FirstHoldCo profit surges 83.5% as turnaround bears fruit
Nigeria's FirstHoldCo posted an 83.5% jump in first-half profit to N653.5 billion, signaling to investors that its aggressive balance sheet cleanup has successfully transitioned the financial group into a phase of sustainable, capital-backed growth.
FirstHoldCo Plc recorded N653.5 billion in profit before tax for the six months ending June 30, 2026, an 83.5% increase from the prior year. Gross earnings grew 16.7% to N1.93 trillion, while operating income climbed 25.8% to N1.38 trillion. The figures mark a decisive shift for the Nigerian financial group following a prolonged period of restructuring.
The surge in profitability was driven by operational efficiency and a sharper focus on credit risk. FirstHoldCo reduced its cost-to-income ratio to 44.2% from 50.5% in H1 2025. Impairment charges fell 37.4% year-on-year, pushing pre-provision operating profit up 42.2%.
A critical milestone for investors is the early restoration of FirstBank’s Capital Adequacy Ratio, which reached 16.7% by the end of June. With a liquidity ratio of 52.2%, the core banking unit now possesses the regulatory headroom to safely expand its lending book and capture market share.
Revenue diversification is also taking hold. Non-interest income reached N497.1 billion, lifted by electronic banking and trade services. Separately, the group's Investment Banking and Asset Management divisions contributed N46.0 billion in gross earnings and N27.4 billion in profit before tax against an asset base of N572.3 billion.
Management continues to extract value from legacy loan books, recovering N91.9 billion in the first half. A net interest margin of 9.5% reflects disciplined loan pricing and an improved funding mix.
“The first half of 2026 marks an important turning point for FirstHoldCo,” said Group Chairman Femi Otedola. “These results affirm that the bold decisions the Board took to strengthen the institution were the right ones. We are witnessing the benefits of a stronger balance sheet and improved profitability.”
Group Managing Director Wale Oyedeji highlighted the operational drivers of the recovery. “We are particularly encouraged by the restoration of FirstBank’s capital adequacy ratio ahead of plan, the continued growth of our transaction-led businesses and the increasing contribution of our Investment Banking and Asset Management franchise.”
