First HoldCo Plc, formerly known as FBN Holdings Plc, has reported exceptional financial performance for the fiscal year ending December 31, 2024. The group’s gross earnings more than doubled, surging by an impressive 106% to reach N3.21 trillion, compared to N1.56 trillion in 2023. This remarkable growth can be primarily attributed to a substantial increase in interest income, which skyrocketed by 156% to N2.40 trillion, up from N936.68 billion in the previous year. This surge in interest income signifies the company’s effective utilization of its assets and robust lending activities in a favorable interest rate environment. The significant leap in gross earnings underlines First HoldCo’s strengthened market position and its ability to capitalize on prevailing economic conditions. Furthermore, the company witnessed growth across other key income streams, contributing to its overall financial success.
The robust performance of First HoldCo extends beyond its top-line growth. The group’s profitability metrics also witnessed substantial improvements. Profit before minimum tax soared by 124% to N796.47 billion in 2024, compared to N356.15 billion in 2023. Similarly, profit before income tax experienced a remarkable 125% increase, reaching N781.88 billion from N347.87 billion in the prior year. After accounting for income tax expenses of N118.39 billion, the group’s net profit for the year reached N677.01 billion, a substantial 118% increase from N310.37 billion in 2023. The profit attributable to equity holders of the parent entity also followed this upward trajectory, reaching N670.80 billion compared to N308.20 billion in the preceding year. These figures underscore the company’s enhanced operational efficiency and its ability to translate revenue growth into bottom-line profitability.
The growth in profitability translates to a significant increase in earnings per share. First HoldCo’s basic earnings per share reached 1,869 kobo, a remarkable 117% increase from 859 kobo in 2023. This impressive growth reflects the company’s enhanced profitability and its ability to generate greater returns for its shareholders on a per-share basis. The substantial increase in earnings per share underscores the overall success of First HoldCo’s financial strategies and its commitment to delivering value to its investors. This positive performance is likely to enhance investor confidence and attract further investment in the company.
Beyond interest income, First HoldCo experienced growth across other key revenue streams. Fee and commission income increased by a healthy 38% to N304.50 billion, up from N220.33 billion in 2023. This growth reflects the company’s success in expanding its service offerings and attracting more customers to its various financial products. Furthermore, the group’s foreign exchange gains improved significantly, recording a gain of N1.16 billion in 2024, a stark contrast to the foreign exchange loss of N334.23 billion incurred in 2023. This turnaround highlights the company’s improved management of foreign exchange risks and its ability to capitalize on favorable currency movements. The diversification of revenue streams contributes to greater financial stability and resilience for First HoldCo.
Alongside the impressive revenue and profit growth, First HoldCo also saw an increase in operating expenses. These expenses rose by 67% to N563.71 billion in 2024, compared to N338.25 billion in the previous year. A significant portion of this increase can be attributed to a rise in personnel expenses, which climbed to N308.47 billion from N175.90 billion in 2023. This increase in personnel costs likely reflects investments in talent acquisition and retention, as well as adjustments to compensation packages to remain competitive within the financial services industry. While the increase in operating expenses is noteworthy, it is crucial to consider it in the context of the significant revenue growth achieved during the same period. The company’s ability to manage operating costs effectively while scaling its operations will be a key factor in maintaining its profitability in the long run.
First HoldCo’s balance sheet also reflects its robust financial performance. Total assets grew by a substantial 56% to reach N26.52 trillion in 2024, compared to N16.94 trillion in 2023. This significant growth in assets underscores the company’s expansion and successful deployment of capital in various investment avenues. Customer deposits also witnessed a substantial increase of 61%, reaching N17.17 trillion in 2024 from N10.66 trillion in the previous year. This surge in customer deposits highlights the growing trust and confidence in First HoldCo’s brand and services, further solidifying its position as a leading financial institution. The growth in both assets and customer deposits provides a strong foundation for future growth and expansion. The rebranding from FBN Holdings Plc to First HoldCo Plc signals a strategic move to consolidate its brand identity and reflect its evolving business focus.
