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…Stronger capital, lower impairment losses drive growth
First HoldCo Plc has reported a strong financial performance for the first half of 2026, posting a profit before tax of N653.5 billion, an 83.5 per cent increase from N356.1 billion recorded in the corresponding period of 2025.
The financial services group also recorded gross earnings of N1.93 trillion, up 16.7 per cent year-on-year from N1.66 trillion, according to its unaudited results for the six months ended June 30, 2026.
Profit after tax rose by 81.6 per cent to N526.1 billion, while operating income increased by 25.8 per cent to N1.38 trillion, reflecting stronger earnings from both core banking operations and non-interest income.
The results showed that non-interest income surged by 162.5 per cent to N497.1 billion, driven by robust growth in electronic banking, brokerage, trade finance, funds transfer, commissions and other transaction-based businesses.
Although interest income dipped marginally by 2.7 per cent to N1.40 trillion, the Group maintained a healthy net interest margin of 9.5 per cent, supported by a lower cost of funds, improved funding mix and disciplined balance sheet management.
The Group also recorded significant improvement in asset quality, with impairment charges declining by 37.4 per cent to N116.1 billion from N185.4 billion a year earlier.
On the balance sheet, total assets rose by 12.5 per cent to N30.65 trillion, while customer deposits increased by 16.2 per cent to N21.93 trillion.
Net customer loans and advances grew by 6.1 per cent to N9.51 trillion.
Commenting on the performance, Group Managing Director, Wale Oyedeji, said the results demonstrate that the company has successfully transitioned from recovery to a new phase of disciplined growth.
He said: “FirstHoldCo delivered a strong H1 2026 performance, which highlights the resilience of our franchise and the effectiveness of our balance sheet reset executed over the past year. We are now moving decisively from recovery to disciplined growth, supported by restored capital, improved efficiency, and sustained earnings momentum.”
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According to him, the strong earnings build on the momentum recorded in the first quarter and underscore the strength of the Group’s diversified business model.
“Our H1 results highlight the growing diversity and scalability of the Group’s earnings engine. Non-interest income rose to N497.1 billion, driven by robust fee and commission income across electronic banking, brokerage, trade, funds transfer and other transaction-led businesses,” he said.
Oyedeji noted that the improvement in the Group’s cost-to-income ratio to 44.2 per cent from 50.5 per cent reflected strong cost discipline, with income growth significantly outpacing operating expenses.
He added that the Group remained focused on strengthening asset quality through prudent risk management, noting that recoveries from legacy exposures had reached approximately N91.9 billion during the period.
“I am pleased to report that FirstBank’s capital adequacy ratio has been restored ahead of the 120-day plan as communicated in our last earnings call, standing at 16.7 per cent as at H1 2026, supported by fresh equity, stronger earnings and improved profitability. Liquidity ratio remains robust at 52.2 per cent,” he stated.
Oyedeji also highlighted the growing contribution of the Group’s non-banking businesses, saying its Investment Banking and Asset Management subsidiary generated N46 billion in gross earnings and N27.4 billion in profit before tax, supported by an asset base of N572.3 billion.
According to him, the performance validates the strategic importance of the Group’s investment banking, asset management, trustee and securities businesses as demand for sophisticated financial solutions continues to grow.
The commercial banking business remained the dominant earnings contributor, generating N1.84 trillion in gross earnings, representing a 14.5 per cent increase over the corresponding period of last year. The segment also posted N590.2 billion in profit before tax, while customer deposits climbed to N22 trillion and total assets rose to N30 trillion.
Looking ahead, Oyedeji expressed confidence that the Group would sustain its growth trajectory in the second half of the year.
“FirstHoldCo enters the second half of 2026 with clear momentum, stronger fundamentals and a sharper path to sustainable value creation. Our performance reflects a capital-restored institution with deep market relevance, a diversified and increasingly efficient revenue base, improving asset quality and disciplined risk execution. We are confident in our ability to deliver superior, sustainable returns and deepen shareholder value,” he said.
