First HoldCo Plc has reported a sharp increase in profitability for the first quarter of 2026.
Financial Highlights for Q1 2026
| Income statement (₦’billion) | 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) | 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 | 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% |
Recall, the Holding Company recorded a steep decline in earnings in its 2025 full-year results triggered by heavy impairment charges linked to delinquent loans in the oil and gas sector.
The bank reported a profit before tax of N321.1 billion in the first quarter ended March 31, 2026, representing a 72.2 per cent increase from N186.5 billion recorded in the corresponding period of 2025. Profit after tax rose by 56.5 per cent to N267.8 billion, while gross earnings climbed by 26.8 per cent to N942 billion.
The strong quarterly performance comes months after the group’s 2025 audited results showed a significant erosion in profitability despite growth in core earnings. Profit before tax for the 2025 financial year fell by 70.5 per cent to N235 billion from N796.5 billion in 2024, while profit after tax declined by 79.4 per cent to N139.5 billion.
The decline was largely driven by a 93.8 per cent increase in impairment charges, which rose to N826.3 billion in 2025 from N426.3 billion in the previous year, alongside the moderation of foreign exchange gains recorded in earlier periods.
Despite the pressure on bottom-line performance, the group maintained strong revenue growth during the year. Gross earnings rose by 6.9 per cent to N3.4 trillion, supported by a 24.9 per cent increase in interest income to N2.99 trillion and a 36.8 per cent growth in net interest income to N1.92 trillion.
However, non-interest income fell sharply by 50 per cent to N377.4 billion, while operating expenses increased by 32.1 per cent to N1.23 trillion amid inflationary pressures, rising personnel costs and higher regulatory and administrative expenses. The bank’s cost-to-income ratio worsened to 53.8 per cent from 43.3 per cent in 2024.
Asset quality also weakened during the year as the non-performing loan ratio rose to 12 per cent from 10.2 per cent in 2024, reflecting stress exposures in the oil and gas sector.
Nonetheless, the group significantly improved its non-performing loans (NPL) coverage ratio to 98.7 per cent from 54.8 per cent, indicating stronger provisioning against troubled assets.
In the first quarter of 2026, the bank sustained the clean-up exercise while returning to stronger profitability. Impairment charges rose marginally by 8.3 per cent to N40.4 billion, while non-interest income more than doubled to N219.2 billion, helping operating income rise by 40.2 per cent to N658 billion.
The bank’s loan book expanded by 5.3 per cent to N9.44 trillion in Q1 2026, although customer deposits declined by 2.7 per cent to N18.38 trillion from the 2025 year-end position. Total assets also slipped slightly by 1.4 per cent to N26.88 trillion.
Non-performing loans rose further to 13.4 per cent in Q1 2026, while NPL coverage moderated to 89.4 per cent from 98.7 per cent at the end of 2025.
Commenting on the results, Wale Oyedeji, group managing director, said the bank’s first-quarter performance reflected the resilience of its franchise and the benefits of measures taken in 2025 to de-risk the balance sheet.
He said the group had made notable progress in recoveries from delinquent borrowers, especially in the oil and gas segment, disclosing that about N19 billion was recovered in the first quarter of 2026.
According to him, the group remains focused on strengthening earnings quality, improving operational efficiency, enhancing governance standards and sustaining prudent risk management.
FirstHoldCo also said it continued to strengthen its capital base in line with the Central Bank of Nigeria’s new minimum capital requirements for banks. The group disclosed that it had raised N128.7 billion so far under its N350 billion capital raising programme aimed at meeting the N500 billion regulatory threshold for FirstBank.
The commercial banking segment remained the major contributor to earnings, generating N897.1 billion in gross earnings in Q1 2026, up 23.8 per cent year-on-year, while profit before tax rose by 71 per cent to N285.8 billion.
Meanwhile, its Investment Banking and Asset Management business recorded a 36.9 per cent increase in gross earnings to N22.9 billion, although profit before tax declined by 7.3 per cent to N14.8 billion.
Business Groups:
Commercial Banking
- Gross earnings of ₦1 billion up 23.8% y-o-y (Mar 2025: ₦724.5 billion)
- Net interest income of ₦3 billion, up 21.3% y-o-y (Mar 2025: ₦356.5 billion)
- Non-interest income of ₦2 billion, up 93.8% y-o-y (Mar 2025: ₦97.1 billion)
- Operating expenses of ₦7 billion, up 21.2% y-o-y (Mar 2025: ₦241.4 billion)
- Profit before tax of ₦8 billion, up 71.0% y-o-y (Mar 2025: ₦167.2 billion)
- Profit after tax of ₦7 billion, up 56.7% y-o-y (Mar 2025: ₦151.0 billion)
- Total assets of ₦1 trillion, down 2.0% y-t-d (Dec 2025: ₦26.7 trillion)
- Customers’ loans and advances (net) of ₦4 trillion, up 5.3% y-t-d (Dec 2025: ₦9.0 trillion)
- Customers’ deposits of ₦4 trillion, down 2.6% y-t-d (Dec 2025: ₦18.9 trillion)
Investment Banking & Asset Management (IBAM)
- Gross earnings of ₦22.9 billion, up 36.9% y-o-y (Mar 2025: ₦16.8 billion)
- Profit before tax of ₦14.8 billion, down -7.3% y-o-y (Mar 2025: ₦16.0 billion)
- Total assets of ₦548.9 billion, up 2.5% y-t-d (Dec 2025: ₦535.3 billion)
