First Bank Cleans House with Bold N748 Billion Write-of

First Bank Cleans House with Bold N748 Billion Write-off

In a bold move that’s sending ripples through Nigeria’s banking landscape, First Bank Holdings Plc has decided to hit the reset button by writing off a staggering N748 billion in bad loans. Yes, you read that right. The decision, though it led to a jaw-dropping 92% plunge in reported profits, is being hailed as a crucial step for long-term stability.

Group Chairman Femi Otedola took to social media to explain this difficult but necessary action, assuring stakeholders that the bank is not just surviving, but thriving beneath the surface. With a beefy N2.96 trillion in interest income, First Bank is proving it can weather this storm just fine.

“At First HoldCo, we decided to clean house properly,” Otedola said, slicing through the chatter. “We took a huge one-time hit of N748 billion to admit old bad loans instead of pretending they do not exist. That is why profit looks like it crashed by 92%.” Talk about cutting straight to the chase!

This clean-up effort isn’t just a financial maneuver; it’s a strategic play that aligns with the Central Bank of Nigeria’s call for transparency. Otedola emphasized the importance of facing legacy issues head-on rather than kicking them down the road like a worn-out football. It’s a message about accountability that the bank hopes will resonate with its borrowers and stakeholders alike.

“Why do this now? Because the CBN is pushing banks to stop kicking problems down the road,” he noted. The aftermath of this write-off might sting temporarily, but Otedola believes it lays a stronger foundation for the bank’s future. By tackling these longstanding non-performing loans, First Bank is not just cleaning up its balance sheet but also rebuilding trust with investors and customers.

On the earnings front, Otedola was quick to assure everyone that the bank remains in solid shape. With N1.91 trillion in net interest income, First Bank is flexing its financial muscles, proving that it can absorb these losses without losing composure. “The key point is this: our business itself is still strong,” he emphasized. Strong earnings back up those claims, bringing a silver lining to what could have been a very dark cloud.

Looking ahead, Otedola is optimistic about the future. With the balance sheet reset under their belt, First Bank is gearing up for a recapitalization exercise and future growth. He envisions entering 2026 with a lighter, cleaner slate, ready to take on new challenges. “Bad loans cleared, strong income engine, long-term thinking equals real value creation,” Otedola concluded. You have to love that forward-thinking attitude!

In other news, First HoldCo Plc has recently sold its entire stake in FBNQuest Merchant Bank Limited to EverQuest Group, as part of an overall strategy to enhance capital allocation and efficiency. It’s all about fine-tuning operations and making sure the core commercial banking activities shine.

So, here’s to First Bank Holdings Plc—a bank that isn’t afraid to take the tough calls for the sake of a brighter, more stable tomorrow!