Last Update30 Jul 25
WaneInvestmentHouse made no meaningful changes to valuation assumptions.
Key Highlights (Group Level):
Item H1 2025 (₦’million) H1 2024 (₦’million) Change
Interest Income 1,437,409 947,694 +52%
Interest Expense (532,582) (432,761) +23%
Net Interest Income 904,827 514,933 +76%
Impairment Charges (185,397) (92,986) +99%
Net Interest After Impairment 719,430 421,947 +70%
Net Fee & Commission Income 138,697 110,836 +25%
FX Gains/(Loss) 73,543 (165,046) Reversed loss
Net Gains FVTPL (53,668) 432,201 Downturn
Operating Profit 355,976 411,965 -14%
Profit Before Tax 356,149 411,990 -14%
Profit After Tax (Cont.) 283,770 360,265 -21%
Profit After Tax (Total) 289,772 365,300 -21%
EPS (Naira) 10.05 6.84 +47% YoY EPS Q2
🏢 HoldCo (Standalone) Performance:
- H1 2025 profit rose 500% YoY from ₦1.43bn to ₦8.55bn.
- Interest income grew by 219%, from ₦2.55bn to ₦8.15bn.
- Operating expenses rose moderately, but dividends (₦3.7bn) significantly boosted earnings.
- FX result dipped from ₦1.35bn gain in H1 2024 to ₦48m loss in H1 2025.
- EPS jumped from ₦0.04 to ₦0.20, reflecting strong holding company profit growth.
📌 Key Observations:
- Revenue Growth: Strong interest income growth (+52%) shows improved yield or asset growth.
- FX Reversal: The group posted FX gains of ₦73.5bn vs a ₦165bn loss last year, likely due to naira devaluation being hedged or better FX management.
- Cost Control: Despite high impairment charges (+99%), net interest income post-impairment still rose by 70%, suggesting core strength.
- Profit Decline: Net profit fell by 21% mainly due to unrealized losses on FVTPL instruments (₦53.7bn loss vs ₦432bn gain in 2024), impacting bottom line.
- Dividend Boost at HoldCo: The parent company’s profit was largely enhanced by ₦3.7bn dividend income—possibly from bank subsidiaries.
✅ Strengths:
- Strong top-line growth in core banking operations.
- FX income turned positive.
- Robust earnings from subsidiaries support HoldCo dividend income.
⚠️ Risks/Weaknesses:
- Heavy reliance on fair value gains in 2024; now turned into losses.
- Cost of risk (impairments) remains high.
- Bottom-line compression despite topline growth indicates margin pressures.
📈 Investment View:
First HoldCo Plc remains fundamentally strong with solid interest income and steady fee earnings. However, the volatility in fair value instruments and rising impairment charges weigh on profitability. Long-term prospects are positive, especially with signs of improved FX management and dividend stream from subsidiaries.
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Disclaimer
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