First HoldCo Plc has reported a 60.8 per cent year-on-year increase in profit before tax to ₦911.2 billion for the nine months ended September 2026, while profit after tax rose 65.1 per cent to ₦744.5 billion.
The Group’s performance reflects improved operating efficiency, stronger capitalisation, diversified revenue streams and progress in asset-quality recovery.
Gross earnings grew 8.8 per cent to ₦2.87 trillion, while return on average equity increased to 27.7 per cent from 24.7 per cent in the corresponding period of 2025. Return on average assets also improved to 3.3 per cent from 2.6 per cent.
Non-interest income surged 143.5 per cent to ₦722.9 billion, supported by a 48.1 per cent rise in net fee and commission income to ₦316.4 billion. The growth reflects increased contributions from electronic banking, fund transfers, credit-related services and other income sources.
Operating efficiency also improved, as operating expenses fell 8.1 per cent to ₦866.6 billion, while operating income increased 10.3 per cent. Consequently, the cost-to-income ratio declined to 43.7 per cent from 52.4 per cent.
However, net interest income dropped 16 per cent to ₦1.26 trillion, while net interest margin fell to 8.7 per cent from 11.3 per cent, reflecting softer asset yields. The Group’s cost of funds improved to 4.5 per cent from 4.9 per cent.
Balance Sheet and Capital Position Strengthen
Total assets rose 18.1 per cent from the end of 2025 to ₦32.20 trillion, while customer deposits increased 21.3 per cent to ₦22.91 trillion. Group equity also grew 17 per cent to ₦3.86 trillion.
Net customer loans rose more moderately by 4.8 per cent to ₦9.39 trillion, reflecting a measured approach to lending and capital deployment.
FirstBank’s capital adequacy ratio improved to 18.6 per cent in September 2026 from 16.7 per cent at the end of June, strengthening the Group’s capacity to absorb risks and support selective lending.
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Non-Performing Loans Decline
The Group recorded progress in asset-quality recovery, with its non-performing loan (NPL) ratio falling to 10.4 per cent from 13.9 per cent at the end of the first half of 2026.
NPL coverage, including regulatory reserves, increased to 98.8 per cent, while impairment charges declined 28.3 per cent to ₦207.1 billion. Recoveries during the period stood at ₦94.3 billion.
Despite the improvement, the NPL ratio remains elevated, making further recoveries and efforts to resolve troubled loans important to sustaining the Group’s financial position.
The Group also holds more than ₦850 billion in regulatory risk reserves, providing an additional buffer against credit risks.
Investment Banking Segment Records Strong Growth
Commercial Banking remained First HoldCo’s largest earnings contributor, recording gross earnings of ₦2.70 trillion and profit before tax of ₦784.7 billion.
Its Investment Banking and Asset Management business also delivered strong growth. Gross earnings rose 85.5 per cent to ₦120.1 billion, while profit before tax increased 133.6 per cent to ₦85.7 billion.
The performance highlights the growing contribution of advisory, asset management, trusteeship, brokerage and securities services to the Group’s revenue base.
Shareholder Returns and Outlook
First HoldCo’s shares gained 200.84 per cent year to date as of October 23, 2026, according to the figures cited in the performance review, placing it ahead of its banking peers in total shareholder return for the year.
The Group also reaffirmed its commitment to shareholder returns through an enhanced dividend policy under which the Board approved a minimum annual distribution of 60 per cent of profit after tax, beginning with the 2027 accounts. The policy remains subject to distributable reserves, regulatory approvals and prevailing financial conditions.
Looking ahead, First HoldCo’s performance will depend partly on further reductions in non-performing loans, a recovery in net interest margins, disciplined lending and sustained growth in fee-based income.
Overall, the nine-month results point to stronger profitability, improved cost efficiency and a firmer capital position, although interest-margin pressure and the remaining stock of non-performing loans remain key challenges.
