By Bamidele Famoofo
WorldStage– First Holdco Plc delivered a strong Q1 2026 performance, driven by resilient core banking income, significant growth in non-interest revenue, and improved operational efficiency despite weaker foreign exchange revaluation gains compared to the prior year. Gross earnings rose by 26.83 percent year-on-year to N941.97 billion, supported by a 12.66 percent increase in interest income and a slower 2.16 percent rise in interest expense, which lifted net interest income by 20.14 percent to N438.76 billion.
Non-interest income also remained impressive, with fee and commission income rising by 23.67 percent, while gains on investment securities and financial instruments rebounded strongly during the quarter. Although FX income declined sharply by 94.52 percent due to the normalisation of currency revaluation gains, higher other operating income and dividend income helped sustain overall earnings momentum.
Operating income expanded by 40.23 percent to N657.98 billion, significantly outpacing the 21.33 percent growth in operating expenses and resulting in an improved cost-to-income ratio of 45 percent from 52 percent in Q1 2025. Consequently, profit before tax surged by 72.20 percent to N321.12 billion, while profit after tax rose by 60.01 percent to N267.85 billion, with earnings per share improving to N6.00.
From a balance sheet perspective, total assets declined marginally by 1.37 percent to N26.88 trillion as at March 2026, primarily driven by reductions in investment securities and pledged assets. Despite this, loans and advances grew by 2.25 percent to N12.70 trillion, reflecting sustained credit expansion during the quarter. Total liabilities also moderated by 2.26 percent due to a significant decline in borrowed funds, while shareholders’ equity strengthened by 5.16 percent to N3.47 trillion, reinforcing the Group’s capital position and overall balance sheet resilience. Investors’ reaction was positive on May 8, 2026 as the share price popped +9.98 percent on Friday in the market.
Commenting on the Holdco’s performance in Q1, Wale Oyedeji, the Group Managing Director stated that: “FirstHoldCo has begun 2026 on a strong footing, delivering a Q1 performance that validates the resilience of our franchise and the disciplined execution of our strategy. In a market defined by volatility, our results underscore that our business is not only enduring but strengthening—built to perform through cycles and to compound value for shareholders.”
In the first quarter of 2026, gross earnings increased by 26.8% year-on-year to ₦942.0 billion, while profit before tax rose by 72.2% to ₦321.1 billion—among the strongest quarterly PBT outcomes in the Nigerian banking industry. This strong rebound follows the deliberate actions taken in 2025 to comprehensively de-risk our balance sheet, including adequately provisioning for systemic impaired and non-performing loans. With these legacy issues addressed decisively, we have strengthened the quality of our earnings and positioned the Group on a much stronger foundation for sustained growth.
Our Q1 results reflect our continued focus on enhancing revenue generation, improving operational efficiency, elevating governance standards, and applying rigorous risk management and capital allocation discipline. We are pleased by the sustained strength of our core banking franchise, the increased contribution from non-interest income streams, and meaningful progress in our digital transformation and financial inclusion programmes—collectively supporting a more resilient and diversified earnings profile.
Beyond the headline numbers, we remain committed to preserving balance sheet strength, deepening prudent risk management, and upholding the highest standards of corporate governance. We also continue to demonstrate industry leadership in resolving legacy delinquent borrower exposures, with notable progress in asset recoveries, particularly from oil & gas obligors. In Q1, 2026, approximately ₦19 billion recoveries were recorded, reinforcing our confidence in further recoveries over time. These actions protect asset quality, sustain a strong capital position, and reinforce our capacity to fund growth responsibly across both banking and non-banking platforms.
Looking ahead, this strong start to the year reinforces our confidence in the earnings power of the FirstHoldCo franchise and our ability to generate enduring value for all stakeholders. We will sustain momentum by continuing to grow quality earnings, capturing emerging opportunities in Nigeria’s evolving financial services landscape, and translating our scale, governance, and execution discipline into superior shareholder returns in 2026 and beyond.”
