First HoldCo posts record ₦653.5bn H1 profit as shares hit 10% gain

By Reporter

First HoldCo Plc has delivered its strongest half-year financial performance on record, reporting a profit before tax of ₦653.54 billion for the six months ended June 30, an 83.5 per cent increase from ₦356.15 billion recorded in the corresponding period of 2025.

The impressive earnings triggered a positive reaction on the Nigerian Exchange, with the company’s shares rising 10 per cent during trading to ₦105.50, reflecting growing investor confidence in the Group’s financial outlook.

For the second quarter alone, the financial holding company posted a pre-tax profit of ₦332.42 billion, representing a 3.5 per cent increase over the ₦321.12 billion recorded in the first quarter and a 95.9 per cent jump from ₦169.67 billion reported in the second quarter of 2025.

Despite a slight moderation in interest income, First HoldCo’s earnings were buoyed by robust growth in non-interest revenue and lower impairment charges.

Interest income declined by 2.74 per cent to ₦1.40 trillion, while net interest income eased marginally to ₦879.13 billion.

However, net fee and commission income rose 28.7 per cent to ₦178.51 billion, reflecting stronger transaction volumes and increased banking activity.

Operating profit surged 83.2 per cent to ₦651.98 billion, while profit after tax climbed 81.6 per cent to ₦526.13 billion from ₦289.77 billion a year earlier.

Earnings per share almost doubled to ₦11.74, compared with ₦6.84 in the corresponding period last year.

The Group also recorded healthy growth across key balance sheet indicators.

Loans and advances to customers increased to ₦9.51 trillion from ₦8.97 trillion at the end of December 2025, while customer deposits expanded 16.2 per cent to ₦21.93 trillion.

Total assets rose to ₦30.65 trillion, up from ₦27.25 trillion six months earlier, reinforcing the Group’s expanding market position.

Cash and balances with central banks remained broadly stable at ₦5.07 trillion, while total equity improved significantly to ₦3.63 trillion, supported by strong earnings retention.

Borrowings declined sharply to ₦964.83 billion, compared with ₦1.94 trillion at the end of 2025, reflecting a stronger funding and capital position.

Group Managing Director, Wale Oyedeji, said the results underscore the resilience of the institution and the success of the strategic reforms implemented over the past year.

“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,” he said.

According to Oyedeji, management has deliberately focused on strengthening the balance sheet, rebuilding capital, improving asset quality and enhancing operational efficiency.

“Those efforts are delivering meaningful outcomes and creating a stronger foundation for sustainable long-term growth,” he added.

The Group’s strong earnings were largely supported by growth in non-interest income.

Fee and commission income increased to ₦214.66 billion from ₦168.57 billion, while gains from investment securities, financial instruments measured at fair value through profit or loss and other operating income all recorded substantial improvements.

Other operating income rose sharply to ₦136.67 billion, compared with ₦13.15 billion in the corresponding period of 2025, providing a significant boost to overall profitability.

Meanwhile, net interest income after impairment charges improved to ₦762.99 billion from ₦719.43 billion, aided by a sharp reduction in credit loss provisions.

Impairment charges declined to ₦116.14 billion from ₦185.40 billion, indicating stronger asset quality and lower credit risk across the loan portfolio.

Although operating expenses increased due to inflationary pressures, with personnel costs rising to ₦180.26 billion and other operating expenses reaching ₦384.55 billion, the growth in operating income more than compensated for the higher costs.

The record financial performance was well received by investors, with First HoldCo’s share price climbing 10 per cent to ₦105.50 after the results were released.

The stock has returned approximately 111 per cent over the past six months and 210.75 per cent over the past year, making it one of the Nigerian Exchange’s strongest-performing banking stocks.

The company did not declare an interim dividend for the six months ended June 30.