Financial services group First HoldCo witnessed a 20.7 per cent slide in net profit to N289.8 billion for the first half of the year, compared to the same period of 2024 as bottom line took a hit from increased cost pressures.
Revenue rose to N1.7 trillion from N1.4 trillion, the largest chunk coming from its commercial banking division, according to its latest unaudited earnings report issued on Wednesday.
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The bank holding company reported a 75.7 per cent improvement in net interest income, a profitability metric which accounts for the difference between the cash made from loans and the money paid out for savings.
Net interest income for the period jumped to N904.8 billion from N514.9 billion during the period, thanks to a high interest rate environment in Nigeria, which allowed lenders to charge much for loans.
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Between January and June, the Central Bank of Nigeria twice kept its monetary policy rate unchanged at 27.5 per cent to sustain the trend of disinflation and contain upward pressures in price levels, following six straight hikes last year.
First HoldCo, the parent of Nigeria’s oldest commercial bank First Bank, put aside N185.4 billion, roughly double the amount it provisioned a year ago, to deal with potential bad debt.
Net fee and commission income jumped by one quarter to N138.7 billion, helped by an improvement in e-banking revenue.
The group incurred N53.7 billion in net loss from financial instruments at fair value through profit or loss, compared to a net gain of N432.2 billion in the corresponding period of last year, dealing a blow on operating profit.
READ ALSO: First HoldCo responds to ‘misrepresentation of facts by ThisDay & Arise TV’
Other operating expenses advanced 23.6 per cent higher, driven by advert & corporate promotions as well as maintenance.
Pre-tax profit dropped to N356.1 billion from N412 billion, while profit after tax stood at N289.8 billion, compared to N365.3 billion a year earlier.
In March, First Bank conducted the groundbreaking ceremony for its new 40-storeyed head office building project in Eko Atlantic City, Lagos.
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