- Legacy De-risking Pays Off for Nigerian Banking Giant
LAGOS, Nigeria — First HoldCo Plc has signaled a decisive end to its period of balance sheet restructuring, posting a massive 72.2% increase in pre-tax profits for the first quarter of 2026. The results suggest that the Nigerian financial powerhouse has successfully pivoted from a defensive posture to a high-growth trajectory.
For the three months ended March 31, the Group reported profit before tax of ₦321.1 billion, up from ₦186.5 billion in the same period last year. This surge was underpinned by a 26.8% rise in gross earnings, which reached ₦942.0 billion, driven largely by a sophisticated diversification of revenue streams.
The lender’s performance was bolstered by a triple-digit explosion in non-interest income, which skyrocketed 110.7% to ₦219.2 billion. This shift highlights the bank’s successful push into digital transformation and fee-based services, reducing its reliance on traditional lending in a volatile interest rate environment.
Efficiency gains were also evident, with the Group’s cost-to-income ratio sharpening to 45.2%, down from 52.3% the previous year.
This improved lean-running capability helped deliver a post-tax return on average equity of 31.6%, a significant leap that places the bank among the most profitable in the region.
Wale Oyedeji, the Group Managing Director, noted that the strong start to the year validates the bank’s long-term strategy:
“FirstHoldCo has begun 2026 on a strong footing, delivering a Q1 performance that validates the resilience of our franchise and the disciplined execution of our strategy. In a market defined by volatility, our results underscore that our business is not only enduring but strengthening—built to perform through cycles and to compound value for shareholders.”
The Q1 numbers reflect the fruit of what management described as “deliberate actions” taken in 2025 to address legacy non-performing loans (NPLs). Despite the NPL ratio ticking up slightly to 13.4%, the bank has aggressively pursued recoveries, particularly in the energy sector.
“With these legacy issues addressed decisively, we have strengthened the quality of our earnings and positioned the Group on a much stronger foundation for sustained growth,” Oyedeji added. “In Q1, 2026, approximately ₦19 billion recoveries were recorded, reinforcing our confidence in further recoveries over time.”
Commercial Banking: Remains the engine room of the Group, contributing ₦897.1 billion in gross earnings.
Investment Banking & Asset Management (IBAM): Showed steady top-line growth, with earnings rising 36.9% to ₦22.9 billion, even as it navigated a complex market for advisory services.
With customer loans and advances growing 5.3% to ₦9.4 trillion, First HoldCo appears ready to deploy its fortified balance sheet to capture emerging opportunities in Nigeria’s evolving financial landscape. For investors, the message is clear: the “Old Guard” of Nigerian banking has emerged leaner, cleaner, and significantly more profitable.
Wale Oyedeji, the Group Managing Director while commenting on the results stated that:
“FirstHoldCo has begun 2026 on a strong footing, delivering a Q1 performance that validates the resilience of our franchise and the disciplined execution of our strategy. In a market defined by volatility, our results underscore that our business is not only enduring but strengthening—built to perform through cycles and to compound value for shareholders.”
In the first quarter of 2026, gross earnings increased by 26.8% year-on-year to ₦942.0 billion, while profit before tax rose by 72.2% to ₦321.1 billion—among the strongest quarterly PBT outcomes in the Nigerian banking industry. This strong rebound follows the deliberate actions taken in 2025 to comprehensively de-risk our balance sheet, including adequately provisioning for systemic impaired and non-performing loans. With these legacy issues addressed decisively, we have strengthened the quality of our earnings and positioned the Group on a much stronger foundation for sustained growth.
Our Q1 results reflect our continued focus on enhancing revenue generation, improving operational efficiency, elevating governance standards, and applying rigorous risk management and capital allocation discipline. We are pleased by the sustained strength of our core banking franchise, the increased contribution from non-interest income streams, and meaningful progress in our digital transformation and financial inclusion programmes—collectively supporting a more resilient and diversified earnings profile.
“Beyond the headline numbers, we remain committed to preserving balance sheet strength, deepening prudent risk management, and upholding the highest standards of corporate governance. We also continue to demonstrate industry leadership in resolving legacy delinquent borrower exposures, with notable progress in asset recoveries, particularly from oil & gas obligors.
“In Q1, 2026, approximately ₦19 billion recoveries were recorded, reinforcing our confidence in further recoveries over time. These actions protect asset quality, sustain a strong capital position, and reinforce our capacity to fund growth responsibly across both banking and non-banking platforms.
“Looking ahead, this strong start to the year reinforces our confidence in the earnings power of the FirstHoldCo franchise and our ability to generate enduring value for all stakeholders. We will sustain momentum by continuing to grow quality earnings, capturing emerging opportunities in Nigeria’s evolving financial services landscape, and translating our scale, governance, and execution discipline into superior shareholder returns in 2026 and beyond.”
