FirstHoldCo Profit Rockets 72.2% in Q1
FirstHoldCo Reports 72.2% Profit Surge in Q1 2026
FirstHoldCo Plc has announced a remarkable financial turnaround in its first quarter of 2026, achieving a 72.2% year-on-year increase in profit before tax. The profit surged to ₦321.12 billion, up from ₦186.48 billion in the same period last year. This impressive growth is attributed to consistent interest earnings and strong fee income generation.
The quarter marks a significant recovery for FirstHoldCo, the parent company of Nigeria’s oldest commercial bank, following extensive restructuring and a clean-up of its balance sheet in late 2025. This restructuring involved substantial write-offs of legacy debts, allowing the company to position itself effectively in the competitive banking sector.
FirstHoldCo has emerged as the second-largest lender in Nigeria by profit before tax, trailing only Zenith Bank. In its latest financial report, Zenith Bank recorded ₦360.91 billion in profit before tax, while other major banks such as GTCO, Access Holdings, and UBA reported ₦302.89 billion, ₦272.2 billion, and ₦160.65 billion, respectively.
The resurgence of FirstHoldCo is not solely reliant on the current high-interest rate climate, set by the Central Bank of Nigeria at 26.5%, but is also the result of a strategic focus on addressing historical asset quality issues. The group undertook an impairment charge of ₦826.3 billion in 2025 to tackle these concerns.
FirstHoldCo’s Return on Equity (ROE) for Q1 2026 stands at 31.6%, a significant increase from 4.6% in December 2025. This metric highlights the company’s capacity to generate returns for its shareholders amidst industry-wide recapitalization efforts.
The bank’s strategy diverges from peers that have historically leaned on government securities, opting instead to increase private sector lending. In Q1 2026, FirstHoldCo generated ₦465.6 billion in interest income from loans, marking a 27.8% increase from the previous year.
Operationally, FirstHoldCo improved its Cost-to-Income Ratio from 53.8% at the end of 2025 to 45.2% in Q1 2026. Though it continues to lag behind competitors such as GTCO and Zenith, the bank has outperformed institutions such as Access Corp and UBA. Notably, FirstHoldCo’s operating expenses increased by 21.3% year-on-year, yet net earnings grew by 40.2%.
The group’s recovery efforts are evident in its “Other Non-Interest Income,” where loan recoveries surged from ₦1 billion in Q1 2025 to ₦19 billion in Q1 2026. This dramatic increase is a direct result of the prior year’s write-offs, enabling the bank to recover value from previously non-performing loans.
FirstHoldCo’s total assets as of March 2026 were ₦26.8 trillion, reflecting a modest 1.4% decline from December 2025, largely due to strategic balance sheet management.
By taking decisive actions in 2025, FirstHoldCo has entered 2026 as a more efficient and profitable entity in the banking sector. The bank’s strong performance measures indicate a focus on high-yield lending and effective asset recovery strategies, establishing it as a leader in shareholder value creation.
As the market absorbs these results, the valuation difference between FirstHoldCo and its tier-one competitors, including Zenith and GTCO, is anticipated to diminish.
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