The current valuation of First HoldCo Plc, presents a stark anomaly in the Nigerian banking sector. Despite its status as a systemically important financial institution (SIFI) with a massive ₦2.39 trillion market capitalization, it continues to trade at a deep discount to its accounting worth.
As of February 20, 2026, the stock closed at a record ₦54.00, yet its Price-to-Book (P/B) ratio remains at 0.61x. For context, a P/B ratio below 1.0 indicates that the market is valuing the company at less than the net value of its assets.
First HoldCo Plc record closing high of ₦54.00 hit on Friday, could signal the start of a long-awaited in-sector rotation.
Despite the 12.7% YTD rally, the stock remains the laggard among Nigeria’s Tier-1 banking “Big Five,” trading at a massive valuation discount compared to its peers.
With the bank now operating on a “clean slate” following its ₦748 billion impairment flush in 2025, institutional investors are increasingly viewing First HoldCo as the premier “catch-up” trade of the first quarter.
The Valuation Gap: Why Analysts See a Re-rating
Despite its systemic importance and a market cap of ₦2.39 trillion, First HoldCo is trading at a significant discount to its book value.
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Deep Value: At a Price to Book (P/B) of 0.61, First HoldCo is effectively selling for 61 cents on the dollar of its net assets. For it to match Zenith’s modest 0.75x P/B valuation, the share price would need to rally to ₦66.00. To trade at 1x book value it would rally to ₦88.00 and matching GTCO’s valuation would mean trading close to ₦115.00 per share.
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The Laggard Trade: First HoldCo has underperformed the NGX All-Share Index by nearly 13% this year, creating a “coiled spring” effect as fund managers rotate out of “expensive” banks like GTCO (P/B 1.30) into “undervalued” alternatives.
The “Clean Slate” Strategy: 2026 Earnings Normalization
First HoldCo’s 2025 financial year was a year of “pain for future gain.” The lender booked a one-time ₦748 billion impairment charge to:
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Exit Forbearance: Finally move out of the Central Bank’s long-standing regulatory support regime.
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Boost Buffers: Successfully cross the ₦500 billion minimum capital threshold required by the CBN.
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Asset Quality: Ensure that 2026 earnings are not dragged down by legacy bad loans, allowing for “clean” profit reporting.
Catalysts for Further Upside
Analysts at Chapel Hill Denham suggest the rally to ₦54 is just the beginning of a broader re-rating:
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Yield Deployment: Having raised fresh capital, First HoldCo is now deploying these billions into higher-yielding, risk-adjusted assets in a 20%+ interest rate environment.
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Operational Efficiency: With the balance sheet repaired, the bank is expected to see a sharp improvement in its Return on Equity (ROE) as the “denominator effect” of the impairment flush wears off.
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Technological Rebirth: The ongoing digital transformation of FirstBank (the group’s core asset) is expected to lower the cost-to-income ratio, bringing it closer to the industry-leading levels of GTCO.
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