First HoldCo Plc reported a profit before tax of N321.12 billion for the first quarter of 2026, marking a 100 per cent increase from the N186.48 billion recorded in the same period of 2025. The surge in earnings positions the company as Nigeria's second most profitable lender, trailing only Zenith Bank Plc, which posted a PBT of N360.91 billion in Q1 2026. Guaranty Trust Holding Company Plc, Access Holdings Plc, and United Bank for Africa Plc reported PBTs of N302.89 billion, N272.2 billion, and N160.65 billion respectively. First HoldCo's performance followed a major balance sheet restructuring in 2025, during which the company took an N826.3 billion impairment charge to address non-performing assets. This clean-up has yielded measurable results, with the company's Return on Equity rising sharply to 31.6 per cent in Q1 2026 from 4.6 per cent in December 2025. Interest income from loans and advances grew by 27.8 per cent year-on-year to N465.6 billion, driven by increased private sector lending. Operational efficiency improved as the Cost-to-Income Ratio declined from 53.8 per cent in late 2025 to 45.2 per cent in the first quarter of 2026. Loan recoveries also saw a dramatic rise, jumping from N1 billion in Q1 2025 to N19 billion in Q1 2026—a 1,570 per cent increase—reflecting the success of post-restructuring recovery efforts. Total assets stood at N26.8 trillion as of March 2026, indicating a more stable financial position. Analysts attribute the turnaround to both the high-interest-rate environment and the company's strategic asset quality reforms. Market observers expect the improved metrics to support sustained growth and enhanced investor confidence in the banking group.
First HoldCo's return to profitability hinges on a massive N826.3 billion write-off in 2025, a move that erased past failures but raises questions about earlier risk management. The bank's 31.6 per cent ROE in Q1 2026, up from 4.6 per cent, reflects recovery, not new growth, built on cleaning up legacy problems. Its ranking as Nigeria's second most profitable lender now depends on maintaining this restructured efficiency without slipping into old patterns. If lending growth slows or non-performing loans rise again, the current gains could quickly erode.
Editorial note: AI-assisted opinion, not established fact. Full disclaimer →
