First HoldCo profit crashes by 92% after writing off N748bn bad loans

The profit of First HoldCo Plc has crashed by 92 percent after the parent company of First Bank of Nigeria wrote off N748 billion bad loans in one swoop.

 

Billionaire businessman and Chairman of First HoldCo Plc, Femi Otedola, made this known while defending the decision.

 

In a series of tweets on his X handle on Saturday, Otedola said it was the best decision for the company instead of carrying over loans that had become bad.Online TV streaming services

 

He equally said it aligns with the position of the Central Bank of Nigeria (CBN), adding that this did not mean the companies in First HoldCo Plc were less profitable or would go under.

 

He tweeted: “At First HoldCo we decided to clean house properly.

 

“We took a huge one-time hit of ₦748bn to admit old bad loans instead of pretending they do not exist.

 

“That is why profit looks like it crashed by 92%.

 

“Painful headline, but it is a serious long-term move.”

 

Offering an explanation on why the decision was taken, Otedola further tweeted: “Why do this now?

 

“Because the @cenbank is pushing banks to stop kicking problems down the road.

 

“So First HoldCo basically closed the chapter on messy loans from past years which sends a clear message that borrowing has consequences and it helps rebuild trust.”

 

On fears this decision could affect the businesses of First HoldCo Plc, Otedola said: “The key point is this: our business itself is STILL strong.

 

“It made ₦2.96tn in interest income and ₦1.91tn in net interest income, which gave it the strength to take the clean up and still stay standing.

 

“Now at @FirstBankngr and beyond we go into 2026 lighter, cleaner and better prepared for the recapitalisation era and serious growth.

 

“Bad loans cleared + strong income engine + long term thinking = real value creation 💪🏾🏦🐘 …. F.Ote💲.”