First HoldCo Leads Nigeria's Tier-1 Banks with Strong H1 2026 Performance

First HoldCo Plc, Nigeria's oldest financial group, achieved its strongest half-year performance in history for H1 2026. The company reported a 16.7% year-on-year increase in gross earnings to N1.93 trillion, up from N1.66 trillion in H1 2025. Under the leadership of Group Chairman Femi Otedola and GMD Wale Oyedeji, First HoldCo shifted from recovery to disciplined growth. The bank's performance was driven by a massive surge in non-interest income and successful balance sheet restructuring.

The bank's Profit Before Tax (PBT) surged 83.5% to N653.5 billion, compared to N356.1 billion in the same period last year. Profit After Tax (PAT) increased by 81.6% to N526.1 billion, while Earnings Per Share (EPS) jumped to N11.74 per share, up from N6.84 in H1 2025. Despite an enlarged share count from corporate capital raises, the bank's profitability metrics showed significant improvement. Core net interest income experienced a slight contraction of 2.84% to N879.1 billion.

Non-interest income was a major growth driver, increasing by 162.5% to N497.1 billion. This growth was largely due to transaction banking, brokerage, electronic banking, and treasury fees. The bank's cost-to-income ratio improved significantly to 44.2%, down from 50.5% in H1 2025. This demonstrates strict operating discipline, as revenue growth outpaced costs. Loan impairment charges dropped by 37.4% to N116.1 billion, and the group recorded N91.9 billion in recoveries from legacy exposures.

First HoldCo's balance sheet strength and capital adequacy also showed improvement. Total Assets expanded to N30.65 trillion as of June 30, 2026, up from N27.25 trillion at the end of December 2025. Customer deposits grew to N21.93 trillion, while net loans and advances stood at N9.51 trillion. The bank's capital position was successfully restored to 16.7%, exceeding the regulatory 15.0% ceiling. This was supported by a N45 billion private placement capital injection and strong retained earnings.

The bank's Liquidity Ratio was strongly positioned at 52.2%. The improvement in financial performance and asset quality ratios was driven by disciplined execution and strategic decision-making. The bank's ability to grow revenue and reduce costs has positioned it for long-term success. As the Nigerian banking sector continues to evolve, First HoldCo's performance sets a strong benchmark for its peers.

The traditional "FUGAZ" structure, which comprises Nigeria's Tier-1 banks, continued to evolve in H1 2026. The divergence in performance metrics among these banks was driven by rising deposit funding costs, massive tax hits, and varying reliance on non-interest income. While gross revenues remained high across the board, the explosive year-on-year profit surges seen in previous years softened into a mixed earnings bag.

The performance of First HoldCo Plc in H1 2026 demonstrates its resilience and ability to adapt to changing market conditions. The bank's focus on non-interest income and cost discipline has paid off, positioning it for continued growth and success in the Nigerian banking sector. As the sector continues to evolve, First HoldCo's strong performance sets a positive precedent for its peers.

Key points

• First HoldCo Plc reported an 83.5% surge in Profit Before Tax to N653.5 billion for H1 2026.