First HoldCo Plc has announced a strong unaudited performance for the first quarter ended March 31, 2026, with significant growth across earnings, profitability and core banking operations, reinforcing what the group described as the resilience of its franchise amid a volatile operating environment.
The financial services group reported gross earnings of ₦942.0 billion in Q1 2026, representing a 26.8 per cent increase from ₦742.7 billion recorded in the corresponding period of 2025. Profit before tax surged by 72.2 per cent to ₦321.1 billion from ₦186.5 billion, while profit after tax rose by 56.5 per cent to ₦267.8 billion from ₦171.1 billion.
Interest income increased by 12.7 per cent year-on-year to ₦704.5 billion from ₦625.3 billion, while net interest income grew by 20.1 per cent to ₦438.8 billion compared with ₦365.2 billion in Q1 2025.
A major driver of the group’s performance was the sharp increase in non-interest income, which jumped by 110.7 per cent to ₦219.2 billion from ₦104.0 billion recorded a year earlier. Consequently, operating income expanded by 40.2 per cent to ₦658.0 billion from ₦469.2 billion.
Despite rising inflationary pressures and higher operating costs across the banking industry, operating expenses grew at a slower pace of 21.3 per cent to ₦297.6 billion, compared with ₦245.3 billion in Q1 2025, while impairment charges for losses rose marginally by 8.3 per cent to ₦40.4 billion from ₦37.3 billion.
On the balance sheet, total assets closed the quarter at ₦26.88 trillion, representing a marginal 1.4 per cent decline from ₦27.25 trillion at the end of the 2025 financial year. Net customer loans and advances increased by 5.3 per cent to ₦9.44 trillion from ₦8.97 trillion, reflecting continued lending growth, while customer deposits declined slightly by 2.7 per cent to ₦18.38 trillion from ₦18.88 trillion.
The group also reported stronger returns metrics, with post-tax return on average equity rising to 31.6 per cent from 4.6 per cent in 2025, while post-tax return on average assets improved to 4.0 per cent from 0.5 per cent.
Net interest margin stood at 10.1 per cent against 11.1 per cent in 2025, while earnings yield moderated to 16.3 per cent from 17.3 per cent. Cost of funds improved slightly to 4.7 per cent from 4.8 per cent, and the cost-to-income ratio declined significantly to 45.2 per cent from 52.3 per cent.
Asset quality indicators showed mixed performance, as the non-performing loan ratio rose to 13.4 per cent from 12.0 per cent, while NPL coverage moderated to 89.4 per cent from 98.7 per cent.
Financial Highlights — Income Statement (₦’billion)
| Metric | Q1 2026 | Q1 2025 | Δ |
|---|---|---|---|
| Gross earnings | 942.0 | 742.7 | +26.8% |
| Interest income | 704.5 | 625.3 | +12.7% |
| Net Interest Income | 438.8 | 365.2 | +20.1% |
| Non-Interest Income¹ | 219.2 | 104.0 | +110.7% |
| Operating income² | 658.0 | 469.2 | +40.2% |
| Impairment charges for losses | 40.4 | 37.3 | +8.3% |
| Operating expenses | 297.6 | 245.3 | +21.3% |
| Profit before tax | 321.1 | 186.5 | +72.2% |
| Profit for the year³ | 267.8 | 171.1 | +56.5% |
Statement of Financial Position (₦’billion)
| Metric | Q1 2026 | FY 2025 | Δ |
|---|---|---|---|
| Total Assets | 26,878.9 | 27,250.9 | -1.4% |
| Customer loans & advances (Net) | 9,438.9 | 8,966.3 | +5.3% |
| Customer deposits | 18,380.4 | 18,883.0 | -2.7% |
Key Metrics
| Metric | Q1 2026 | FY 2025 |
|---|---|---|
| Post-tax return on average equity⁴ | 31.6% | 4.6% |
| Post-tax return on average assets⁵ | 4.0% | 0.5% |
| Net Interest Margin⁶ | 10.1% | 11.1% |
| Earnings yield⁷ | 16.3% | 17.3% |
| Cost of funds⁸ | 4.7% | 4.8% |
| Cost to income⁹ | 45.2% | 52.3%¹¹ |
| Non-Performing Loan (NPL) Ratio | 13.4% | 12.0% |
| NPL Coverage¹⁰ | 89.4% | 98.7% |
Commenting on the performance, the Group Managing Director of FirstHoldCo, Wale Oyedeji, said:
“FirstHoldCo has begun 2026 on a strong footing, delivering a Q1 performance that validates the resilience of our franchise and the disciplined execution of our strategy. In a market defined by volatility, our results underscore that our business is not only enduring but strengthening—built to perform through cycles and to compound value for shareholders.”
Oyedeji noted that the first-quarter performance reflected the benefits of strategic balance sheet restructuring undertaken in 2025.
“In the first quarter of 2026, gross earnings increased by 26.8% year-on-year to ₦942.0 billion, while profit before tax rose by 72.2% to ₦321.1 billion—among the strongest quarterly PBT outcomes in the Nigerian banking industry. This strong rebound follows the deliberate actions taken in 2025 to comprehensively de-risk our balance sheet, including adequately provisioning for systemic impaired and non-performing loans. With these legacy issues addressed decisively, we have strengthened the quality of our earnings and positioned the Group on a much stronger foundation for sustained growth.”
He added that the group’s performance was supported by stronger revenue generation, operational efficiency, governance improvements and disciplined risk management.
“Our Q1 results reflect our continued focus on enhancing revenue generation, improving operational efficiency, elevating governance standards, and applying rigorous risk management and capital allocation discipline. We are pleased by the sustained strength of our core banking franchise, the increased contribution from non-interest income streams, and meaningful progress in our digital transformation and financial inclusion programmes—collectively supporting a more resilient and diversified earnings profile.”
The GMD also highlighted progress in recoveries from delinquent exposures, particularly within the oil and gas sector.
“Beyond the headline numbers, we remain committed to preserving balance sheet strength, deepening prudent risk management, and upholding the highest standards of corporate governance. We also continue to demonstrate industry leadership in resolving legacy delinquent borrower exposures, with notable progress in asset recoveries, particularly from oil & gas obligors. In Q1, 2026, approximately ₦19 billion recoveries were recorded, reinforcing our confidence in further recoveries over time.”
According to him, these recovery efforts were helping to protect asset quality, sustain capital strength and support responsible growth across both banking and non-banking businesses.
Looking ahead, Oyedeji expressed confidence in the group’s outlook for the rest of the year.
“Looking ahead, this strong start to the year reinforces our confidence in the earnings power of the FirstHoldCo franchise and our ability to generate enduring value for all stakeholders. We will sustain momentum by continuing to grow quality earnings, capturing emerging opportunities in Nigeria’s evolving financial services landscape, and translating our scale, governance, and execution discipline into superior shareholder returns in 2026 and beyond.”
An analysis of the group’s operating segments showed that the Commercial Banking business remained the primary contributor to earnings.
The division posted gross earnings of ₦897.1 billion, representing a 23.8 per cent increase from ₦724.5 billion in March 2025. Net interest income rose by 21.3 per cent to ₦432.3 billion from ₦356.5 billion, while non-interest income climbed 93.8 per cent to ₦188.2 billion from ₦97.1 billion.
Operating expenses in the Commercial Banking business increased by 21.2 per cent to ₦292.7 billion from ₦241.4 billion, while profit before tax rose sharply by 71.0 per cent to ₦285.8 billion from ₦167.2 billion. Profit after tax also grew by 56.7 per cent to ₦236.7 billion from ₦151.0 billion.
The division’s total assets stood at ₦26.1 trillion, down 2.0 per cent year-to-date from ₦26.7 trillion at the end of 2025. Net customer loans and advances increased by 5.3 per cent to ₦9.4 trillion from ₦9.0 trillion, while customer deposits declined marginally by 2.6 per cent to ₦18.4 trillion from ₦18.9 trillion.
Within the Investment Banking and Asset Management segment, gross earnings rose by 36.9 per cent to ₦22.9 billion from ₦16.8 billion in Q1 2025. However, profit before tax declined by 7.3 per cent to ₦14.8 billion from ₦16.0 billion, while total assets increased by 2.5 per cent year-to-date to ₦548.9 billion from ₦535.3 billion at the end of 2025.