First HoldCo Hits ₦64.00 Record but Still Trades at 30% Discount to Book

First HoldCo Plc has solidified its position as one of the most compelling risk-reward plays in the Nigerian banking sector.

During Friday’s trading session on the NGX (April 17, 2026), the tier-one lender’s stock surged by 9.5% to close at an all-time high of ₦64.00 per share.

Despite this record-breaking run, the stock remains fundamentally “cheap” when measured against its intrinsic value.

While the broader market has rallied significantly following Nigeria’s FTSE Russell reclassification, First HoldCo continues to trade at a deep discount compared to its tier-one peers, signaling significant room for further capital appreciation.

The Valuation Gap: First HoldCo vs. GTCO and Zenith

The “Price-to-Book” (P/B) ratio is the primary metric attracting value investors to First HoldCo. A P/B below 1.0x suggests that the market is valuing the bank at less than the net value of its assets.

Source: Bloomberg

• The 30% Upside: To catch up with Zenith’s 1.05x valuation, First HoldCo would need to trade closer to ₦95.00. Analysts believe the current 0.7x ratio doesn’t reflect the bank’s recently “cleaned” books or its fortified capital base.

• The “Discount to Book” Win: Buying at ₦64.00 still represents a circa. 30% discount to the literal value of its assets.

The “Fortress” Balance Sheet: Post-Recapitalization Power

First HoldCo spent 2025 executing a multi-stage capital raise that has fundamentally transformed its financial stability.

• Capital Base: The bank successfully hit its ₦500 billion capital target in Q1 2026, well ahead of the CBN’s industry-wide deadline.

• Asset Quality: Having aggressively provided for legacy loans in 2025, the bank enters 2026 with a “clean slate.” This allows it to “sweat” its assets—meaning every new loan is backed by superior capital adequacy, leading to higher Net Interest Margins (NIMs).

• Liquidity Flush: The bank is currently sitting on a massive pool of liquidity from the completion of a series of strategic capital initiatives, including a ₦150bn Rights Issue, Private Placement, and the injection of proceeds from the divestment of the Group’s merchant banking subsidiary.

Q1 2026 Outlook: The Next Catalyst

The market is now in a “wait-and-see” mode for the bank’s First Quarter (Q1) 2026 figures, expected in late April.

• Earnings Momentum: Following a 2025 that saw the group generate a staggering ₦2.96 trillion in interest income, a 23.6% surge that underscores its massive footprint in the Nigerian credit market, investors are expecting bigger things in 2026.

• Dividend Potential: With a stronger balance sheet and higher capital adequacy, there is growing speculation that First HoldCo may increase its payout ratio, boosting investor returns.

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