₦airaland Forum

FirstHoldco Plc delivered a masterclass performance in its first-quarter 2026 financials, recording a 72% year-on-year profit before tax (PBT) growth

Profit before tax (PBT) jumped to ₦321 billion from ₦186.47 billion in the corresponding period of 2025, supported by steady interest-earning capacity and robust fee income generation.

The first quarter of 2026 marked a definitive pivot for FirstHoldCo Plc, as the parent entity of Nigeria’s oldest commercial bank re-established itself as a financial powerhouse.

Emerging from a period of aggressive balance sheet restructuring characterized by massive legacy debt write-offs in late 2025, the group’s Q1 2026 performance represents a “phoenix-like” Strategic reset.

Post its 2025 balance-sheet cleanup, FirstHoldco’s Q1 2026 results also established the group as the second-largest Nigerian lender by absolute profit before tax, trailing only Zenith Bank.

In Q1, 2026, Zenith Bank reported PBT of ₦360.91 billion, FirstHoldCo ₦321 billion, GTCO ₦302.89 billion, Access Holdings ₦272.2 billion and UBA ₦160.65 billion.

This renaissance is not merely a product of the high-interest-rate environment currently prevailing in Nigeria, where the Central Bank of Nigeria (CBN) has maintained its hawkish stance with a 26.5% Monetary Policy Rate (MPR) to anchor inflation.

Rather, it is the result of a deliberate “kitchen-sinking” of bad assets in the 2025 financial year, which saw the group take a historic ₦826.3 billion impairment charge to resolve historical asset quality concerns once and for all.

This strategic “cleansing” has liberated the balance sheet to capture the full upside of the current lending cycle, allowing FirstHoldCo to lead the market in the most critical measures of shareholder value creation.

The Profitability Outperformer: Return on Equity Leadership

FirstHoldCo’s standout metric for the first quarter of 2026 is its Return on Equity (ROE). This parameter serves as the ultimate barometer for management’s ability to generate earnings from the capital entrusted to them by shareholders.

For Q1 2026, FirstHoldCo delivered a post-tax ROE of 31.6%, effectively eclipsing the entire FUGAZ group. This represents a staggering turnaround from the 4.6% recorded in December 2025, which was heavily weighed down by the balance sheet reset.

The leadership in ROE is particularly noteworthy given the simultaneous recapitalization efforts across the industry, which naturally exerts downward pressure on ROE and indicates that FirstHoldCo’s earnings power is scaling faster than its capital dilution.

The Revenue Engine: Optimized Asset Mix

FirstHoldCo’s outperformance is structurally rooted in its superior asset yield, particularly within its loan book. Unlike some peers who have historically relied on the “carry trade” of government securities, FirstHoldCo has aggressively pivoted toward private sector credit. In Q1 2026, the group generated ₦466 billion in interest income from loans and advances to customers, representing a 28% increase from the prior year.

This growth in customer loan income is significantly higher than that of its closest rivals. FirstHoldCo is finding higher-quality lending opportunities in a tight liquidity environment.

Operational Resilience

FirstHoldCo’s Cost-to-Income Ratio (CIR) improved remarkably from 53.8% in late 2025 to 45.2% in Q1 2026. While it still trails GTCO (the industry efficiency benchmark at 30.9%) and Zenith (43.5%), it has significantly outperformed Access Corp (55.8%) and UBA (61.2%).

The improvement in FirstHoldCo’s ratio is even more impressive when considering that its total operating expenses rose 21% year-on-year to ₦298 billion. The key to this outperformance is “positive operating leverage”—the group’s net earnings grew by 41%, effectively “outrunning” its expense growth.

Recovery and Credit Quality

The most profound turnaround in FirstHoldCo’s financial profile is found in its “Other Non-Interest Income,” specifically the “Recoveries” line item. In Q1 2025, the group reported a modest ₦1 billion in loan recoveries; by Q1 2026, this figure surged by 1570% to ₦19 billion.

This outperformance in debt recovery is a direct consequence of the 2025 balance sheet reset. Having aggressively written off legacy non-performing loans (NPLs), the bank’s specialized recovery units are now clawing back value from these assets, which flows directly to the bottom line as non-interest income.

Balance Sheet Dynamics: Liquidity and Funding

FirstHoldCo’s balance sheet reflects a bank that is both liquid and well-positioned for the “normalization” phase of the economy. Total assets stood at ₦26.8 trillion in March 2026, a slight 2% decline from December 2025, primarily due to the strategic balance sheet management.

FirstHoldCo Resets and Positions for Growth in 2026 and Beyond

By taking the painful but necessary steps to reset its balance sheet in 2025, FirstHoldCo Plc has entered 2026 as a leaner, more profitable, and more efficient competitor.

Its leadership in ROE and PBT growth is not an accident of the market but a direct result of management’s focus on high-yield customer lending and aggressive asset recovery, making it the industry’s most efficient engine for creating shareholder value.

As the benefits of the group recapitalization takes hold and the market digests its Q1 results, the current valuation gap between FirstHoldCo and other tier-one rivals like Zenith and GTCO is expected to narrow.

yinkus6750:
All the banks are busy taking money for themselves.
Yet interest rates keep going up.
Don't know why government won't regulate the banking industry towards getting a single unit interest rate.

2special:
So why are they not giving dividends

Bluntemperor:
A Good Observations 👍.
I ve said and written about the Need For Public Sector Inclusive Banking Industry, but this Govt and its chosen CBN Team,think Otherwise and their Logic has not been Convincing.
CBN keep Interest Rates as high as 27% By Lending to Banks and
the Banks in turn 🛞 Add their own 3-5% - as a Profit,
So,who will now Come to Borrow From the Banks - at 33% ❓
Which Business Do you want to Run with Such a High Interest Rates?
Those who are Patronizing the Banks In this High Interest Rates - are INSTITUTIONAL INVESTORS (From Abroad or have Representatives Locally In Nigeria)
NOT THE Public,
Not The Small and Medium Scale Companies
Nigerian Govt-and the CBN - Should Go To India - to learn how they Are Spreading Prosperity through the Banks to the Public 🥵

searchng4love:
I am wondering too but let's see

2special:
So why are they not giving dividends

Post its 2025 balance-sheet cleanup, FirstHoldco’s Q1 2026

Bluntemperor:
A Good Observations 👍.
I ve said and written about the Need For Public Sector Inclusive Banking Industry, but this Govt and its chosen CBN Team,think Otherwise and their Logic has not been Convincing.
CBN keep Interest Rates as high as 27% By Lending to Banks and
the Banks in turn 🛞 Add their own 3-5% - as a Profit,
So,who will now Come to Borrow From the Banks - at 33% ❓
Which Business Do you want to Run with Such a High Interest Rates?
Those who are Patronizing the Banks In this High Interest Rates - are INSTITUTIONAL INVESTORS (From Abroad or have Representatives Locally In Nigeria)
NOT THE Public,
Not The Small and Medium Scale Companies
Nigerian Govt-and the CBN - Should Go To India - to learn how they Are Spreading Prosperity through the Banks to the Public 🥵

ppogba:
Who are institutional investors?

How are they the ones patronizing the banks and not the public?

Go and learn more about institutional investors, what they invest in before coming to dip your leg into ocean bigger than you.

rodbel:
Lol!!! You’d be surprised how inaccurate your position is.
A significant number of local business owners access bank funding far more than is commonly assumed even down to microbusinesses you might ordinarily overlook.
Many Nigerian businesses that are not tapping into these opportunities need to understand that remaining informal comes at a cost. At the very least, registering as a Business Name with the CAC and operating a proper corporate bank account positions their business to access financing and other growth opportunities they are currently missing out on.

Bluntemperor:
A Good Observations 👍.
I ve said and written about the Need For Public Sector Inclusive Banking Industry, but this Govt and its chosen CBN Team,think Otherwise and their Logic has not been Convincing.
CBN keep Interest Rates as high as 27% By Lending to Banks and
the Banks in turn 🛞 Add their own 3-5% - as a Profit,
So,who will now Come to Borrow From the Banks - at 33% ❓
Which Business Do you want to Run with Such a High Interest Rates?
Those who are Patronizing the Banks In this High Interest Rates - are INSTITUTIONAL INVESTORS (From Abroad or have Representatives Locally In Nigeria)
NOT THE Public,
Not The Small and Medium Scale Companies
Nigerian Govt-and the CBN - Should Go To India - to learn how they Are Spreading Prosperity through the Banks to the Public 🥵

Bluntemperor:
Is this all you can contribute to the above discussions and I can say ,some of you just want to talk,for talking sake!
I have at Least:
4- Banks and my Turnover is over N10 -Million in one, FBN is one,
I have another Access over N20million in another as A Turnover,
And I have Corporate Accounts, and have been asking for A Loan of just 500k-1M and above,
But None Of this Nigerian Banks has been Forthcoming and you are here Speaking 🗣️ Trash or
Do you think you are talking to a baby just coming out of College or University?
• Nigerian People of Over 225 Million -Population,
-Are Not Receiving Enough Fundings To Support Their Businesses and I'm one of these Millions,but here Una de make Mouth 👄 On Social Media.
I really Pity this Generation!