First Bank Writes Off N748bn Bad Loans, Otedola Signals Stronger Future

First Bank Holdings Plc has decided to write off N748 billion in legacy bad loans to address long-standing non-performing loans and improve financial stability. The Chairman, Otedola, emphasized the need for transparency and a stronger financial foundation.

Despite a significant profit decline, the bank's underlying strength is highlighted by its ability to absorb losses without operational destabilization. Otedola expressed confidence in the bank's reset balance sheet, preparing for a recapitalization exercise and future expansion.

As part of its strategic plan, First Bank Holdings Plc plans to sell its stake in FBNQuest Merchant Bank Limited to EverQuest Group. This move is seen as a step towards optimizing capital allocation, improving capital efficiency, and supporting the bank's core commercial operations.