By Joy Baba-Yesufu
First Holdco, the parent company of Nigeria’s oldest financial institution, First Bank, has reported its highest after-tax profit in over 12 years, posting a 115.1% year-on-year increase to N663.4 billion for the fiscal year ended December 2024.
According to its audited financial statement, the group’s performance was primarily driven by a surge in interest income, which grew by 155.3% to N2.39 trillion. Key contributors included: Loans and advances to customers: N1.36 trillion, Investment securities at fair value: N436 billion and Loans and advances to banks: N183 billion
Net interest income rose by 156.4% to N1.4 trillion, compared to N546 billion in 2023.
The bank’s interest expense also increased significantly to N996 billion, reflecting rising costs tied to: Customer deposits: N615 billion ,Deposits from banks: N210.1 billion also Borrowings and others: N169 billion
Diversified Revenue and Performance Metrics First Holdco’s revenue from external customers stood at N3.27 trillion, broken down into:
Commercial banking group: N3.1 trillion Merchant banking and asset management: N103.5 billion Other businesses: N6.2 billion Additional financial highlights include:
Net fee and commission income: N244.8 billion (up 30.8% from N187.1 billion)
Dividend income: N10.6 billion (up 85.9% from N5.7 billion)
FX loss: N64.9 billion, significantly lower than N334.2 billion in 2023
Net loss on investment securities: N48.1 billion, a reversal from a N34.8 billion gain in the previous year
Cash Flow and Shareholder Returns
The group’s operating cash flow surged by 331% to N5 trillion, a major boost from N1.16 trillion in 2023. However:
Investing activities recorded a net outflow of N1.58 trillion, largely due to a N2.4 trillion investment in securities.
Financing activities showed a net outflow of N463 billion, compared to N35.3 billion in the previous year.
Total cash and cash equivalents rose to N5.7 trillion, marking a substantial 181.3% increase from N2.68 trillion in Q1 2023.
Earnings per share (EPS) more than doubled to N1,831, up from N853 in 2023.
Dividend Declaration
The Board of Directors has proposed a final dividend of 60 Kobo per ordinary share of 50 Kobo, amounting to N25.1 billion for FY2024.
