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First HoldCo posted a record ₦653.5 billion pre-tax profit in the first half of 2026, driven by stronger fee income, lower impairment charges, and improved operating efficiency.
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The banking group restored FirstBank’s Capital Adequacy Ratio ahead of schedule while growing deposits, loans and shareholder equity, strengthening its balance sheet for future expansion.
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With half-year profit already exceeding ₦526 billion, the lender is on track to deliver more than ₦1 trillion in annual earnings if current momentum is sustained.
July 21, (THEWILL) — First HoldCo Plc, the parent company of FirstBank of Nigeria, has moved within touching distance of becoming Nigeria’s latest trillion-naira profit bank after posting record half-year earnings that underline the strength of its ongoing transformation programme.
The financial services group reported profit before tax of ₦653.54 billion for the six months ended June 30, 2026, representing an 83.5 percent increase from ₦356.15 billion recorded in the corresponding period of 2025.
Profit after tax also rose sharply by 81.6 percent to ₦526.13 billion from ₦289.83 billion a year earlier, placing the banking group on track to exceed ₦1 trillion in annual earnings if current performance is maintained through the second half of the year.
Gross earnings increased by 17 percent year-on-year to ₦1.93 trillion, while operating income climbed 25.8 percent to ₦1.38 trillion, reflecting stronger performance across both interest and non-interest income businesses.
Fee income and lower impairment charges lift earnings
A major driver of the strong earnings performance was improved operating efficiency and lower credit losses.
Non-interest income rose to ₦497.1 billion, supported by stronger electronic banking, trade services, brokerage, funds transfer and other transaction-led businesses.
At the same time, impairment charges fell 37.3 percent to ₦116.1 billion from ₦185.4 billion in the first half of last year, reflecting improved asset quality following the group’s balance sheet clean-up.
The lender also recovered about ₦91.9 billion from previously impaired assets during the period, further strengthening profitability.
Meanwhile, the group’s cost-to-income ratio improved to 44.19 percent, compared with 53.78 percent at the end of the 2025 financial year, highlighting tighter cost management despite continued business expansion.
Balance sheet strengthens
The group’s balance sheet also recorded broad-based growth during the six-month period.
Total assets rose 12 percent to ₦30.64 trillion, while customer deposits increased to ₦21.93 trillion as the lender continued to attract low-cost funding.
Loans and advances climbed to ₦9.79 trillion, while shareholders’ equity grew 10 percent to ₦3.62 trillion from ₦3.30 trillion recorded at the end of December 2025.
First HoldCo reported a pre-tax return on average equity of 37.7 percent, while return on assets improved to 3.63 percent.
Capital restored ahead of schedule
One of the most significant milestones during the period was the restoration of FirstBank’s Capital Adequacy Ratio ahead of schedule.
The bank’s CAR stood at 16.7 percent as of June 30, 2026, while its liquidity ratio remained strong at 52.2 percent.
Management said the improvement reflects the success of its recapitalisation programme and earnings retention strategy, providing sufficient capacity to support future business growth.
The group’s investment banking and asset management businesses also continued to expand, contributing ₦46 billion in gross earnings and ₦27.4 billion in pre-tax profit during the period.
Management optimistic
Chairman of First HoldCo, Femi Otedola, described the results as an important milestone in the group’s transformation journey.
“The first half of 2026 marks an important turning point for FirstHoldCo.
“These results affirm that the bold decisions the Board took to strengthen the institution were the right ones. We are witnessing the benefits of a stronger balance sheet and improved profitability,” he said.
Group Managing Director, Wale Oyedeji, said the performance reflected the resilience of the franchise and the success of strategic initiatives implemented over the past year.
According to him, restoring FirstBank’s capital adequacy ratio ahead of schedule, improving asset quality and growing transaction-led businesses have positioned the group for sustainable long-term growth.
The strong earnings reinforced investor confidence in the banking group.
Following the release of the H1 2026 results, First HoldCo shares gained 10 percent during Monday’s trading session to ₦105.50, extending the stock’s remarkable rally and lifting its market capitalisation to approximately ₦4.8 trillion.
The strong earnings reinforced investor confidence, lifting First HoldCo’s market capitalisation to about ₦4.8 trillion and cementing its position among the Nigerian Exchange’s best-performing banking stocks this year.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
