First Holdco records highest profit in 12 years, posts N663.4bn in 2024

• Published On: 19 April 2025 at 19:48

First Holdco, the parent company of Nigeria's oldest financial institution, First Bank, has reported its best financial performance in more than 12 years, with after-tax profit increasing by 115.1 percent to N663.4 billion in the fiscal year ended December 2024, up from N308.4 billion in 2023, according to the company's audited financial statement.

The excellent performance was principally driven by a 155.3 percent growth in interest income, which reached N2.39 trillion. Income from loans and advances to clients (N1.36 trillion), investment securities at fair value (N436 billion), and bank loans (N183 billion) were also significant sources.

Net interest income for the year increased by 156.4 percent to N1.4 trillion, up from N546 billion the previous year, reflecting strong growth in the company's main lending operations.

However, this expansion also resulted in greater costs. Interest expense increased by 155.3 percent to N996 billion, mostly due to an N615 billion expense on client deposits, N210.1 billion on bank deposits, and N169 billion on borrowings and other obligations.

Revenue from external customers reached N3.27 trillion in 2024, with commercial banking accounting for the majority at N3.1 trillion. The merchant banking and asset management division generated N103.5 billion, while the remaining business lines contributed N6.2 billion.

Fee and commission income climbed by 30.8 percent to N244.8 billion, up from N187.1 billion in 2023, while foreign exchange losses fell significantly to N64.9 billion, down from N334.2 billion the year before.

In contrast, the group reported a net loss of N48.1 billion from the sale of investment securities, with a gain of N34.8 billion in 2023. Dividend income increased by 85.9 percent to N10.6 billion during the same time.

A breakdown of First Holdco's cash flow statement shows that net cash generated from operating activities increased by 331 percent to N5 trillion, boosted by stronger performance in its main banking business. However, net cash spent in investing operations increased to N1.58 trillion, owing partly to a N2.4 trillion outlay on investment securities.

Net cash used for financing activities increased dramatically to N463 billion from N35.3 billion the previous year.

Cash and cash equivalents concluded the year at N5.7 trillion, up 113.3 percent from N2.68 trillion in 2023.

The company's earnings per share (basic and diluted) increased to N1,831 in 2024 from N853 a year ago, highlighting the group's robust profitability.

In light of the outstanding performance, the Board of Directors has suggested a final dividend of 60 kobo per ordinary share of 50 kobo, totalling N25.1 billion for the fiscal year 2024.