FirstHoldCo Rebounds Strongly in Q1 2026 After Balance Sheet Reset, Despite 2025 Profit Decline

FirstHoldCo Rebounds Strongly in Q1 2026 After Balance Sheet Reset, Despite 2025 Profit Decline

FirstHoldCo Plc⁠� has reported a strong recovery in its first quarter 2026 financial performance after a challenging 2025 financial year marked by heavy impairment charges and aggressive balance sheet clean-up measures.

The diversified financial services group posted a profit before tax of ₦321.1 billion in Q1 2026, representing a 72.2 per cent increase from ₦186.5 billion recorded in the corresponding period of 2025. Profit after tax also rose significantly by 56.5 per cent to ₦267.8 billion, while gross earnings climbed by 26.8 per cent to ₦942 billion.

The impressive Q1 recovery followed the Group’s difficult 2025 audited performance, where profit before tax fell sharply by 70.5 per cent to ₦235 billion from ₦796.5 billion in 2024 due largely to elevated impairment charges linked to non-performing loans and the normalisation of foreign exchange gains recorded in prior years.

For the full year ended December 31, 2025, FirstHoldCo grew gross earnings by 6.9 per cent to ₦3.4 trillion, driven mainly by a 24.9 per cent increase in interest income to ₦2.99 trillion and a 36.8 per cent rise in net interest income to ₦1.92 trillion.

However, impairment charges nearly doubled to ₦826.3 billion from ₦426.3 billion in 2024, significantly impacting profitability. Operating expenses also increased by 32.1 per cent to ₦1.23 trillion amid inflationary pressures, higher personnel costs, regulatory charges, and increased technology and brand investments.

Commenting on the results, the Group Managing Director, Wale Oyedeji, described 2025 as a defining year for the institution.

According to him, the Group undertook deliberate measures to comprehensively de-risk its balance sheet by adequately providing for systemic impaired and non-performing exposures, especially within the oil and gas sector.

He stated that the decisive actions have strengthened the Group’s financial foundation and positioned it for sustainable long-term growth, improved asset quality and enhanced earnings quality.

Oyedeji noted that the Group had already begun to reap the benefits of those strategic actions, as reflected in the strong Q1 2026 performance.

He said the first quarter result validates the resilience of the FirstHoldCo franchise and demonstrates the institution’s ability to generate sustainable shareholder value despite market volatility.

The Group’s balance sheet remained strong during the period under review, with total assets standing at ₦27.3 trillion as at the end of 2025, while customer deposits rose by 10 per cent to ₦18.9 trillion, supported by a high-quality Current and Savings Account (CASA) mix of 93.1 per cent.

In Q1 2026, customer loans and advances increased by 5.3 per cent to ₦9.44 trillion, although customer deposits moderated slightly to ₦18.38 trillion.

Asset quality remained a major focus for the Group as the non-performing loan ratio rose from 10.2 per cent in 2024 to 12 per cent in 2025 and further to 13.4 per cent in Q1 2026. Despite the increase, the Group improved its NPL coverage ratio significantly to 98.7 per cent in 2025, reflecting stronger provisioning and enhanced balance sheet resilience.

The Group also recorded notable recoveries from delinquent obligors in the oil and gas sector, with approximately ₦19 billion recovered in the first quarter of 2026 alone.

FirstHoldCo further strengthened its capital position through ongoing capital raising initiatives aimed at meeting the new regulatory minimum capital requirement of ₦500 billion for Nigerian banks. Under its ₦350 billion capital raise programme, the Group disclosed that it had secured ₦128.7 billion as of the reporting date.

Across its business segments, Commercial Banking remained the dominant contributor to earnings. The segment generated gross earnings of ₦3.36 trillion in 2025 and ₦897.1 billion in Q1 2026, while Investment Banking and Asset Management recorded gross earnings of ₦72.8 billion for FY 2025 and ₦22.9 billion in Q1 2026.

Looking ahead, the Group said it would continue focusing on improving earnings quality, strengthening asset quality, enhancing operational efficiency, deepening governance standards and expanding its non-banking businesses.

Management expressed confidence that the cleaner balance sheet, stronger capital base and improving recoveries position the Group for accelerated growth and stronger shareholder returns in 2026 and beyond.