First HoldCo Plc has released its unaudited Q1 2026 results, reporting a pre-tax profit of N321.12 billion for the period, representing an increase of 72.20% compared to N186.48 billion recorded in Q1 2025.
Profit after tax also rose to N267.80 billion, up 56.52% from N171.10 billion reported in the corresponding period of 2025. Earnings per share increased to N6.00, compared to N4.72 in Q1 2025.
The strong bottom-line performance was supported by growth in both interest and non-interest income.
Key Highlights (Q1 2026 vs Q1 2025
- Interest income: N704.45 billion; +12.66% YoY
- Interest expense: N265.70 billion; +2.16% YoY
- Net interest income: N438.76 billion; +20.14% YoY
- Impairment charge for losses: N40.35 billion; +8.32%
- Net interest income after impairment: N398.40 billion; +21.49% YoY
- Net fee and commission income: N78.91 billion; +23.09% YoY
- Foreign exchange gains: N4.41 billion; -94.52% YoY
- Other operating income: N43.17 billion; +510.72% YoY
- Operating profit: N320.03 billion; +71.42% YoY
- Profit before tax: N321.12 billion; +72.20% YoY
- Profit after tax: N267.80 billion; +56.52% YoY
- Earnings per share: N6.00; +7.12% YoY
- Total assets: N26.88 trillion; -1.37%
- Loans and advances to customers: N9.44 trillion; +5.27%
- Deposits from customers: N18.38 trillion; -2.66%
- Shareholders’ funds: N3.47 trillion; +5.15%
Driving the numbers
FirstHoldCo’s strong earnings performance in Q1 2026 was primarily driven by growth in core banking income.
- Interest income rose to N704.45 billion, largely supported by income from loans and advances to banks and customers, which jointly contributed N511.48 billion and accounted for about 72.6% of total interest income during the quarter.
- This was complemented by interest income from investment securities, which stood at N192.97 billion and represented 27.39% of total interest income, down from 35.6% in Q1 2025.
The decline in contribution from investment securities aligns with the reduction in the Group’s investment securities portfolio, which fell to N6.58 trillion as of March 2026 from N6.97 trillion as of December 2025.
- On the other hand, loans and advances to customers increased by 5.27% or N472.54 billion to N9.44 trillion.
However, interest expenses grew at a much slower pace of 2.16%, helping net interest income expand by over 20% to N439 billion
- Interest expenses on customers’ deposits still account for greater percentage of total interest expenses. The bank paid N194.112 billion on interest expenses on customer deposit up 24% YoY
A N3.9 billion write-back helped moderate the growth in net impairment charges on financial assets, which rose to N40.35 billion from N37.25 billion in Q1 2025.
- Consequently, net interest income after impairment charges increased strongly to N398.40 billion, representing a 21.49% increase compared to N327.94 billion recorded in the corresponding period of 2025.
Non-interest income
The Group also recorded significant improvements in non-interest revenue lines. Total non-interest income increased by 111% to N219.225 billion in Q1 2026, driven by strong net fee and commission income, and significant growth in net gain on sale in investment securities.
- Net fee and commission income increased by 23.09% to N78.91 billion, driven by strong growth in credit-related fees, as well as higher income from electronic banking fees and commissions on letters of credit.
- In addition, net gains on the sale of investment securities surged to N46.57 billion from just N136 million recorded in the prior year period, further supporting the Group’s non-interest income growth. Also, the Group reported a N45.28 billion gain from financial instruments at fair value through profit or loss, compared to a N47.91 billion loss recorded in Q1 2025.
- Other operating income also rose sharply to N43.17 billion, contributing to the strong operating profit growth during the quarter.
However, foreign exchange gains declined significantly to N4.41 billion from N80.48 billion recorded in the corresponding period of 2025, reflecting a lower contribution from currency-related revaluation gains.
Operating expenses
On the cost side, personnel expenses increased to N89.27 billion, while other operating expenses rose to N187.67 billion.
Despite the higher operating costs, the Group still delivered strong profitability growth due to the robust expansion in operating income.
Balance Sheet
Total assets declined slightly due to reductions in investment securities and balances pledged as collateral.
- However, loans and advances to customers increased to N9.44 trillion, reinforcing the Group’s loan growth strategy.
On the liabilities side, customers’ deposits, although dropped by 2.66% to N18.380 trillion, still accounted for 68% of the balance sheet size.
- Shareholders’ funds rose to N3.47 trillion, supported by retained earnings growth from the quarter’s profit performance, substantial regulatory risk reserve and foreign currency translation reserve book values.
Market reaction
First HoldCo began the year with a share price of N47.90. Ahead of the release of its audited 2025 results, the stock closed at N61.00 and subsequently gained 1.07% to close at N61.65 after the earnings announcement.
Investor sentiment strengthened further on May 8, 2026, with the stock trading as high as N67.50 during the session, reflecting sustained market optimism around the Group’s earnings performance and balance sheet position.
The stock has delivered a year-to-date return of 28.7%, although it remains down 4.6% on a month-to-date basis.
