First HoldCo doubles H1 2026 profit to N459.9bn

By Philippine Duru

philippineobetoduru@gmail.com

0⁸034905774

First HoldCo Plc has reported a remarkable financial performance for the first half of 2026, with profit after tax (PAT) nearly doubling to N459.9 billion, driven by robust trading income, improved operational efficiency, and a significant decline in loan impairment charges.

The group’s unaudited financial results for the six months ended June 30, 2026, underscore the resilience of its diversified business model despite the challenging macroeconomic environment, rising competition in the banking sector, and evolving regulatory landscape.

According to the financial statement released to the Nigerian Exchange (NGX), the holding company posted a profit after tax of N459.9 billion, representing a sharp increase from the corresponding period of 2025.

The impressive earnings performance was primarily supported by strong growth in trading and investment income, higher interest earnings from loans and advances, and improved contributions from its non-banking subsidiaries.

The group’s net interest income remained resilient during the review period as higher yields on earning assets helped offset funding costs. At the same time, non-interest revenue received a significant boost from increased foreign exchange trading, fixed-income securities transactions, and other financial market activities.

A major highlight of the results was the substantial reduction in loan impairment expenses, reflecting stronger asset quality, improved credit risk management, and better recoveries from previously impaired loans. Lower provisions for bad loans enabled the group to retain a larger share of its operating income, significantly enhancing overall profitability.

Operating income also rose on the back of increased customer transactions across retail, corporate, and commercial banking segments, while the group’s continued investment in digital banking platforms helped expand transaction volumes and improve customer engagement.

Despite inflationary pressures and higher operating expenses, First HoldCo maintained healthy cost management through technology-driven efficiency initiatives and disciplined expense control, allowing revenue growth to outpace increases in operating costs.

The group’s balance sheet also remained strong during the period, supported by healthy customer deposits, improved liquidity, and adequate capital buffers. Management noted that the company continues to maintain a conservative risk management framework while expanding lending to critical sectors of the Nigerian economy.

Analysts say the strong first-half performance positions First HoldCo for another robust full-year result, particularly as improved market conditions, higher trading opportunities, and stable credit quality continue to support earnings.

The performance comes at a time when Nigerian banks are benefiting from higher interest rates, stronger treasury operations, and ongoing reforms within the financial services sector. Institutions have also intensified efforts to strengthen their capital positions ahead of the Central Bank of Nigeria’s new minimum capital requirements.

Industry observers believe First HoldCo’s ability to grow earnings while reducing loan losses demonstrates the effectiveness of its balance sheet management strategy and diversified revenue base.

Looking ahead, the group is expected to focus on expanding digital financial services, deepening financial inclusion, supporting businesses across key sectors of the economy, and sustaining prudent risk management to preserve asset quality.

With a strong capital position, improving asset quality, and diversified income streams, First HoldCo appears well positioned to maintain its growth momentum through the remainder of 2026, reinforcing investor confidence and strengthening its position as one of Nigeria’s leading financial services groups.