By Josiah Nkemakolam
First HoldCo Plc posted a strong financial performance for the first half of 2026, reporting an 81.6 percent increase in profit after tax to N526.13 billion, driven by robust growth in non-interest income, improved asset quality, higher trading gains and disciplined cost management despite a moderation in interest income.
The financial services group, which released its unaudited results for the six months ended June 30, 2026, also recorded a profit before tax (PBT) of N653.54 billion, representing an 83.5 percent increase from N356.15 billion reported in the corresponding period of 2025.
Profit attributable to shareholders rose sharply to N522.66 billion, from N286.40 billion a year earlier, while earnings per share increased to N11.74, compared with N6.84 in the first half of 2025.
The impressive earnings underscore the group’s resilience in an operating environment still characterized by elevated interest rates, foreign exchange volatility and persistent inflationary pressures.
Interest income declines but margins remain resilient
A notable feature of the half-year result was the decline in interest income.
Interest income fell by about 2.7 percent to N1.40 trillion from N1.44 trillion in the corresponding period last year. Interest expense also declined marginally to N518.92 billion from N532.58 billion, helping the group maintain a healthy net interest income.
Consequently, net interest income stood at N879.13 billion, slightly below the N904.83 billion posted in the previous year.
Although net interest income moderated, the group benefited significantly from lower credit impairment charges.
Impairment losses declined to N116.14 billion, compared with N185.40 billion in the first half of 2025, representing a reduction of over 37 percent. This improved asset quality lifted net interest income after impairment to N762.99 billion, exceeding last year’s N719.43 billion.
The lower impairment charge suggests improving credit performance across the group’s loan portfolio despite the challenging macroeconomic environment.
Non-interest income powers earnings growth
The strongest driver of earnings during the period came from non-interest income.
Net fee and commission income climbed 28.7 percent to N178.51 billion, up from N138.70 billion, reflecting stronger transaction volumes and increased customer activity across banking operations.
The group also benefited from improved trading performance.
Net gains from financial instruments measured at fair value through profit or loss rose dramatically to N65.79 billion, reversing a N53.67 billion loss recorded during the same period last year.
Similarly, gains from the sale of investment securities surged to N60.62 billion, compared with N7.45 billion in the corresponding period of 2025.
Although foreign exchange gains moderated to N44.15 billion from N73.54 billion, they remained a positive contributor to earnings.
Dividend income also edged higher to N11.33 billion, while other operating income recorded a spectacular increase to N136.67 billion, compared with just N13.15 billion in the prior year.
Collectively, these income streams more than compensated for the modest decline in net interest income.
Costs remain under control
Despite inflationary pressures and rising operating costs across the Nigerian economy, First HoldCo maintained reasonable expense discipline.
Personnel expenses increased modestly to N180.26 billion, from N170.94 billion, reflecting higher staff costs and inflation-related adjustments.
Depreciation, amortisation and impairment expenses also rose to N43.28 billion, compared with N35.46 billion.
Other operating expenses climbed to N384.55 billion from N346.43 billion, representing an increase of about 11 percent.
Nevertheless, the strong growth in income more than offset higher operating expenses, resulting in operating profit rising by over 83 percent to N651.98 billion, compared with N355.98 billion recorded a year earlier.
After accounting for a N1.56 billion share of profit from associates and tax expense of N127.28 billion, the group closed the half-year with its impressive after-tax profit of N526.13 billion.
Balance sheet expands above N30 trillion
The group’s financial position remained strong, with total assets expanding by approximately 12.5 percent to N30.65 trillion, from N27.25 trillion at the end of December 2025.
Growth was driven primarily by increases in investment securities, loans and financial assets.
Investment securities expanded significantly to N9.23 trillion, compared with N6.97 trillion at year-end 2025.
Loans and advances to customers increased to N9.51 trillion, from N8.97 trillion, demonstrating continued lending activity.
Financial assets measured at fair value through profit or loss nearly doubled to N2.21 trillion, from N1.14 trillion.
Cash balances with the Central Bank remained relatively stable at N5.07 trillion.
On the liabilities side, customer deposits rose strongly to N21.93 trillion, from N18.88 trillion, representing growth of more than 16 percent.
Deposits from banks also increased to N2.87 trillion, compared with N2.02 trillion recorded at the end of last year.
Borrowings, however, declined sharply to N964.83 billion, from N1.94 trillion, indicating continued deleveraging by the group.
Total shareholders’ equity strengthened to N3.63 trillion, up from N3.30 trillion, supported mainly by increased retained earnings.
Retained earnings more than doubled to N921.72 billion, compared with N401.80 billion as of December 2025.
Comprehensive income affected by market valuation losses
Despite the impressive earnings performance, total comprehensive income was moderated by unrealised valuation losses.
The group reported a total other comprehensive loss of N244.76 billion, mainly arising from declines in the fair value of debt securities classified at fair value through other comprehensive income and foreign currency translation losses.
Consequently, total comprehensive income stood at N281.37 billion, compared with N24.82 billion reported during the corresponding period last year.
Cash flow turns positive
First HoldCo also recorded a remarkable turnaround in cash generation.
Net cash generated from operating activities amounted to N502.01 billion, a significant improvement from the N1.01 trillion net cash outflow reported in the first half of 2025.
The improvement reflected stronger operational cash generation and significantly lower cash absorbed by working capital.
The group invested heavily during the period, recording a net investing cash outflow of N869.28 billion, largely driven by purchases of investment securities.
Financing activities resulted in a net cash outflow of N305.81 billion, reflecting repayment of borrowings that exceeded proceeds from new loans and fresh equity issuance.
Overall, cash and cash equivalents declined by N673.08 billion during the period to close at N3.60 trillion after accounting for exchange rate movements.
Holding company posts stronger standalone earnings
The holding company’s standalone financial statements also showed notable improvement.
Profit after tax rose almost fourfold to N33.05 billion, from N8.55 billion in the first half of 2025.
Profit before tax climbed to N41.27 billion, compared with N8.60 billion in the previous year.
The holding company’s earnings were supported by N36.90 billion in other operating income and N4.32 billion in dividend income from subsidiaries.
Standalone total assets increased to N642.79 billion, compared with N560.02 billion at year-end 2025, while shareholders’ equity strengthened to N623.30 billion.
The first-half performance reinforces First HoldCo’s position as one of Nigeria’s strongest financial institutions, with diversified income streams cushioning the impact of moderating interest income. Improved asset quality, rising fee income, strong trading gains and disciplined balance sheet management enabled the group to deliver exceptional earnings growth.
Going into the second half of the year, investors will be watching whether the group can sustain its momentum amid evolving monetary policies, exchange rate dynamics and regulatory changes. If current trends in asset quality, deposit mobilisation and non-interest revenue continue, First HoldCo appears well positioned to deliver another year of record profitability.