Billionaire investor and Chairman of First HoldCo Plc, Femi Otedola, has attributed the company’s profit decline in the 2025 financial year to a massive N748 billion impairment charge, describing the decision as a deliberate and strategic clean-up of the group’s balance sheet.
Otedola explained that the impairment was taken to fully recognise legacy loan losses and other non-performing assets inherited from previous years, rather than postponing difficult decisions that could weaken the group’s future performance.
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According to him, the move was necessary to strengthen the financial foundation of First HoldCo and position the institution for sustainable growth in the coming years.
Despite the reported drop in profit, Otedola maintained that the underlying business remains resilient, stressing that transparency, strong governance, and long-term value creation remain the core focus of the board and management.
He noted that confronting impairment issues head-on will ultimately improve investor confidence and enhance the group’s capacity to deliver consistent returns.
Market analysts have also pointed out that while impairment charges often weigh heavily on short-term profitability, they can signal prudence and discipline when used to reset a company’s financial health.
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For First HoldCo, the N748 billion impairment is seen as a significant but strategic step toward rebuilding strength and ensuring stability in an increasingly challenging financial environment.
The chairman reaffirmed his confidence in the future of First HoldCo, stating that the difficult decisions taken in 2025 are aimed at safeguarding the institution’s long-term performance and restoring stronger profitability going forward.
Image Credit: Nairametrics
Source : Nairametrics
