FirstBank Fortifies Capital, Sustains Earnings Ahead of Regulatory Deadline

 First Bank of Nigeria Limited has reinforced its position in the country’s financial system after successfully meeting the Central Bank of Nigeria’s (CBN) ₦500 billion minimum capital requirement ahead of the March 31, 2026 recapitalisation deadline—an achievement seen by analysts as a strong signal of balance-sheet resilience and long-term growth readiness.

The milestone was delivered through a combination of rights issue, private placement, and proceeds from the divestment of the Group’s merchant banking subsidiary, reflecting strong investor confidence in the lender’s business model and future prospects.

Industry observers note that early compliance places FirstBank among the leading institutions strengthening capital buffers as regulators push banks to enhance stability, expand lending capacity, and better support economic growth.

Performance Signals Mixed but Strategic Strengthening Underway

Financial disclosures show the bank’s core earnings momentum remained visible despite macroeconomic pressures.
For the first half of 2025, gross earnings rose about 18 percent year-on-year to roughly ₦1.6–₦1.7 trillion, driven largely by strong growth in interest income and net interest income.

However, profitability moderated as impairment charges and operating expenses increased, leading to declines in profit before tax and profit after tax for the period.

Full-year 2025 results also reflected this clean-up strategy, with significant impairment provisions contributing to a sharp fall in pre-tax profit, even as interest income, assets, and customer deposits continued to expand.

Analysts interpret the elevated provisioning as a deliberate balance-sheet strengthening measure designed to position the bank for the post-recapitalisation competitive environment.

Experts Weigh In on Capital Adequacy and Sector Outlook

Economist Celestine Ukpong described FirstBank’s early recapitalisation compliance as “a stabilising development for Nigeria’s banking ecosystem,” noting that stronger capital buffers enhance lenders’ ability to absorb shocks, support credit growth, and rebuild investor confidence during periods of economic adjustment.

According to Ukpong, the bank’s willingness to take heavy impairment charges suggests a forward-looking restructuring strategy rather than operational weakness, adding that recapitalised banks are more likely to finance infrastructure, SMEs, and real-sector expansion once macroeconomic conditions improve.

Financial analyst and chartered accountant Peter Adebayo, FCA, offered a complementary view, stating that FirstBank’s earnings trajectory—rising interest income alongside moderated profits—reflects industry-wide transition dynamics driven by regulatory tightening, foreign-exchange normalisation, and risk-asset revaluation.

He argued that meeting the ₦500 billion threshold ahead of deadline gives the bank strategic headroom to pursue digital transformation, expand lending, and compete effectively in a consolidation-prone banking landscape.

Positioning for the Post-Recapitalisation Era
With recapitalisation secured, FirstBank is expected to intensify focus on technology-driven innovation, financial inclusion, and sustainable earnings growth, leveraging its fortified capital base to scale support for the real sector and deepen customer engagement.

Sector-wide, regulators report growing compliance among Nigerian banks racing toward the March 2026 deadline—an indication of system-level strengthening aimed at long-term financial stability.

For FirstBank, analysts say the combination of capital adequacy, disciplined provisioning, and steady earnings capacity may ultimately define its competitive advantage in Nigeria’s next banking cycle.

First Bank of Nigeria meets the CBN’s ₦500 billion capital requirement ahead of the 2026 deadline, with analysts highlighting earnings resilience, balance-sheet strengthening, and post-recapitalisation growth prospects.