First HoldCo’s profit nearly doubles on stronger trading income, lower loan losses

First HoldCo Plc almost doubled its profit after tax in the first half of 2026 as improved asset quality, lower credit losses, and a sharp rise in trading gains offset softer interest income in a high-rate environment.

The financial services group reported a profit after tax of N526.13 billion for the six months ended June 30, 2026, representing an 81.6 percent increase from N289.77 billion recorded in the corresponding period of 2025. Profit attributable to shareholders surged to N522.66 billion from N286.40 billion a year earlier.

The stronger bottom line came despite a 2.84 percent decline in net interest income, as the lender benefited from lower impairment charges, robust fee income, higher investment gains, and a significant jump in other operating income.

Profit before tax rose by 83.5 percent to N653.54 billion, up from N356.15 billion in the first half of last year, while operating profit increased by 83.2 percent to N651.98 billion.

Net interest income declined to N879.13 billion from N904.83 billion, reflecting pressure on interest margins as interest income fell to N1.40 trillion from N1.44 trillion, while interest expense eased only slightly to N518.92 billion.

A key driver of earnings was a substantial reduction in credit losses. Impairment charges fell 37.4 percent to N116.14 billion, compared with N185.40 billion in the corresponding period of 2025, lifting net interest income after impairment to N762.99 billion from N719.43 billion.

The group also recorded stronger growth in non-interest revenue. Net fee and commission income rose 28.7 percent to N178.51 billion, supported by higher transaction volumes and banking service charges. Net gains from financial instruments measured at fair value through profit or loss swung to N65.79 billion, compared with a N53.67 billion loss a year earlier.

Net gains on the sale of investment securities surged to N60.62 billion, more than eight times the N7.45 billion recorded in the corresponding period, while other operating income jumped to N136.67 billion from N13.15 billion.

Foreign exchange gains, however, moderated significantly to N44.15 billion, down from N73.54 billion in the previous year, suggesting reduced reliance on FX revaluation gains following greater exchange-rate stability.

Operating expenses continued to rise as the bank expanded operations and adjusted to higher inflationary costs. Personnel expenses increased to N180.26 billion from N170.94 billion, while other operating expenses rose 11 percent to N384.55 billion. Depreciation and amortisation also climbed to N43.28 billion.

On the balance sheet, total assets expanded by 12.5 percent to N30.65 trillion as of June 30, 2026, from N27.25 trillion at the end of December 2025.

Customer deposits increased by more than 16 percent to N21.93 trillion, highlighting continued deposit mobilisation despite an intensely competitive funding environment. Loans and advances to customers also grew 6.1 percent to N9.51 trillion, while investment securities rose sharply to N9.23 trillion from N6.97 trillion, reflecting increased investment activity.

Shareholders’ funds strengthened to N3.63 trillion, up from N3.30 trillion at the end of 2025, supported largely by retained earnings, which more than doubled to N921.72 billion from N401.80 billion.

The lender’s cash flow also improved considerably. Net cash generated from operating activities stood at N502.01 billion, reversing a N1.01 trillion cash outflow recorded in the corresponding period of 2025, although increased investment purchases led to higher cash used in investing activities.

Based on the share price information provided, First HoldCo’s shares rose 10 percent to ₦105.50 following the release of the results.

The stock has returned 111 percent over the past six months and 210.75 percent over the past year, reflecting strong investor confidence in the group’s improving financial performance.

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.