First Holdco, the parent company of Nigeria’s oldest financial institution, First Bank, has reported its strongest financial performance in more than 12 years as after-tax profit soared by 115.1 percent to N663.4 billion in the fiscal year ended December 2024, up from N308.4 billion posted in 2023, according to the company’s audited financial statement.
The stellar performance was driven primarily by a sharp increase in interest income, which surged by 155.3 percent to N2.39 trillion. Key contributors included income from loans and advances to customers (N1.36 trillion), investment securities at fair value (N436 billion), and loans to banks (N183 billion).
Net interest income for the year climbed 156.4 percent to N1.4 trillion, up from N546 billion in the previous year, indicating robust growth in the company’s core lending operations.
However, this growth also came with higher costs. Interest expense rose by 155.3 percent to N996 billion, largely due to a N615 billion expense on customer deposits, N210.1 billion on deposits from banks, and N169 billion from borrowings and other liabilities.
Revenue from external customers reached N3.27 trillion in 2024, with commercial banking contributing the bulk at N3.1 trillion. The merchant banking and asset management segment accounted for N103.5 billion, while other business lines generated N6.2 billion.
Fee and commission income increased by 30.8 percent to N244.8 billion, up from N187.1 billion in 2023, while the company saw a significant drop in foreign exchange losses—down to N64.9 billion from N334.2 billion the previous year.
Conversely, the group reported a net loss of N48.1 billion from the sale of investment securities, compared to a gain of N34.8 billion in 2023. Dividend income rose by 85.9 percent to N10.6 billion during the same period.
A breakdown of First Holdco’s cash flow statement reveals that net cash generated from operating activities rose sharply by 331 percent to N5 trillion, bolstered by improved performance in its core banking business. However, net cash used in investing activities widened to N1.58 trillion, driven largely by a N2.4 trillion outlay on investment securities.
Net cash used in financing activities also rose significantly to N463 billion from N35.3 billion in the previous year.
Cash and cash equivalents ended the year at N5.7 trillion, marking a 113.3 percent rise from N2.68 trillion in 2023.
The company’s earnings per share (basic and diluted) jumped to N1,831 in 2024 from N853 a year earlier, underlining the group’s strong profitability.
In light of the positive results, the Board of Directors has proposed a final dividend of 60 kobo per ordinary share of 50 kobo, amounting to a total payout of N25.1 billion for the 2024 financial year.
