First Bank’s parent took a ₦748B charge for bad loans, slashing profits 92%, but improved long-term stability.

First HoldCo Plc, parent of First Bank, took a ₦748 billion one-time charge in 2025 to write off bad loans, causing a 92% drop in profits, but Chairman Femi Otedola called it a necessary step to clean up the balance sheet and address legacy non-performing loans. The move, driven by pressure from Nigeria’s Central Bank, aimed to improve long-term stability and transparency ahead of a banking sector recapitalization deadline. Despite the profit decline, the company reported strong core results, including ₦2.96 trillion in interest income and a 36.3% year-on-year rise in net interest income, positioning it for sustainable growth.