The Group Managing Director, Wale Oyedeji,
First HoldCo Plc has delivered a strong start to the 2026 financial year, reporting significant growth in revenue and profitability for the first quarter ended March 31, 2026, driven by improved core banking performance, rising non-interest income, and enhanced operational efficiency.
The Group posted gross earnings of ₦942.0 billion, representing a 26.8% increase year-on-year from ₦742.7 billion in the same period of 2025. Profitability also recorded a sharp upswing, with profit before tax rising 72.2% to ₦321.1 billion, marking one of the strongest quarterly performances in the Nigerian banking industry this year.
Profit after tax rose 56.5% to ₦267.8 billion, reflecting improved earnings quality and a more diversified revenue base across business segments.
Revenue Growth Driven by Interest Income and Non-Interest Expansion
The Group’s performance was anchored by steady growth in interest income, which rose to ₦704.5 billion, up 12.7% year-on-year. Net interest income increased by 20.1% to ₦438.8 billion, supported by improved asset yields and efficient funding management.
A key highlight of the quarter was the remarkable expansion in non-interest income, which surged 110.7% to ₦219.2 billion, reflecting higher fee-based income, digital banking growth, and trading-related gains.
Operating income rose sharply by 40.2% to ₦658.0 billion, underscoring the strength of the Group’s diversified revenue streams and sustained execution of its strategic priorities.
Cost Discipline and Operational Efficiency Strengthen Margins
Despite inflationary and operating pressures, First HoldCo maintained strong cost discipline. Operating expenses increased by 21.3% to ₦297.6 billion, but efficiency gains helped improve the cost-to-income ratio to 45.2%, compared to 52.3% in FY 2025.
Impairment charges rose modestly to ₦40.4 billion, reflecting continued prudence in risk provisioning following earlier balance sheet clean-up actions.
Balance Sheet Remains Strong Amid Strategic Adjustments
The Group’s total assets stood at ₦26.88 trillion, a slight decline of 1.4% from FY 2025, reflecting portfolio optimisation efforts.
Customer loans and advances increased by 5.3% to ₦9.44 trillion, signalling continued support for productive sectors of the economy. However, customer deposits declined slightly by 2.7% to ₦18.38 trillion, reflecting balance sheet repositioning and funding mix adjustments.
Key performance indicators showed notable improvement in profitability:
Return on average equity: 31.6%
Return on average assets: 4.0%
Net interest margin: 10.1%
However, asset quality indicators showed mild pressure, with non-performing loans rising to 13.4%, although coverage remained strong at 89.4%, indicating adequate provisioning buffers.
Management: “We Are Building a Stronger, More Resilient Franchise”
Commenting on the results, the Group Managing Director, Wale Oyedeji, said the performance reflects the resilience of the Group’s franchise and the effectiveness of its long-term strategy.
He noted that the strong Q1 outcome validates actions taken in 2025 to de-risk the balance sheet, particularly through proactive provisioning for impaired and non-performing loans.
According to him, those interventions have strengthened the quality of earnings and positioned the Group for sustainable growth.
“We have begun 2026 on a strong footing, delivering a performance that underscores the resilience of our franchise and disciplined execution of strategy,” he said.
He added that the Group remains focused on:
Strengthening governance and risk management frameworks
Expanding digital and financial inclusion initiatives
Deepening non-interest income streams
Enhancing capital allocation discipline
₦19bn Recoveries Boost Confidence in Asset Quality
During the quarter, First HoldCo recorded approximately ₦19 billion in recoveries, largely from legacy exposures in the oil and gas sector.
Management reaffirmed its commitment to continued recovery efforts, stating that ongoing resolution of delinquent exposures will further strengthen asset quality and capital stability.
Segment Performance: Commercial Banking Leads Growth
Commercial Banking
The commercial banking arm remained the Group’s core earnings engine, delivering:
Gross earnings: ₦897.1 billion (+23.8%)
Profit before tax: ₦285.8 billion (+71.0%)
Profit after tax: ₦236.7 billion (+56.7%)
Loans: ₦9.4 trillion (+5.3%)
Deposits: ₦18.4 trillion (-2.6%)
Growth was driven by strong lending activity, improved fee income, and digital banking expansion.
Investment Banking & Asset Management
The investment banking and asset management segment posted:
Gross earnings: ₦22.9 billion (+36.9%)
Profit before tax: ₦14.8 billion (-7.3%)
Assets: ₦548.9 billion (+2.5%)
While revenue growth remained strong, profitability was slightly impacted by market volatility and higher operating costs.
Outlook: Sustaining Momentum in a Dynamic Market
Looking ahead, First HoldCo expressed confidence in sustaining its growth trajectory through 2026, supported by diversified income streams, stronger digital capabilities, and disciplined risk management.
The Group reiterated its commitment to delivering long-term shareholder value while maintaining balance sheet strength and regulatory compliance across its operations.
First HoldCo Plc reports strong Q1 2026 results with ₦942bn gross earnings and ₦321.1bn profit before tax, driven by rising interest income, non-interest revenue growth, and improved efficiency.
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