FirstHoldCo Reports 72.2% Profit Surge in Q1 2026

FirstHoldCo Plc delivered impressive financial results for the first quarter of 2026, recording a 72.2% year-on-year increase in profit before tax (PBT). The company’s PBT surged to ₦321.12 billion, up from ₦186.48 billion in the same period of 2025, bolstered by strong interest income and robust fee generation. 

FirstHoldCo’s Q1 2026 results reaffirm its position as a leading player in Nigeria’s banking sector, emerging as the second-largest lender by PBT, trailing only Zenith Bank. Zenith reported a PBT of ₦360.91 billion, while FirstHoldCo’s ₦321.12 billion placed it ahead of other top banks like GTCO, Access Holdings, and UBA.

The company’s recovery follows a comprehensive “clean-up” of its balance sheet in 2025, which included a historic ₦826.3 billion impairment charge to resolve legacy debt issues. This decisive action has allowed FirstHoldCo to take full advantage of the current high-interest-rate environment, with the Central Bank of Nigeria (CBN) maintaining a hawkish stance to combat inflation.

Return on Equity Leadership

FirstHoldCo’s performance is further underscored by its standout Q1 2026 post-tax Return on Equity (ROE) of 31.6%. This marks a dramatic recovery from the 4.6% ROE in December 2025, which was weighed down by the balance sheet reset. Notably, FirstHoldCo outperformed its competitors in ROE, surpassing all FUGAZ group banks, including Zenith, GTCO, Access, and UBA.

Revenue Growth and Optimised Asset Mix

FirstHoldCo’s revenue growth is primarily driven by its superior asset yield, particularly from its loan book. In Q1 2026, the company generated ₦465.6 billion in interest income from loans and advances, a 27.8% increase from the previous year. This growth significantly outpaced its competitors, highlighting FirstHoldCo’s ability to identify high-quality lending opportunities even in a tight liquidity environment.

Operational Efficiency and Cost Control

FirstHoldCo’s operational efficiency also improved, with its Cost-to-Income Ratio (CIR) dropping from 53.8% in late 2025 to 45.2% in Q1 2026. While still behind industry leaders like GTCO and Zenith, this improvement is notable given the rise in operating expenses, which increased by 21.3% year-on-year to ₦297.6 billion. The group’s net earnings grew by 40.2%, showcasing its ability to generate positive operating leverage.

Debt Recovery and Credit Quality

One of the most remarkable improvements in FirstHoldCo’s financial performance is its significant increase in loan recoveries. In Q1 2025, recoveries were a modest ₦1 billion, but in Q1 2026, this surged by 1,570% to ₦19 billion. This surge is a direct result of the 2025 balance sheet reset, which cleared out non-performing loans (NPLs), allowing the bank’s recovery units to reclaim value from previously written-off assets.

Liquidity and Funding Position

FirstHoldCo’s total assets reached ₦26.8 trillion in March 2026, a slight 1.4% decline from December 2025, reflecting ongoing balance-sheet management. Despite this, the company remains well-positioned for future growth as it enters the next phase of Nigeria’s economic recovery.

Outlook for Growth

FirstHoldCo’s Q1 2026 results confirm the success of its strategic reset and set the stage for future growth. The company’s leadership in ROE and PBT growth is the result of a deliberate focus on high-yield customer lending, aggressive asset recovery, and efficient capital management. As the benefits of its recapitalisation continue to unfold, FirstHoldCo is well-positioned to narrow the valuation gap with tier-one rivals like Zenith and GTCO.