By Josiah Nkemakolam
First HoldCo Plc has reported a strong start to 2026, posting a 72.2 per cent rise in profit before tax to ₦321.1 billion for the first quarter ended March 31, 2026, as the financial services group benefited from stronger non-interest income, improved operating efficiency and recoveries from delinquent loans.
Gross earnings rose by 26.8 per cent year-on-year to ₦942 billion from ₦742.7 billion in the corresponding period of 2025, reinforcing the group’s position among Nigeria’s top-performing banking institutions.
The group’s unaudited financial statement showed that profit after tax climbed by 56.5 per cent to ₦267.8 billion, while operating income increased by 40.2 per cent to ₦658 billion. Interest income rose by 12.7 per cent to ₦704.5 billion, while net interest income advanced by 20.1 per cent to ₦438.8 billion. Non-interest income more than doubled, rising by 110.7 per cent to ₦219.2 billion from ₦104 billion recorded a year earlier.
Despite a challenging operating environment, the group recorded improvements in key efficiency indicators. Cost-to-income ratio improved to 45.2 per cent from 52.3 per cent, while cost of funds moderated slightly to 4.7 per cent from 4.8 per cent. Customer loans and advances increased by 5.3 per cent to ₦9.44 trillion, although customer deposits declined marginally by 2.7 per cent to ₦18.38 trillion during the period under review.
Commenting on the performance, Group Managing Director, Wale Oyedeji, said the results demonstrated the resilience of the institution and the effectiveness of its restructuring efforts undertaken in 2025.
“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,” he said.
Oyedeji added that the group’s strong earnings growth followed deliberate actions taken last year to clean up its balance sheet and strengthen asset quality.
“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,” he stated.
The commercial banking business remained the major earnings driver, posting gross earnings of ₦897.1 billion, representing a 23.8 per cent increase over the ₦724.5 billion recorded in the same period of 2025.
Profit before tax from the segment rose sharply by 71 per cent to ₦285.8 billion, while profit after tax increased by 56.7 per cent to ₦236.7 billion.
The lender also recorded significant progress in loan recoveries, particularly from obligors in the oil and gas sector. According to the group, approximately ₦19 billion was recovered in the first quarter of 2026, a development management said reinforced confidence in further recoveries and improved asset quality over time.
However, asset quality pressures persisted as the non-performing loan ratio rose to 13.4 per cent from 12 per cent at the end of the 2025 financial year, while NPL coverage declined to 89.4 per cent from 98.7 per cent.
Total assets stood at ₦26.88 trillion, slightly lower than the ₦27.25 trillion reported at the close of the 2025 financial year.
In the investment banking and asset management business, gross earnings rose by 36.9 per cent to ₦22.9 billion, although profit before tax declined by 7.3 per cent to ₦14.8 billion. Management said the group would continue to focus on revenue diversification, digital transformation, prudent risk management and stronger governance standards as it seeks to sustain profitability and deliver improved shareholder returns through the 2026 financial year and beyond.