First Bank of Nigeria Holdings Plc (First Holdco) announced a remarkable financial performance for the full year ended December 31, 2024. The company reported a pre-tax profit of N781.88 billion, reflecting an impressive 124.77% year-on-year (YoY) growth compared to N347.78 billion in 2023.
This achievement underscores First Holdco’s robust operational efficiency, strategic growth initiatives, and ability to navigate a challenging economic environment. The results, detailed in a recent audited financial statement, showing significant growth across key metrics, positioning the group as a top performer in Nigeria’s financial sector.
Key Financial Highlights for 2024
Profit After Tax (PAT): First Holdco’s profit after tax soared to N677 billion in 2024, a substantial increase from N301.1 billion in 2023, representing a 124.82% YoY growth. This translated to an earnings per share (EPS) of N18.69, up from N8.37 in 2023, reflecting strong value creation for shareholders.
Gross Earnings: The group recorded gross earnings of N2.58 trillion, a 134.92% YoY surge from N1.1 trillion in 2023. This growth was driven by a 151.09% increase in interest income, which reached N1.67 trillion, fueled by loans and advances to customers and investment securities.
Net Interest Income: Net interest income rose by 145.16% to N1.05 trillion in 2024, compared to N429 billion in 2023, supported by higher yields from lending activities and investment portfolios.
Dividend Payout: Shareholders are set to receive a final dividend of N0.60 per share, an increase from N0.40 per share in 2023, signaling confidence in sustained profitability and a commitment to rewarding investors.
Balance Sheet Growth: Total assets expanded by 74.29% to N18.25 trillion, driven by a 92.29% increase in loans and advances to customers, which reached N7.93 trillion. Customer deposits also grew by 64.84% to N12.09 trillion, reinforcing First Holdco’s strong liquidity position.
Operational Efficiency: Despite rising operating expenses, which increased by 105.24% to N622.8 billion, the group maintained a cost-to-income ratio that reflects disciplined cost management amid inflationary pressures.
Drivers of Growth
First Holdco’s exceptional performance in 2024 was propelled by several strategic factors:
Core Lending Business: Interest income from loans and advances to customers accounted for a significant portion of gross earnings, with a 151.09% YoY increase to N1.67 trillion. This highlights the group’s ability to capitalize on high-yield lending opportunities in a rising interest rate environment.
Investment Securities: Income from investment securities contributed N468.5 billion to interest income, driven by a 149.65% YoY growth, reflecting strategic portfolio diversification.
Digital and Transaction Banking: Growth in non-interest income, particularly from fees and commissions, was supported by increased adoption of digital banking platforms and transaction services, aligning with Nigeria’s growing fintech ecosystem.
Regional Expansion: The group’s operations across Nigeria and other African markets, including Ghana, Senegal, and the Democratic Republic of Congo, bolstered revenue streams, with the Nigeria segment remaining the dominant earnings driver.
Market Performance
As of April 3, 2025, First Holdco’s share price stood at N36.40, reflecting a year-to-date (YtD) gain of 58.26% in 2024. This performance shows strong investor confidence in the group’s growth trajectory. The proposed N0.60 per share dividend, payable to shareholders registered by March 13, 2025, further enhances its attractiveness to investors.
Notably, Femi Otedola increased his total (direct and indirect) shareholdings by 108.83%, from 2.03 billion shares in 2023 to 4.23 billion shares in 2024, bringing his stake to 11.80% of the company’s total shares.
First Holdco is well-positioned to sustain its growth momentum in 2025, supported by Nigeria’s expanding fintech ecosystem, which attracted over $2 billion in investments in 2024. However, challenges such as rising interest expenses on customer deposits (up 148.71% YoY) and potential regulatory pressures in Nigeria’s financial sector could impact net interest margins.
The group’s focus on digital innovation, cost management, and regional diversification will be critical to maintaining its competitive edge.
Stock Performance
As of today First Holdco’s share price stood at N24.60, reflecting a 12.3% YtD decline from N28.05 at the start of 2025. This followed a volatile period, with the share price dropping to N25 on April 11, 2025, amid negative investor sentiment due to delays in releasing the audited 2024 financial statement, which awaited Central Bank of Nigeria (CBN) approval. The group’s market value closed at N1.046 trillion on April 11, 2025, after a 4% week-on-week loss.
