Quarter Under Preview: First Quarter 2026
Current Share Price: N70:00
Price At Release Date: N61.66
Latest Final Dividend: NIL
Latest Interim Dividend: NIL
Estimated Beta Value: 0.99x
Estimated Intrinsic Value: N59.87
Rating: BUY/HOLD for long-term investors
Analyst: Jeariogbe Tunde Segun
The Company
First Holding Company Plc, formerly known as FBN Holdings Plc, traces its origin to 1894 with the establishment of the Bank of British West Africa (BBWA) in Lagos by Sir Alfred Jones. The institution later evolved into First Bank of Nigeria and became one of the pioneers of modern banking in Nigeria. In 2012, following regulatory reforms introduced by the Central Bank of Nigeria (CBN), the Group adopted a holding company structure under the name: FBN Holdings Plc, separating the commercial banking operations from its non-banking financial services. In 2025, the company rebranded to First HoldCo Plc to unify its subsidiaries under a stronger and more modern corporate identity while preserving the legacy of the “First” brand.
First HoldCo Plc operates as a diversified financial services group with several business segments across Africa and selected international markets. Its core segment is Commercial Banking, led by First Bank of Nigeria Limited which is supported by subsidiaries in other African countries as well as representative offices in London, Paris, and Beijing. The Group also operates in Asset Management, Capital Markets, Securities Trading, Trusteeship, and Insurance Brokerage through subsidiaries such as First Asset Management, First Trustees, First Securities Brokers, and First Insurance Brokers Limited. These business segments enable the Group to provide banking, investment, advisory, custodial, and risk management services to retail, corporate, and institutional customers.
In recent years, First HoldCo Plc has intensified efforts to strengthen its capital base in response to the recapitalization directive of the Central Bank of Nigeria (CBN) for banks operating within the country. The Group embarked on capital raising initiatives, including private placements and strategic balance sheet restructuring, to meet the new ₦500 billion minimum capital requirement for commercial banks with international operations. By early 2026, reports indicated that FirstBank, the group’s flagship subsidiary, had successfully met the recapitalisation threshold ahead of the regulatory deadline. The recapitalisation exercise is expected to improve the group’s financial stability, support future expansion, and position it competitively within Nigeria’s evolving banking industry.
The Released Numbers
First HoldCo Plc recorded a strong financial performance in 2026 as reflected in its Statement of Comprehensive Income. Gross earnings increased significantly by 26.78% from ₦742.94 billion in 2025 to ₦941.89 billion in 2026, driven largely by growth in interest income which rose by 12.66% to ₦704.45 billion, while interest expenses increased marginally by 2.16% to ₦265.70 billion. Consequently, net interest income improved by 20.14% to ₦438.76 billion, indicating stronger earnings capacity and improved management of funding costs during the period.
Operating efficiency also improved despite rising costs. Operating expenses (OPEX) increased by 20.98% from ₦228.91 billion to ₦276.94 billion, while depreciation charges grew by 26.11% to ₦20.66 billion, reflecting ongoing investments in infrastructure and technology. However, the Group achieved a remarkable 72.20% increase in Profit Before Tax (PBT) from ₦186.48 billion in 2025 to ₦321.12 billion in 2026. This strong earnings growth highlights the company’s ability to expand revenue faster than operating costs.
Furthermore, Profit After Tax (PAT) rose substantially by 56.52% from ₦171.10 billion in 2025 to ₦267.80 billion in 2026 despite a higher tax expense of ₦53.26 billion. Total comprehensive income also showed a dramatic turnaround, increasing from a loss position of ₦62.16 billion in 2025 to a positive ₦170.20 billion in 2026, representing a 373.82% improvement. Overall, the results reflect stronger profit level, improved operational performance, and enhanced shareholder value for First HoldCo Plc during the first three months of the 2026 financial year.
First HoldCo Plc’s Statement of Financial Position for 2026 reflects moderate growth in the Group’s balance sheet and stronger shareholders’ funds. Total assets increased slightly by 1.35% from ₦26.52 trillion in 2025 to ₦26.88 trillion in 2026, indicating continued expansion in the company’s financial base. At the same time, total liabilities declined marginally by 1.58% to ₦23.41 trillion, suggesting improved liability management and a stronger capital structure. As a result, net assets rose significantly by 26.78% from ₦2.74 trillion to ₦3.47 trillion, reflecting improved shareholder value and retained profitability.
The Group also recorded substantial 130.29% growth in Property, Plant and Equipment (PPE) from ₦228.16 billion in 2025Q1 to ₦525.43 billion in the corresponding period of 2026. This indicates increased investment in infrastructure, technology, and operational expansion. However, retained earnings declined by 47.88% from ₦1.28 trillion to ₦667.95 billion, which may be attributable to dividend payments, reserves adjustments, or other appropriations during the quarter. Despite the reduction in retained earnings, the company maintained a stronger equity position overall.
In terms of banking operations, customer deposits increased by 5.17% from ₦19.88 trillion in 2025 to ₦20.91 trillion in 2026Q1, demonstrating sustained customer confidence and liquidity growth. On the other hand, total loans and advances declined slightly by 3.79% to ₦12.70 trillion from ₦13.21 trillion in the 2026 first quarter. The reduction in loan exposure may reflect a more cautious lending strategy aimed at improving asset quality and reducing credit risk amid the prevailing economic uncertainties. Overall, the financial position shows that First HoldCo Plc remains financially stable, well-capitalised, and strategically positioned for medium to long-term growth.
Financial Strength/Solvency Ratio
First HoldCo Plc’s financial strength and solvency ratios for 2026Q1 indicate a slight improvement in its capital structure not minding that the group remains highly leveraged, a common feature in the banking industry. Debt ratio declined marginally from 89.68% in 2025Q1 to 87.08% in 2026, representing a 2.89% improvement, suggesting that a slightly lower proportion of the company’s assets was financed through liabilities during the quarter. Similarly, Total Debt-to-Equity Ratio decreased from 8.69 times to 6.74 times, reflecting a 22.37% reduction in leverage and indicating stronger shareholders’ equity support relative to total debt obligations.
Furthermore, the equity ratio improved from 10.32% in 2025 to 12.92% in 2026, representing a 25.09% growth, indicating that a larger portion of the group’s assets in the period under review was financed by shareholders’ funds, thereby enhancing financial stability and solvency. The company also recorded a beta value of 0.99, implying that its stock price volatility is closely aligned with the overall market movement. Viewed holistically, the solvency indicators suggest that First HoldCo Plc strengthened its capital position in 2026 through improved equity backing and reduced dependence on debt financing.
Profitability Ratios
First HoldCo Plc recorded improved profitability ratios in 2026, demonstrating stronger earnings performance and better operational efficiency. The Group’s EBIT margin increased from 62.31% to 64.49%, representing a 3.50% growth. This shows that the company generated higher operating earnings relative to revenue, reflecting improved cost management and stronger income generation. In addition, the pre-tax margin rose significantly from 25.10% to 34.09%, a 35.83% jump, which further highlights the company’s enhanced ability to convert revenue into profit before taxation.
The effective tax rate increased from 10.23% to 16.59%, representing a 62.06% rise. This suggests that the company incurred a higher tax burden due to increased profitability and taxable earnings during the period. Meanwhile, Interest Expense to Gross Earnings (IE to GE) ratio fell from 35.01% to 28.21%, reflecting a 19.42% reduction, indicating that a lower proportion of the group’s gross earnings was consumed by interest expenses, suggesting better funding efficiency and improved management of borrowing costs.
Furthermore, shareholders’ returns and asset utilisation improved during the quarter. Return on Equity (ROE) increased from 6.25% to 7.71%, representing a 23.46% growth, showing improved returns generated on shareholders’ investments. Similarly, Return on Assets (ROA) rose from 0.65% to 1.00%, representing a 54.44% increase, which shows enhanced efficiency in the utilization of the company’s asset base to generate profits. Overall, the profitability indicators reveal that First HoldCo Plc achieved stronger financial performance, improved operational efficiency, and better value creation for shareholders in the 2026Q1.
Efficiency Ratios
First HoldCo Plc’s efficiency ratios for 2026Q1 indicate improved operational performance and better utilization of resources during the period. The Operating Expenses to Gross Earnings (OPEX to GE) ratio declined from 30.81% to 29.40% in 2026, representing a 4.57% improvement. This suggests that the company managed its operating costs more efficiently relative to its gross earnings. In addition, the Gross Earnings to Total Assets (GE to TA) ratio increased from 2.80% to 3.50%, reflecting a 25.09% rise and indicating improved asset utilization in generating revenue.
Furthermore, the Loan-to-Deposit Ratio (LDR) declined from 66.41% in 2025 to 60.75% in 2026, representing an 8.52% reduction, a pointer to the more cautious lending approach and improved liquidity position, as a smaller proportion of customer deposits was converted into loans and advances. Meanwhile, Capital Expenditure per Share (Capex/Share) increased significantly from 1.18 to 6.69, representing a 466.40% growth. This substantial increase indicates stronger investment in infrastructure, technology, and expansion projects aimed at supporting long-term operational efficiency and future growth.
Investment/Valuation Ratios
First HoldCo Plc’s investment and valuation ratios for 2026 indicate improved market valuation and stronger returns to shareholders. Earnings Per Share (EPS) increased significantly from 4.09 in 2025Q1 to 6.02 in the corresponding period of this year, representing a 47.45% growth, which reflects the company’s improved profitability and enhanced capacity to generate earnings attributable to each ordinary share. In addition, Total Comprehensive Income Per Share (TCIP/Share) improved remarkably from a negative value of -1.48 in 2025 to 3.83 in 2026, representing a 357.95% turnaround. This substantial improvement indicates stronger comprehensive earnings performance and recovery from the previous quarter’s loss position.
The Price-to-Earnings (P/E) ratio increased from 1.50 times to 2.55 times, representing a 70.04% rise, suggestive of the improved investor confidence and stronger market valuation of the company’s earnings potential. However, the earnings yield dropped from 16.64% to 9.79%, representing a 41.19% decrease. The decline in earnings yield may indicate that the market price of the company’s shares increased at a faster rate than earnings growth, thereby reducing the return generated per unit of share price.
Furthermore, Book Value per Share (BV/Share) rose from 65.39 to 78.09, representing a 19.43% increase, reflecting growth in shareholders’ equity and stronger intrinsic value of the company. Similarly, the Price-to-Book Value (PBV) ratio increased significantly from 0.38 to 0.79, representing a 109.92% growth. Despite this increase, the fact that the PBV ratio remained below 1.0 suggests that the company’s shares may still be undervalued relative to their book value. Overall, the investment and valuation ratios indicate improved profitability, enhanced shareholder value, and stronger market perception of First HoldCo Plc in 2026.
Investment Recommendations/Rating
The financials of First HoldCo Plc show strong improvement across profitability, solvency, efficiency, and valuation indicators in the first quarter of 2026, recording significant growth in gross earnings, profit before and after tax, Earnings Per Share, ROE, and ROA, in addition to improving its equity ratio and reducing leverage levels. The growth in customer deposits, stronger net assets position, and improved operational efficiency further confirms its financial stability and resilience. In addition, the progress towards recapitalisation strengthens the group’s long-term sustainability and ability to compete effectively within the Nigerian banking sector.
From an investment perspective, the company appears fundamentally attractive. The increase in EPS, book value per share, and profit margins suggests improved shareholder returns and earnings quality. Furthermore, the PBV ratio of 0.79 implies that the stock may still be trading below its intrinsic book value, which could present potential upside opportunities for long-term investors. Although earnings yield declined, and the Nigerian banking sector still faces macroeconomic and regulatory risks, First HoldCo Plc’s improving fundamentals, strong market presence, and recapitalisation progress make the stock relatively attractive for medium- to long-term investment.
Overall, the investment recommendation for First HoldCo Plc is BUY/HOLD for long-term investors. Existing investors may continue holding the stock in anticipation of further capital appreciation and dividend growth, while new investors should consider a gradual accumulation, especially during price pullbacks.
