Financial Highlights for Q1 2026

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)

But what about businesses that have lasted twice that long? Or a financial services group that has thrived for over 130 years, especially in Africa, where business survival rates are likely lower than those statistics from the Global North? Such a group has certainly earned the right to teach masterclasses on business longevity.

First HoldCo Plc (FirstHoldCo), recently rebranded from FBN Holdings Plc, exemplifies sustainable business practices.

A well-diversified group, it is one of Africa’s largest financial services organisations, offering innovative financial solutions through its subsidiaries in commercial banking, asset management, capital markets, securities, trusteeship, and insurance brokerage.

FirstHoldCo ensures strategic coordination and synergy among its subsidiaries to deliver long-term value for stakeholders.

Retaining the legacy strengths and experience of FBN Holdings Plc, FirstHoldCo ensures that its subsidiaries enhance positive environmental, social, and governance (ESG) impacts while minimising or eliminating negative ones.

This includes managing ESG risks in the workplace, marketplace, community, and environment, with the institutional capability to turn risks into opportunities.

For example, ESG risk management enhances credit and investment decision-making, de-risking processes for subsidiaries such as FirstBank and FBNQuest. It also strengthens social relationships with the communities in which these subsidiaries operate.

ESG and sustainability may be buzzwords for some corporations seeking to appear politically correct, but at FirstHoldCo, they are integral to its identity.

The company is self-driven in aligning its strategy and operations with ESG principles and setting new sustainability benchmarks for financial services in Nigeria.

FirstHoldCo’ s flagship subsidiaries, FirstBank and FBNQuest, integrate ESG risks into their products, services, and offerings from the ideation stage through to development and launch. This approach drives responsible lending and investment practices, enabling the group to leverage ESG market opportunities while promoting sustainable socio-economic growth.

FirstHoldCo also prioritises people empowerment, fostering a work environment rooted in equal opportunities, diversity, and inclusion. A notable achievement is bridging the diversity gap, reaching a 40% female to 60% male employee ratio in 2023, one year ahead of its 2024 target.

The group also supports the communities where its subsidiaries operate, ensuring its impact resonates positively.

Since 2017, it has implemented the SPARK (Start Performing Acts of Random Kindness) initiative and Corporate Responsibility and Sustainability (CR&S) Week.

In 2023, these initiatives impacted 60,000 lives through outreaches to 60 orphanages, 20 schools, and hospitals across Nigeria, Ghana, Senegal, The Gambia, the Democratic Republic of Congo, Sierra Leone, and the United Kingdom.

Donations included consumables, computers, clean water projects, school renovations, wheelchairs, and cash. Employees committed over 27,000 volunteer hours to these initiatives.

In 2023, FirstBank reinforced its commitment to empowering women through FirstGem, a financial product supporting women-led businesses.

Over N36 billion in loans were disbursed at a single-digit interest rate of 9%. Additionally, its Agency Banking business, FirstMonie, expanded its female agent network to over 55,000.

Inclusion remains a key focus, with FirstBank enhancing accessibility for physically challenged customers in 234 locations, making 25 branches fully accessible and improving access at 209 others.

It also expanded the SPARK initiative to institutions like the Bethesda School of the Blind and the Down Syndrome Foundation in Lagos.

FirstBank operates an Environmental, Social, and Governance Management System (ESGMS) to drive responsible lending and minimize ESG risks. In 2023, this system was enhanced to ensure real-time transparency in corporate credit screenings. That year, 2,239 credit transactions worth N4.236 trillion were assessed for ESG risks.

To strengthen ESG compliance, FirstBank collaborates with development partners such as British International Investment, the African Development Bank, the International Finance Corporation (IFC), and Proparco, a French development finance institution.

Its partnership with Proparco is crucial for integrating climate initiatives into business strategy. This project enhances its understanding of financed emissions and positions it for climate financing and investment opportunities.

This initiative will help FirstBank reduce greenhouse gas (GHG) emissions, mitigate exposure to physical and transition risks, and strengthen climate adaptation efforts.

It also reinforces its market competitiveness as an ESG leader committed to a low-carbon economy.

As part of its commitment to decarbonisation, FirstHoldCo’ s FirstBank actively engages in reforestation and afforestation through partnerships focused on carbon dioxide (CO2) removal. In 2023, it pledged to plant 50,000 trees by 2025 in collaboration with the Nigerian Conservation Foundation (NCF).

That year, it planted 1,000 trees at the Lekki Conservation Centre, Lagos; Model Secondary School, Maitama, Abuja; and Federal Government Girls College, Calabar. By the following year, it had planted an additional 30,000 trees, bringing the total to 31,000.

FirstBank also drives thought leadership in climate finance, promoting knowledge on carbon mitigation and climate adaptation.

A notable effort was a webinar themed ‘Harnessing Climate Finance Opportunities in Nigeria,’ held in partnership with the Sustainability Practitioners Institute of Nigeria (SPIN).

The event featured prominent ESG and sustainability experts such as Professor Kenneth Amaeshi, Dr. Muntaqa Umaru-Sadiq, and Carina Dunker, underscoring FirstBank’s commitment to advancing climate finance discussions.

With so much achieved and ongoing ESG/sustainability initiatives, what is the greatest impact of ESG at FirstHoldCo?

For the group, it is the net positive effect on the communities where its subsidiaries operate. For individuals, it is the tangible benefits from its financial solutions and CSR initiatives.

For businesses, it is the sustainable practices FirstHoldCo champions, setting a standard for responsible corporate leadership

Clarifying some reports circulating online, the bank said it has diligently performed its obligations under the loan agreements. However, at the root of the present dispute which is “FirstBank’s demand for good governance and transparency in the transaction, which GHL rejected”.

Recall that GHL [General Hydrocarbons Limited] issued a similar statement in which the company officially disputed claims regarding an alleged debt to First Bank of Nigeria (FBN) Limited.

The management asserts that the company does not owe any money to the bank, including the claimed sum of $225 million.

GHL which cited several agreements between it and FBN explained that there was a subsisting moratorium pending commercial oil production.

In addition to this, it also stated that there was a Federal High Court judgement in its favour, adding further that FBN’s claim of indebtedness, especially in the media space was “misleading and malicious”.

But, FirstBank punctured GHL’s claims as follows:

“As a responsible and law-abiding corporate citizen of Nigeria with utmost respect for the courts, FirstBank will not be able to offer comments on issues which are pending for determination by the courts, as such issues are sub-judice.

“However, we are constrained to issue the following clarifications to correct the sponsored but false narratives on the matter presented in some of the media publications.

“There is a subsisting commercial transaction between FirstBank as lender, and GHL as borrower, where FirstBank extended several credit facilities to GHL for the development of some Oil Mining Lease assets.

“These facilities are backed by very robust loan agreements executed by the parties in which the obligations of the parties are clearly defined and the security arrangement clearly spelt out.

“While FirstBank has diligently performed its obligations under the loan agreements, at the root of the present dispute is FirstBank’s demand for good governance and transparency in the transaction, which GHL rejected.

“Upon FirstBank’s realization of breaches on the part of GHL including diversion of proceeds, FirstBank requested that an independent operator mutually acceptable to both parties be appointed in line with the terms of the agreement, to operate the financed asset in a transparent manner that will bring greater visibility to the project, protect the interest of, and bring value to all stakeholders. Not only did GHL roundly reject this reasonable and fair request, rather GHL insisted that FirstBank avails it with more funding. GHL refused to execute the terms of offer stipulated by the Bank for the availment of additional funding but rather proceeded to commence needless Arbitral proceedings.

“GHL issued a notice to initiate arbitration and has no substantive claim pending at the Federal High Court. GHL approached the Federal High Court solely to seek preservative orders pending arbitration. Some of the preservative orders sought by GHL were granted while others were denied.

“FirstBank is the only party that filed a substantive claim against GHL at the Federal High Court and the subject matter of FirstBank ‘s claim is not identical with the dispute GHL submitted to arbitration because FirstBank’s claim is in respect of subsequent credit facilities granted to GHL and the offer letters and finance documents pertaining to the subsequent transactions clearly state that the disputes arising from the subsequent facilities are to be resolved by a court of competent jurisdiction in Nigeria and not by arbitration.

“Consequently, it is incorrect to assert that FirstBank abused the process of the court.

“GHL off-took crude from the Floating Production Storage and Offloading (FPSO) vessel and diverted the proceeds. The Bank had no choice as a secured lender, under these circumstances of continued breaches, non-payment of due obligations and attempts to shield the Bank away from agreed security and repayment sources, than to approach the court for legal remedies, to preserve assets, recover the diverted proceeds, prevent reoccurrences and safeguard FirstBank’s interest. It is clear to us that the courts do not support or protect illegalities and breaches of contracts.

“FirstBank has a long and very rich history of supporting and providing for the financial needs of its customers over its more than 130 years of unbroken existence.  FirstBank remains committed to ensuring that it continues to support legitimate business aspirations of its teeming customers.

“At the same time, FirstBank is committed to the building of a strong credit culture where borrowers pay their debts when they borrow and will always take appropriate steps, within the ambit of the law, to resist attempts by borrowers to repudiate their repayment obligations.

“We wish to assure FirstBank’s numerous customers, stakeholders and the general public that FirstBank remains solid, calm, steadfast and unflinching in its resolve to continue to provide first-class services to its teeming customers within and outside the country.

“FirstBank also wishes to respectfully thank our shareholders for the indicatively oversubscribed Rights Issue of its parent Company, First Holdco Plc (“FirstHoldco”), in the first round of its capital raise and looks forward to an equally successful final leg of the recapitalization exercise when it is announced by FirstHoldco”.