First HoldCo Plc, chaired by Nigerian billionaire Femi Otedola, has made headlines once again, this time for pulling in over $1 billion in gross earnings in just six months. 

The banking group, which owns First Bank of Nigeria, posted a remarkable $1.07 billion in gross earnings for the first half of 2025, signaling a strong step forward in its ongoing transformation.

Although profits took a dip due to heavier loan impairment charges, the firm’s overall financial health seems to be strengthening under Otedola’s direction.

Reform-focused strategy drives growth

Since assuming a more active role at First HoldCo, Femi Otedola has been pushing bold reforms aimed at transparency, improved governance, and long-term growth. His influence is already showing results. 

The group’s earnings surged by 18% year-on-year, thanks in large part to stronger interest and fee-based income. Interest income alone climbed to nearly $933 million, while income from fees and commissions hit just under $110 million.

Despite an environment shaped by tighter regulation from the Central Bank of Nigeria (CBN), Otedola has embraced a more aggressive cleanup of the bank’s loan book, a move that many see as necessary, even if it hurts short-term profits.

Profits down but for a purpose

Profit before tax dropped to $232.3 million, largely because the company more than doubled its impairment charges to meet new CBN rules. 

The central bank now requires all banks to fully account for non-performing loans, forcing many to absorb losses upfront.

Rather than resist, First HoldCo leaned in. By increasing its loan provisions from $60.6 million to over $120 million, the company has taken a calculated hit today in order to build a stronger balance sheet tomorrow. Analysts say this bold approach could position the group as a more resilient player in the long run.

First HoldCo has a cleaner balance sheet and a bigger asset base

Even with the rise in provisions, First HoldCo’s total assets climbed to $17.7 billion, up from $17.3 billion at the end of 2024. Retained earnings and shareholder equity also grew, further indicating the group’s improving fundamentals. 

The company maintains that its diverse investment and lending portfolio continues to shield it from broader economic shocks.

In a statement, the group affirmed its commitment to paying dividends and driving long-term value. “We remain focused on managing risk responsibly and creating value for shareholders,” the company said.

Otedola’s steady hand

As chairman, Femi Otedola holds just under 16% of the company, making him the largest individual shareholder. Beyond the numbers, his leadership is shaping First HoldCo’s reputation. 

Known for restructuring companies like Geregu Power and Forte Oil, Otedola is now applying similar discipline to the financial sector.

Under his watch, board oversight has been tightened, financial disclosures have become more transparent, and investor confidence appears to be returning. Shares of First HoldCo are already up 24% this year, proof that the market is responding positively to the changes.