LunagisthubFirstBank’s Strategic Move: Writing Off N748 Billion in Bad Loans
In a bold move to secure long-term financial stability, FirstBank’s Group Chairman, Femi Otedola, has revealed that the bank wrote off N748 billion in legacy non-performing loans. This decision, announced via a post on Otedola’s X handle, was made in line with the Central Bank of Nigeria’s directive encouraging banks to confront non-performing loans openly .
According to Otedola, the write-off was a deliberate strategy aimed at strengthening the bank’s financial health and restoring confidence among stakeholders. The bank’s decision to “clean house properly” was motivated by the need to address problematic loans accumulated over previous years and to position itself for future growth .
The write-off resulted in a significant 92% drop in reported profits, with the bank’s profit after tax falling to N52.75 billion in the 2025 financial year. However, Otedola emphasized that the decision was a serious long-term move, aimed at ensuring the bank’s stability and growth .
Despite the impact on earnings, FirstBank’s core operations remain robust, with the bank generating N2.96 trillion in interest income and N1.91 trillion in net interest income. These figures demonstrate the bank’s ability to absorb the write-off and still maintain operational stability .
With the write-off behind it, FirstBank is poised for growth and is better positioned to meet the Central Bank of Nigeria’s recapitalization requirements. As Otedola noted, “Now at First Bank and beyond, we go into 2026 lighter, cleaner, and better prepared for the recapitalization era and serious growth” .
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