FBN Holdings Plc (FBN HoldCo) is facing mounting scrutiny from investors and market analysts after reporting a N407.8 billion loss for 2025 alongside more than N1 trillion in operating expenses, triggering concerns over governance, cost control and oversight.
The figures were disclosed in the group’s unaudited financial results for the year ended December 31, 2025, released in late April 2026. The results show a sharp deterioration in performance at one of Nigeria’s oldest banking institutions, driven by large impairment charges and a surge in operating costs.
At the centre of the losses is a N748.1 billion impairment charge on loans, widely interpreted by analysts as the crystallisation of credit risks accumulated over several years.
Market watchers say the scale of the write-down points to structural weaknesses in lending practices and risk management.
“Impairment losses of this magnitude typically reflect long-standing issues in credit underwriting and monitoring,” a Lagos-based analyst said on May 3. “They do not emerge suddenly.”
The group also recorded an operating loss of N337.5 billion, underscoring pressure on its core banking business.
Beyond the losses, attention has turned to the bank’s spending profile. Financial disclosures show “other operating expenses” rose sharply to N809.4 billion in 2025, a near sixfold increase from the previous year.
Analysts say the size of the expense line, without detailed breakdown, raises questions about cost transparency and internal controls.
“The lack of clarity around such a large expense category warrants closer examination,” another analyst said.
Advertising and promotional costs also rose significantly to N185 billion during the year, while personnel expenses climbed to N385.9 billion, further adding to investor concerns over cost discipline in a loss-making period.
The spending comes as the group considers plans to develop a new corporate headquarters in Eko Atlantic, a high-profile real estate project that has drawn criticism from some stakeholders who argue that capital allocation should prioritise balance sheet recovery.
FBN HoldCo has not publicly detailed timelines or funding structure for the proposed headquarters.
The financial disclosures have also raised broader questions about oversight. Analysts say the scale of deterioration in asset quality and profitability suggests that early warning indicators may not have been adequately addressed.
“There are concerns about whether risk signals were identified and acted upon in a timely manner,” a market observer said.
The results, which remain subject to audit, have intensified calls among some shareholders for a more detailed review of the bank’s loan book and expense structure.
Investor groups are also urging stronger disclosure standards and clearer communication from management on recovery plans.
FBN HoldCo is a major player in Nigeria’s banking sector through its flagship subsidiary, First Bank of Nigeria, with operations spanning retail, corporate and commercial banking.
The group’s performance is closely watched by investors given its systemic importance and long history in the financial system.
The 2025 results mark a sharp contrast to prior years and come at a time when Nigerian banks are navigating tighter regulatory conditions, foreign exchange volatility and evolving capital requirements.
Market participants say restoring confidence will depend on a combination of improved asset quality, stricter cost controls and stronger governance practices.
Some analysts note that the impairment recognition, while negative in the short term, could represent a necessary clean-up of the balance sheet if followed by disciplined risk management.
However, they caution that sustained recovery will require consistent execution and transparency.
“The immediate priority is stabilisation,” an analyst said. “That includes restoring profitability, improving disclosures and reinforcing governance structures.”
Regulatory authorities have not issued a formal statement on the results as of May 4, but analysts expect closer supervisory attention given the scale of the losses and the institution’s systemic relevance.
For investors, the latest disclosures highlight the risks associated with weak oversight and rising costs, while also raising questions about capital allocation priorities.
As the group prepares to release audited accounts in the coming months, market focus is expected to remain on management’s response, potential corrective measures and the outlook for earnings recovery.
The developments place FBN HoldCo at a critical juncture, with its next steps likely to determine whether it can rebuild investor confidence and stabilise its financial position in the near term.