Femi Otedola, chairman of First HoldCo, has defined that the group’s sharp revenue decline adopted a deliberate resolution to completely recognise legacy non-performing loans.
He described the transfer as a crucial reset pushed by regulatory strain and long-term balance-sheet self-discipline.
In a press release launched on X after the bank printed its newest monetary outcomes, Otedola stated First HoldCo absorbed a one-time cost of ₦748 billion to scrub up previous dangerous loans quite than defer losses into future intervals.
“At First HoldCo we determined to scrub home correctly. We took an enormous one time hit of ₦748bn to confess previous dangerous loans as a substitute of pretending they don’t exist. That’s the reason revenue appears prefer it crashed by 92%. Painful headline, however it’s a severe long run transfer.”
He attributed the timing of the choice to regulatory strain from the Central Bank of Nigeria, noting that banks are actually being compelled to cease deferring asset-quality points.
“Why do that now? As a result of the @cenbank is pushing banks to cease kicking issues down the highway. So First HoldCo mainly closed the chapter on messy loans from previous years which sends a transparent message that borrowing has penalties and it helps rebuild belief.”
Regardless of the steep revenue drop, Otedola harassed that the group’s core earnings power remained intact, offering the capability to soak up the write-off with out destabilising operations.
“The important thing level is that this: our enterprise itself is STILL robust. It made ₦2.96tn in curiosity revenue and ₦1.91tn in web curiosity revenue, which gave it the power to take the clear up and nonetheless keep standing.”
Wanting forward, Otedola stated the clean-up positions FirstBank Nigeria and the broader holding firm for the subsequent part of regulatory recapitalisation and balance-sheet enlargement.
“Now at @FirstBankngr and past we go into 2026 lighter, cleaner and higher ready for the recapitalisation period and severe progress.
Unhealthy loans cleared + robust revenue engine + long run considering = actual worth creation.”
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