First Bank’s 2025 report reveals a 70% profit dip due to credit risks, despite a record 1,111% surge in digital wallet “electronic purse” deposits.
The release of First HoldCo Plc’s FY2025 audited financial statements has sent ripples through the Nigerian financial sector. On the surface, the numbers present a startling contradiction: a 70% collapse in headline profit, dropping from ₦677 billion in 2024 to ₦139.5 billion in 2025, contrasted against a record-breaking expansion of its digital transaction rails and total asset base.
For industry watchers, these results are a litmus test for the Nigerian economy. According to a recent report by Technext, the bank’s core operations remain robust, but they are being squeezed by massive impairment charges and the volatile “fair value” of financial instruments.
The Rise of the Electronic Purse
One of the most significant revelations in the 2025 report is the explosive growth of the “Electronic Purse.” This category, which typically represents digital wallet balances and funds held for agent banking, surged by a staggering 1,111%, moving from ₦5.4 billion to ₦65.4 billion.
This growth mirrors a broader trend across the Nigerian fintech landscape. As noted by BusinessDay, the shift toward agency banking and mobile wallets is no longer exclusive to neobanks. First Bank’s massive agent network, “FirstMonie,” has successfully captured a significant share of the unbanked and underbanked market, effectively turning the legacy institution into a fintech powerhouse.
Navigating a High-Risk Credit Landscape
While digital deposits are soaring, the bank is bracing for an impact on its loan book. First Bank set aside ₦826.3 billion for expected credit losses in 2025. This massive impairment charge indicates a deteriorating macroeconomic environment where inflation and currency fluctuations are hampering the ability of borrowers to repay loans.
This caution is echoed in ICIR Nigeria, which highlights that the Central Bank of Nigeria’s (CBN) hawkish monetary policy has pushed interest rates to record highs. While high rates boost interest income, which reached ₦2.99 trillion for First Bank, they also increase the risk of default across the commercial and retail sectors.
Transaction Fees: The New Profit Engine
Perhaps the most telling metric for the future of Nigerian banking is the source of the bank’s “safe” income. Combined revenue from electronic banking and funds transfer fees reached ₦155.3 billion in 2025. Remarkably, this digital fee income now exceeds the bank’s total annual profit.
This confirms a fundamental shift in the industry: transaction infrastructure is more resilient than lending. While the bank lost ₦706 billion in “fair value” adjustments, accounting for the massive profit dip, its role as a facilitator of digital payments remains its most stable revenue stream. This aligns with MEXC Exchange, which shows that instant payment volumes in Nigeria continue to grow despite broader economic challenges.
Conclusion: A Strategic Pivot
First Bank’s 2025 results tell a story of a legacy giant successfully pivoting into the digital age while weathering a perfect storm of macroeconomic volatility. With total assets crossing ₦27.25 trillion and customer deposits increasing by ₦1.71 trillion, the bank’s foundation remains unshakable. For investors and fintech competitors, the message is clear: the future of Nigerian finance lies in the “wallet,” and the battle for the digital consumer is only just beginning.
