The board of First Holding Company Plc, on Friday presented its much awaited financials for the year ended December 31, 2024, indicating over 100% growth in gross earnings and net profit for the period.
Gross earnings closed the year at N3.212tr, up by N1.65tr or 105.71% from N1.561tr in the corresponding full-year of 2023 to N3.212tr last year, a figure that would have been far better, but for the foreign exchange loss recorded within the period, which was however significantly lower than previous year’s level. Profit before tax improved from N356.866bn to N781.883bn, representing a growth by N434.017bn, or 124.77%. Despite the N78.96bn or 200.24% in income tax expense, profit after tax stood at N663.49bn, up by N366.635bn or 118.13% from the N31.37bn reported in thee similar period of 2023. The net profit, therefore, translated to Earnings Per Share of N18.69, compared to the previous N8.59 each. Of the net profit, the board has recommended a total dividend of N25.125bn, up from N14.358bn, translating to 60 kobo per share.
Details of the scorecard showed that interest income remained the group’s lifeblood, like every other holding companies that includes a bank, accounting for N2.397tr, soaring by N1.45tr or 154.88% from N936.682bn. Interest income from customer loans and advances grew from N609.15bn to N1.363tr; while investment securities accounted for N436.843bn from N145.971bn. Investment securities contributed N296.811bn compared to N136.754bn; followed by loans and advances to banks which pooled N183.258bn from N48.331bn. Investment securities at fair value through profit or loss rose from N1.811bn to N117.001bn.
The group was however unable to keep its interest expense significantly in check, as it grew by N605.725bn or 155.16% to N996.119bn from N390.394bn, with interest paid on customer deposits amounting to N615.153bn from N251.663bn; deposits from banks earned N210.117bn, up from N52.305bn; while borrowings got N169.008bn in interests, up from N85.838bn; and lease liability, N1.831bn from just N588m. This resulted in net interest income of N1.401tr, compared with the N54.288bn reported in the prior year.
Impairment charge on financial instruments rose by N201.346bn or 89.63% at N224.948bn, from N426.294bn; resulting in net interest income after impairment charge for losses of N975.015bn, from N32.340bn.
Fee and commission income could only grow from N220.328bn to N304.498bn, up by about N84.28bn or 38.2%, boosted by electronic banking fees totaling N77.014bn, up from N66.343bn; credit related fees rose from N17.485bn to N46.7bn; funds transfer and intermediation fees rose to N46.594bn from N20.286bn; and other fees and commissions, N46.39bn, up from N3.492bn. Fee and commission expense increased to N59.609bn from N33.256bn, growing by N26.353bn or 79.24%. Acceptance cost (Alternative channels) rose to N40.527bn from N14.759bn; SMS charge was flat at N11.939bn, from N11.023bn in the previous year; just like agent banking expense, which rose to N5.929bn from N5.357bn; as internet/web expenses fell from N2.117bn to N1.214bn. This translated to net fee and commission income of N244.889bn, representing a N57.817bn or 30.91% from the previous N187.072bn.
Foreign exchange loss dropped from N334.23bn to N64.945bn. Specifically, revaluation loss on foreign currency balances fell to N90.965bn from N333.81bn in 2023; net monetary loss (the group’s net position arising from applying IAS 29 ‘Financial Reporting in Hyperinflationary economies increased marginally from N9.025bn to N10.474bn; just as FX trading gain rose to N36.494bn from N8.605bn. The group reported net losses on sale of investment securities amounting to N48.059bn, compared to the previous N34.848bn net gain. Net gains from financial instruments at face value slipped from N678.432bn in 2023 to N549.989bn; dividend income rose from N5.742bn to N10.657bn; just as other operating income leaped to N62.546bn from N19.151bn; while personnel expenses flew to N308.472bn from N175.901bn; depreciation of property and equipment increased to N44.384bn from N29.053b; amortisation of intangible assets grew from N13.825bn to N17.598bn.
Operating expenses increased from N338.248bn tot N563.706bn, driven by maintenance expenses of N134.76bn from N70.816bn; ahead of the N74.965bn paid to the Asset Management Corporation of Nigeria as resolution cost, up from N51.121bn; just as adverts and corporate promotions gulped N75.934bn from N32.249bn; among others.
On the balance sheet, total assets improved by N9.586tr or 45.6% from N16.937tr to N26.524tr, driven by customer loans and advances which rose to N9.767tr from N6.359tr; just as total assets improved from N15.19tr to N23.728tr, lifted by customer deposits amounting to N17.17tr from N10.663tr. Shareholders’ fund, therefore rose from N1.747tr to N2.795tr.
A breakdown of the numbers shows that commercial banking group earned N3.102tr, representing the lion’s share of revenue, followed from afar by the investment banking and asset management group. Commercial banking also pooled N2.361tr of interest income; N975.257bn in interest expense; N416.875bn in impairment charge; and contributed N621.712bn to net profit; while investment banking recorded N104.224bn; N33.404bn and N20.854bn; N9.413bn; and N45.744bn.
Another revelation from the audited financial report was that Olufemi Otedola, the group’s chairman, further consolidated its hold on Nigeria’s oldest surviving institution, raising his direct and indirect holding to 11.80%, ahead of the 8.65% stake held by Barbican Capital Limited owned by the former chairman, Oba Otudeko at the end of the 2024 full-year. Otudeko, a businessman and chairman of Geregu Power Plc, a power generation company listed on the Nigerian Exchange, now holds 1,689,811,721 units, or 4.71% of First Holdco directly, and another 2,543,981,608 or 7.09% through Calvados Global Services Limited.
A shareholder analysis of the group showed that retail investors own 51.59%; domestic institutional investors, 47.52%; foreign institutional investors, 0.63% and government relative holdings, 0.26%.
