In a stellar financial performance for the fiscal year 2024, First Holdco, the parent company of First Bank and Nigeria’s oldest banking institution, has reported a profit after tax of N663.4 billion—its highest in over a decade.
This marks a 115.1 per cent increase from the N308.4 billion posted in 2023, reflecting strong growth across all major financial indicators.
In recognition of this impressive result and as a gesture of appreciation to its loyal shareholders, the Board of Directors has proposed a final dividend of 60 Kobo per ordinary share of 50 Kobo each. This amounts to a total payout of N25.1 billion for the year.
Robust growth in core banking operations
The group’s performance was largely driven by a surge in interest income, which climbed 155.3 per cent to N2.39 trillion in 2024.
This was primarily fueled by loans and advances to customers, which contributed N1.36 trillion; investment securities valued at fair value, contributing N436 billion; and loans to banks, which stood at N183 billion.
Net interest income also experienced a significant leap, rising by 156.4 per cent year-on-year to N1.4 trillion from N546 billion recorded in 2023.
Rising costs amid expansion
Interest expenses grew in tandem with the bank’s expanding lending and investment activities.
Total interest expenses rose by 155.3 per cent to N996 billion, comprising N615 billion in costs from customer deposits, N210.1 billion from interbank deposits, and N169 billion from other borrowings and financial obligations.
Despite rising costs, the group’s ability to grow earnings remained resilient, with its basic and diluted earnings per share (EPS) climbing sharply to N1,831 in 2024 from N853 the previous year.
Strong performance across business segments
Revenue from external customers reached N3.27 trillion, underpinned by its commercial banking business, which generated N3.1 trillion.
The merchant banking and asset management division contributed N103.5 billion, while other segments accounted for N6.2 billion.
Net fee and commission income grew to N244.8 billion in 2024, reflecting a 30.8 per cent increase over the N187.1 billion recorded in the prior year.
Improved operational efficiency
First Holdco also managed to significantly reduce its foreign exchange loss, which fell to N64.9 billion from the previous year’s N334.2 billion.
However, the group recorded a net loss of N48.1 billion on the sale of investment securities, compared to a gain of N34.8 billion in 2023.
Dividend income rose to N10.6 billion, an 85.9 per cent increase from N5.7 billion the previous year, further boosting non-interest income.
Strong cash flow position
The group’s net cash flow from operating activities rose sharply to N5 trillion in 2024, up 331 per cent from N1.16 trillion in 2023, driven by strong contributions from its core banking operations.
However, net cash used in investing activities stood at a negative N1.58 trillion, compared to N319 billion the previous year, largely due to the N2.4 trillion purchase of investment securities.
Financing activities also consumed cash, with a net outflow of N463 billion, compared to N35.3 billion in 2023.
As a result, cash and cash equivalents saw a significant jump, rising to N5.7 trillion—a 181.3 per cent increase from N2.68 trillion recorded in the first quarter of 2023.
