FirstHoldCo Plc (the parent company of FirstBank of Nigeria) is pacing toward a historic milestone, with its annualized net income tracking above the ₦1 trillion threshold in the first half (H1) of 2026.
This stellar performance, driven by a sharp decline in impairment charges and a robust surge in core fee income, signals a highly efficient recovery and clears the runway for a potential dividend windfall for shareholders.
The financial services group reported a stunning 83.5% jump in Profit Before Tax (PBT) for the half-year period ended June 30, 2026, reaching ₦653.5 billion, compared with ₦356.1 billion in the corresponding period of 2025. Net profit (profit for the period) matched this explosive trajectory, surging 81.6% year-on-year to ₦526.1 billion from ₦289.8 billion.
Gross Earnings also surged by 17% year-on-year to ₦1.93 trillion from ₦1.66 trillion in Half-Year 2025, while operating income rose by 25.8% to ₦1.38 trillion. Non-interest income rose to ₦497.1 billion, supported by impressive performance across electronic banking, trade services, brokerage, funds transfer and other transaction-led businesses. This complemented a healthy net interest margin of 9.5%, driven by disciplined pricing, an improved funding mix, lower funding costs, and continued optimisation of the balance sheet.
FirstHoldCo reported a high Pre-Tax Return on Average Equity of 37.7%, while Return on Assets surged to 3.63% in H1, 2026. Total Assets jumped 12% in the period to ₦30.64 trillion, as loans and advances rose to ₦9.79 trillion in H1, 2026.
Total customer deposits also rose, hitting ₦21.93 trillion as the tier-one lender used its scale and size to mop up cheap deposits.
Shareholder Equity meanwhile jumped to ₦3.62 trillion, up 10% from ₦3.3 trillion in December 2025.
Another significant and commendable milestone during the period was the restoration of FirstBank’s Capital Adequacy Ratio ahead of schedule, this is evidence of the effectiveness of the Group’s recapitalisation and earnings retention endeavours.
As of June 30, 2026, FirstBank’s Capital Adequacy Ratio stood at 16.7%, while liquidity ratio remained exceptionally strong at 52.2%.
This achievement provides a solid platform for future expansion and strengthens the Group’s ability to support customers, pursue growth opportunities and create long-term value.
The Group’s non-banking businesses continued to gain traction and are now playing an increasingly important role in earnings diversification.
The Investment Banking and Asset Management businesses recorded ₦46.0 billion in gross earnings and ₦27.4 billion profit before tax, supported by an asset base of ₦572.3 billion. These businesses are helping to deepen customer relationships, broaden revenue streams and position FirstHoldCo as a truly diversified financial services group.
The Group Chairman of First HoldCo Plc, Mr. Femi Otedola, CON, described the results as a significant achievement in the Group’s transformation journey.
He posited, “the first half of 2026 marks an important turning point for FirstHoldCo. These results affirm that the bold decisions the Board took to strengthen the institution were the right ones. We are witnessing the benefits of a stronger balance sheet and improved profitability.”
Organic Revenue Optimization over FX Volatility
The quality of FirstHoldCo’s current earnings run is highlighted by its reduced dependence on volatile foreign exchange windfalls. Foreign currency translation gains fell to ₦44.1 billion in the first half of 2026, down from ₦73.5 billion in H1 2025.
Rather than relying on transient macroeconomic shocks, FirstHoldCo’s growth has been structurally anchored by clean operational execution.
- Core Net Interest Income: Reached a highly resilient ₦879.1 billion (despite the lower yield environment due to CBN’s 50 basis-point rate cut, earlier in February 2026), compared with ₦904.8 billion in the prior year’s first half.
- Net Fee and Commission Income: Surged 28.7% to ₦178.5 billion, up from ₦138.7 billion, driven by rising transactional volumes and digital channels.
- Other Operating Income: Skyrocketed to ₦136.7 billion from a mere ₦13.1 billion in H1 2025, providing a significant operational buffer.
Disciplined Cost Control and Asset Quality Rebound
The half-year financials show that FirstHoldCo’s aggressive balance sheet cleanup in previous quarters is yielding immediate results. Asset quality improved substantially, allowing the bank to slash its impairment charges for losses by 37.3% to ₦116.1 billion, down from ₦185.4 billion in June 2025.
Another proof point in the risk management capability is the approximately ₦91.9 billion in recoveries during the first half of the year, demonstrating sustained success in extracting value from legacy exposures and reinforcing management’s commitment to prudent risk stewardship.
Simultaneously, management demonstrated intense cost discipline across its operational footprints with the cost-to-income ratio falling to 44.19%, down from 53.78% as at Full Year 2025.
- Personnel Expenses: Remained virtually flat, edging up just 5.4% to ₦180.3 billion from ₦170.9 billion.
- Other Operating Expenses: Grew at a below inflation and controlled rate of 11.0% to ₦384.6 billion. This disciplined rise in operating overhead is a favorable indicator, showcasing that the group is scaling its massive asset base efficiently without experiencing cost runaways.
Dividend Math and NGX Outlook
For the investment community on the Nigerian Exchange (NGX), the main focus of this earnings release is the dividend math. With half-year net profit sitting at ₦526.1 billion, FirstHoldCo is comfortably tracking to surpass a full-year bottom line of ₦1.05 trillion.
Applied across the group’s 45.47 billion outstanding shares, annualized earnings per share (EPS) is running at approximately ₦23.14.
Under the bank’s traditional capital return models, a payout ratio of 20% to 40% would place a full-year dividend between ₦5.00 and ₦10.00 per share as highly plausible. At these levels, FirstHoldCo would secure its position as one of the most lucrative high-yield dividend plays on the premium board, reinforcing strong institutional demand for its stock as the financial year unfolds.
FirstHoldCo Outpaces Tier-1 Peers with 100.3% Year-to-Date Gains on the NGX
FirstHoldCo Plc has firmly established itself as the top-performing tier-one lender on the Nigerian Exchange (NGX), with its year-to-date (YTD) capital appreciation crossing the triple-digit threshold.
As of the close of trading on Friday, July 16, 2026, FirstHoldCo equity has posted a striking +100.31% YTD return. By comparison Access Holdings is up +19.06%, Guaranty Trust Holding Company (GTCO) +42.45%, UBA +9.24% and Zenith Bank +84.47%.
This explosive upward movement heavily distances the financial holding powerhouse from its immediate Tier-1 banking peers, highlighting a significant divergence in investor sentiment and institutional positioning within the sector.
Wale Oyedeji, the Group Managing Director, said:
“Our H1 2026 performance reflects far more than strong numbers, it demonstrates the resilience of our franchise, the dedication of our people and the success of the strategic actions we undertook to reposition the Group for the future.
Over the past year, we have worked deliberately to strengthen our balance sheet, restore capital, improve asset quality, and enhance operating efficiency. The results show that those efforts are delivering meaningful outcomes and creating a stronger foundation for long-term growth.”
Adding further, Wale said, “we are particularly encouraged by the restoration of FirstBank’s capital adequacy ratio ahead of plan, the continued growth of our transaction-led businesses and the increasing contribution of our Investment Banking and Asset Management franchise.’
With restored capital, strong liquidity, improving asset quality and a diversified earnings platform, FirstHoldCo enters the second half of 2026 from a position of strength. The Group remains focused on disciplined growth, prudent risk management, operational excellence, and the delivery of sustainable value for shareholders and all stakeholders.
Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!
