First HoldCo posts record N653.5bn pre-tax profit

First HoldCo Plc has delivered its strongest half-year financial performance on record, posting a pre-tax profit of N653.54 billion for the six months ended June 30, 2026, an 83.5 per cent increase from the N356.15 billion reported in the corresponding period of 2025.

The impressive earnings lifted investor sentiment, with the company’s shares surging 10 per cent during mid-day trading to N105.50 following the release of its audited half-year results.

The financial holding company also reported a second-quarter pre-tax profit of N332.42 billion, representing a 3.5 per cent increase over the estimated N321.12 billion recorded in the first quarter of 2026 and a remarkable 95.9 per cent jump from the N169.67 billion posted in the second quarter of last year.

Reacting to the performance, Chairman of First HoldCo Plc, Femi Otedola, described the results as a major milestone in the Group’s transformation journey.

According to him, the first half of 2026 represents an important turning point for the institution, noting that the Board’s strategic decisions to recapitalise and strengthen the business are beginning to yield tangible results.

He said the stronger balance sheet and improved profitability demonstrate that the reforms undertaken over the past year have positioned the Group for sustainable growth.

Analysis of the financial statements showed that the impressive earnings were largely driven by robust growth in non-interest income despite a slight moderation in interest income.

Fee and commission income rose to N214.66 billion from N168.57 billion recorded a year earlier, while gains from investment securities, fair-value financial instruments and other operating income all recorded substantial increases.

Other operating income witnessed one of the strongest improvements, rising sharply to N136.67 billion from N13.15 billion in the corresponding period of 2025.

Net interest income after impairment charges also increased to N762.99 billion from N719.43 billion, supported by a significant decline in loan impairment charges.

Credit impairment losses fell to N116.14 billion from N185.40 billion, reflecting improved asset quality and stronger loan performance across the Group’s portfolio.

Although operating expenses increased amid persistent inflationary pressures, personnel costs rose to N180.26 billion while other operating expenses climbed to N384.55 billion, the growth in operating income more than offset the higher costs, resulting in an 83 per cent increase in operating profit.