First HoldCo Plc’s 9 months 2026 performance marks an important transition: the Group is moving from balance sheet repair toward a more resilient, capital-supported growth phase. The headline is compelling — profit before tax rose 60.8% year on year to N911.2 billion, while profit after tax advanced 65.1% to N744.5 billion; importantly, the quality of this growth is also improving.
First, earnings have broadened year on year and beyond the traditional interest income. Second, operating discipline has improved efficiency. Third, stronger capital and better asset-quality indicators are increasing the Group’s capacity to absorb risk and pursue selective growth. These factors support a more durable earnings profile and a stronger long-term shareholder proposition.
Profitability continues to strengthen
Gross earnings increased 8.8% to N2.87 trillion, but profitability expanded faster: profit before tax reached N911.2 billion and profit after tax reached N744.5 billion. Post-tax return on average equity improved to 27.7% from 24.7% in the previous year, while return on average assets rose to 3.3% from 2.6% in 9M 2025 showing that balance sheet growth is generating stronger returns.
This growth was supported by a more diversified revenue mix. Non-interest income surged 143.5% to N722.9 billion, supported by a 48.1% increase in net fee and commission income to N316.4 billion. Transaction-led revenues, including electronic banking, funds transfers and credit-related services and other non-interest income contributions are giving the Group more diversified avenues for earnings growth.
Operating leverage is becoming visible
Operating income rose 10.3% even as operating expenses declined 8.1% to N866.6 billion. The resulting cost-to-income ratio of 43.7%, down from 52.4%, is a strong indicator of improving operating leverage and cost discipline particularly in a 15.39% inflationary environment. The result suggests that management is not relying on balance-sheet expansion alone; it is extracting more value from the franchise while containing the cost base.
Core margins present a compelling earnings-upside opportunity. Although net interest income moderated by 16.0% to N1.26 trillion and net interest margin adjusted to 8.7% from 11.3% amid softer asset yields, the improvement in cost of funds to 4.5% from 4.9% demonstrates effective funding discipline and provides a strong foundation for margin recovery. Enhanced risk-adjusted pricing and a more efficient funding mix offer credible levers for margin expansion and sustainable returns, while maintaining rigorous credit standards and asset quality.
A balance sheet with greater strategic capacity
The balance sheet provides greater capacity for disciplined growth. Total assets increased 18.1% from year-end 2025 to N32.20 trillion, while customer deposits grew 21.3% to N22.91 trillion. Group equity rose 17.0% to N3.86 trillion. In contrast, net customer loans expanded by a deliberate and measured 4.8% to N9.39 trillion. This combination of strong funding growth, firmer equity and selective lending reflects disciplined capital deployment rather than indiscriminate risk-taking.
FirstBank’s capital adequacy ratio improved to 18.6% at September 2026 from 16.7% at half-year. The stronger capital buffer increases resilience supports regulatory confidence and provides greater flexibility to finance attractive opportunities. Importantly, capital is strengthening while profitability is accelerating, improving the Group’s capacity to compound value internally.
Asset-quality repair is gaining traction
Asset-quality repair is also advancing. The Group’s non-performing loan ratio declined to 10.4% from 13.9% at H1 2026 while NPL coverage, including regulatory reserves, increased to 98.8%. Impairment charges declined 28.3% to N207.1 billion and recoveries reached N94.3 billion.
These figures show broad-based progress: stronger coverage, reduced impairment charges and meaningful recoveries to date. Although the NPL ratio remains above management’s desired level, the downward trajectory improves protection and loss-absorption capacity.
To further strengthen asset quality by year-end, management could combine targeted restructuring of viable exposures, negotiated settlements and intensified recoveries with ongoing legal actions. These asset-quality measures are supported by more than N850 billion already held in regulatory risk reserves, providing a substantial prudential buffer against identified credit risks. Accordingly, subject to applicable accounting and regulatory treatment, additional impairment charges recognised in the books would be broadly capital-neutral, enabling management to accelerate the resolution or write-off of fully provided loans with limited recovery prospects without materially weakening regulatory capital, while recovery efforts continue. These measures should further reduce the NPL ratio, reinforce coverage and underscore the strength of the balance sheet.
Diversification strengthens the earnings growth outlook
Commercial Banking remains the Group’s principal earnings subsidiary, generating gross earnings of N2.70 trillion and profit before tax of N784.7 billion. Its scale, deposit franchise and broad customer relationships underpin recurring revenue.
Alongside this core franchise, Investment Banking and Asset Management is becoming more significant. The segment generated gross earnings of N120.1 billion, up 85.5%, and profit before tax of N85.7 billion, up 133.6%. This high-growth, capital-light platform broadens the Group’s exposure to advisory, asset management, trusteeship, brokerage and securities activities, reducing reliance on traditional banking spreads.
Why the investment case is strengthening
FirstHoldCo’s investment case is increasingly persuasive because improvement is visible across several reinforcing dimensions: faster earnings growth, better operating efficiency, expanding transaction-led revenues, stronger capital, disciplined loan growth and an improving asset quality position. These are not isolated gains; they describe a franchise becoming more resilient and better positioned to convert scale into sustainable returns.
The Group is well positioned to unlock the next phase of value creation by building on its current momentum. Continued progress toward a single-digit NPL ratio, sustained coverage, recovery in net interest margin, disciplined deployment of deposits, and greater fee income contribution provide clear pathways to stronger, more resilient earnings. Consistent execution should improve earnings quality and deepen market confidence.
Enhanced dividend policy reinforces the shareholder-value proposition
The market is already recognising this stronger proposition: as of 23 October 2026, FirstHoldCo’s 200.84% year-to-date share-price gain had delivered the highest total shareholder return in 2026 among its banking peers, signaling strong investor confidence in the Group’s earnings momentum and outlook.
Reinforcing these market gains, FirstHoldCo earlier this year reaffirmed its commitment to shareholder returns through an enhanced dividend policy. Under the policy, the Board approved a minimum annual distribution of 60% of profit after tax, commencing with the 2027 accounts. The policy gives shareholders a clearer route to participate in earnings growth and signals confidence in the Group’s profitability, capital and cash-generation.
The timing is strategically important. Beginning with the 2027 accounts allows FirstHoldCo to consolidate capital strength, further improve asset-quality and fund disciplined growth before the higher payout takes effect. Subject to distributable reserves, regulatory approvals and prevailing financial conditions, the policy offers a credible path to stronger shareholder returns.
Outlook: Disciplined growth with meaningful optionality
FirstHoldCo enters the final quarter of 2026 with a stronger balance sheet, improving credit metrics and enhanced operating leverage. Its N22.91 trillion deposit base provides substantial funding capacity, while the improved capital position creates room for selective expansion. Targeted investment in technology, innovation and customer experience can deepen transaction volumes and strengthen the durability of non-interest revenue.
The investment story therefore extends beyond stronger earnings. Capital strength, franchise depth, cost discipline and diversified capabilities make performance more sustainable. Margin pressure and the remaining NPL stock still require attention, but each also presents a defined opportunity for improvement.
Overall, the 9Months 2026 results show a Group regaining strategic flexibility and converting reform into measurable progress. Continued improvement in asset quality, margin recovery and disciplined capital allocation provide a credible path to resilient earnings and durable long-term value