First HoldCo Tops Nigerian Banking Valuations After Earnings Rally
First HoldCo Plc has overtaken Zenith Bank to become Nigeria's most capitalized bank, a turnaround driven by record first-half earnings that validate its controversial 2025 balance sheet cleanup.
First HoldCo Plc closed at N105.50 on Monday, gaining 10% to reach a market capitalization of N4.80 trillion and narrowly edge out Zenith Bank at N4.79 trillion. Guaranty Trust Holding Company followed closely at N4.71 trillion. The shift marks the strongest stock re-rating on the Nigerian Exchange this year.
Earnings validate reset strategy
The share price rally was triggered by record half-year 2026 results that confirmed a major strategic pivot. Pre-tax profit surged 83.5% year-on-year to N653.54 billion in the first six months of 2026, up from N356.15 billion in the same period of 2025. Second-quarter pre-tax profit alone reached N332.42 billion, a 95.92% increase over the prior year.
Just months ago, market sentiment around the lender was fragile following weak full-year 2025 earnings. The group reported a 2025 pre-tax profit of only N147.2 billion after absorbing an N826 billion impairment charge. Management maintained this was a deliberate balance sheet reset to meet regulatory expectations rather than a reflection of underlying business deterioration. The 2026 earnings figures appear to have validated that strategy for investors.
Otedola builds stake
Investor confidence has been further reinforced by the steady accumulation of shares by billionaire Femi Otedola. His combined stake increased to 20.40% by June 30, 2026, up from 18.12% at the end of March and 15.95% a year earlier. He added roughly 1.22 billion shares in the second quarter, bringing his total holdings to 9.28 billion shares, driven almost entirely by an increase in indirect holdings.
Management attributed the earnings growth to stronger operating efficiency, improved asset quality, and expansion in transaction banking and non-interest income. However, sustaining the top valuation spot could prove challenging. The top three banks are separated by less than N100 billion in market value. Furthermore, the broader sector is navigating an ongoing recapitalization exercise that demands higher capital thresholds from all lenders.
First HoldCo's ability to maintain its new lead will depend on continuing its earnings trajectory and proving its balance sheet can withstand the industry-wide push for stronger capital buffers.
