco increases PBT by 124.8 per cent

FIRST Holding Company, in its audited financial results for the year ended December 31, 2024, has reported a pre-tax profit of N781.88 billion, representing a 124.77 percent year-on-year increase compared to N347.87 billion recorded in 2023.

Profit after tax also saw significant growth, rising by 115.12 percent to N663.490 billion, while Gross Earnings surged by 105.71 percent year-on-year, hitting N3.212 trillion.

The Board of Directors has recommended a dividend of 60 kobo per ordinary share of 50 kobo each, amounting to N25.13 billion, up from N14.36 billion distributed in 2023.

First Holdco Plc has posted a stellar performance for 2024, with strong earnings growth fueled by robust interest and non-interest income.

Gross earnings surged, thanks largely to a sharp rise in interest income, which remains the backbone of the group’s business, making up 75 percent of total gross earnings, up from 60 percent in 2023.

This growth came primarily from loans and advances to customers and financial institutions, which accounted for over 64 percent of the interest income.

However, there was also a solid boost from investment in securities, which contributed 35 percent to interest income, up 19 percent year-on-year.

This reflects both the high-interest rate environment and a significant increase in securities investment, which rose 134 percent to N6.54 trillion, now making up 25 percent of the group’s total assets.

Total loans and advances also grew strongly, rising 43.5 percent year-on-year, and now represent over 45 percent of the group’s balance sheet.

On the cost side, interest expenses rose too, mostly from deposits by customers and other banks; these accounted for 83 percent of total interest expenses and 34 percent of the group’s total interest income.

Loan loss provisions were high, with N341.04 billion set aside specifically for customer loans, contributing to a total impairment charge of N426.29 billion.

Still, the group’s net interest income after impairments came in strong at N975.02 billion, up 203 percent from last year.

The group’s non-interest income was also a key driver of growth. Fees and commissions rose by 38 percent to N304.5 billion.

In addition, the group booked N549.99 billion in gains from financial instruments measured at fair value (FVTPL), contributing over 17 percent to gross earnings and a strong performance on the trading side.

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