FirstHoldCo Profit Surges 83.5% as Nigeria Lender Reaps Turnaround Rewards
Nigerian financial services group FirstHoldCo reported an 83.5% surge in first-half pretax profit, validating its balance sheet restructuring and positioning the firm for sustainable growth.
FirstHoldCo PLC reported an 83.5% increase in first-half pretax profit to N653.5 billion, driven by lower impairment charges and disciplined cost management. The Nigerian financial services group recorded gross earnings of N1.93 trillion for the six months ended June 30, 2026, representing a 16.7% year-on-year improvement.
Operating income grew 25.8% to N1.38 trillion, while pre-provision operating profit jumped 42.2%. These figures highlight the tangible benefits of the lender's aggressive balance sheet restructuring, signaling a definitive shift from a period of corporate recovery to sustainable, disciplined growth. "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."
A core driver of the earnings expansion was improved asset quality. Impairment charges fell by 37.4% compared to the prior year, supplemented by roughly N91.9 billion in recoveries from legacy exposures. Concurrently, the cost-to-income ratio improved significantly to 44.2%, down from 50.5% in the first half of 2025.
Capital and Liquidity Strengthened
FirstBank successfully restored its Capital Adequacy Ratio ahead of schedule. The flagship subsidiary's ratio reached 16.7% as of late June, supported by a robust liquidity ratio of 52.2%.
Group Managing Director Wale Oyedeji noted that the improved capitalization provides a foundation for future expansion. "Over the past year, we have worked deliberately to strengthen our balance sheet, restore capital, improve asset quality, and enhance operating efficiency," he stated. "The results show that those efforts are delivering meaningful outcomes and creating a stronger foundation for long-term growth."
Revenue Diversification
The group maintained a healthy net interest margin of 9.5% through optimized balance sheet management and lower funding costs. Simultaneously, non-interest income rose to N497.1 billion, fueled by electronic banking, trade services, and other transaction-led businesses.
Non-banking subsidiaries are steadily capturing a larger share of the earnings profile. The group's investment banking and asset management divisions generated N46.0 billion in gross earnings and N27.4 billion in pretax profit against an asset base of N572.3 billion. Management views this diversification as vital for insulating the firm against broader market volatility.
