FirstHoldCo posts ₦911.2bn profit before tax in nine months

FirstHoldCo Plc, the parent company of FirstBank, reported a profit before tax of ₦911.2 billion for the first nine months of 2026, up 60.8% from the same period last year. Profit after tax rose 65.1% to ₦744.5 billion.

Gross earnings grew 8.8% to ₦2.87 trillion, meaning profit grew much faster than income. The group said the results show it is moving from repairing its balance sheet towards a stronger, better-capitalised growth phase.

For ordinary Nigerians, the numbers matter for two reasons: the bank's health affects lending and branch services, and the group's dividend policy affects what shareholders, including many small local investors, eventually receive.

Where the money came from

Income outside traditional lending did much of the work. Non-interest income jumped 143.5% to ₦722.9 billion, helped by a 48.1% rise in fees and commissions to ₦316.4 billion. The group linked this to electronic banking, funds transfers and credit-related services.

Costs fell even as income rose. Operating expenses dropped 8.1% to ₦866.6 billion, pushing the cost-to-income ratio down to 43.7% from 52.4%. The group noted this came in an economy with inflation at 15.39%.

Net interest income, however, fell 16.0% to ₦1.26 trillion, and the net interest margin slipped to 8.7% from 11.3%. The cost of funds improved to 4.5% from 4.9%.

Loans, capital and dividends

Total assets rose 18.1% from December 2025 to ₦32.20 trillion, while customer deposits grew 21.3% to ₦22.91 trillion. Lending grew more slowly, with net customer loans up 4.8% to ₦9.39 trillion.

FirstBank's capital adequacy ratio improved to 18.6% in September 2026 from 16.7% at half-year. The group's non-performing loan ratio fell to 10.4% from 13.9% at half-year, though it remains above the level management wants. Impairment charges dropped 28.3% to ₦207.1 billion, and recoveries reached ₦94.3 billion.

The group said it holds more than ₦850 billion in regulatory risk reserves, which it described as a buffer against credit risks.

Commercial banking remains the main earner, with gross earnings of ₦2.70 trillion and profit before tax of ₦784.7 billion. Investment banking and asset management grew faster: gross earnings rose 85.5% to ₦120.1 billion and profit before tax jumped 133.6% to ₦85.7 billion.

The board has approved a minimum annual dividend of 60% of profit after tax, starting with the 2027 accounts. The group said the later start gives it room to build capital and clean up its loan book first. The payout is subject to distributable reserves, regulatory approvals and financial conditions.

As of 23 October 2026, FirstHoldCo shares had gained 200.84% since the start of the year, which the group said was the highest total return among its banking peers.

What happens next: Investors will watch whether the loan ratio keeps falling towards single digits, whether margins recover, and how the group handles the remaining problem loans before the higher dividend begins.