First HoldCo Plc’s 9 months 2026 efficiency marks an necessary transition: the Group is transferring from steadiness sheet restore towards a extra resilient, capital-supported progress section. The headline is compelling — revenue earlier than tax rose 60.8% yr on yr to N911.2 billion, whereas revenue after tax superior 65.1% to N744.5 billion; importantly, the standard of this progress can be enhancing.
First, earnings have broadened yr on yr and past the standard curiosity revenue. Second, working self-discipline has improved effectivity. Third, stronger capital and higher asset-quality indicators are rising the Group’s capability to soak up threat and pursue selective progress. These elements help a extra sturdy earnings profile and a stronger long-term shareholder proposition.
Profitability continues to strengthen
Gross earnings elevated 8.8% to N2.87 trillion, however profitability expanded sooner: revenue earlier than tax reached N911.2 billion and revenue after tax reached N744.5 billion. Post-tax return on common fairness improved to 27.7% from 24.7% in the earlier yr, whereas return on common property rose to three.3% from 2.6% in 9M 2025 exhibiting that steadiness sheet progress is producing stronger returns.
This progress was supported by a extra diversified income combine. Non-interest revenue surged 143.5% to N722.9 billion, supported by a 48.1% enhance in web charge and fee revenue to N316.4 billion. Transaction-led revenues, together with digital banking, funds transfers and credit-related companies and different non-interest revenue contributions are giving the Group extra diversified avenues for earnings progress.
Operating leverage is turning into seen
Operating revenue rose 10.3% whilst working bills declined 8.1% to N866.6 billion. The ensuing cost-to-income ratio of 43.7%, down from 52.4%, is a robust indicator of enhancing working leverage and value self-discipline significantly in a 15.39% inflationary atmosphere. The end result means that administration is just not counting on balance-sheet enlargement alone; it’s extracting extra worth from the franchise whereas containing the fee base.
Core margins current a compelling earnings-upside alternative. Although web curiosity revenue moderated by 16.0% to N1.26 trillion and web curiosity margin adjusted to eight.7% from 11.3% amid softer asset yields, the development in value of funds to 4.5% from 4.9% demonstrates efficient funding self-discipline and offers a robust basis for margin restoration. Enhanced risk-adjusted pricing and a extra environment friendly funding combine supply credible levers for margin enlargement and sustainable returns, whereas sustaining rigorous credit score requirements and asset high quality.
A steadiness sheet with better strategic capability
The steadiness sheet offers better capability for disciplined progress. Total property elevated 18.1% from year-end 2025 to N32.20 trillion, whereas buyer deposits grew 21.3% to N22.91 trillion. Group fairness rose 17.0% to N3.86 trillion. In distinction, web buyer loans expanded by a deliberate and measured 4.8% to N9.39 trillion. This mixture of robust funding progress, firmer fairness and selective lending displays disciplined capital deployment slightly than indiscriminate risk-taking.
FirstFinancial institution’s capital adequacy ratio improved to 18.6% at September 2026 from 16.7% at half-year. The stronger capital buffer will increase resilience helps regulatory confidence and offers better flexibility to finance enticing alternatives. (*9*), capital is strengthening whereas profitability is accelerating, enhancing the Group’s capability to compound worth internally.
Asset-quality restore is gaining traction
Asset-quality restore can be advancing. The Group’s non-performing mortgage ratio declined to 10.4% from 13.9% at H1 2026 whereas NPL protection, together with regulatory reserves, elevated to 98.8%. Impairment prices declined 28.3% to N207.1 billion and recoveries reached N94.3 billion.
These figures present broad-based progress: stronger protection, diminished impairment prices and significant recoveries thus far. Although the NPL ratio stays above administration’s desired stage, the downward trajectory improves safety and loss-absorption capability.
To additional strengthen asset high quality by year-end, administration might mix focused restructuring of viable exposures, negotiated settlements and intensified recoveries with ongoing authorized actions. These asset-quality measures are supported by greater than N850 billion already held in regulatory threat reserves, offering a considerable prudential buffer towards recognized credit score dangers. Accordingly, topic to relevant accounting and regulatory remedy, extra impairment prices recognised in the books can be broadly capital-neutral, enabling administration to speed up the decision or write-off of absolutely offered loans with restricted restoration prospects with out materially weakening regulatory capital, whereas restoration efforts proceed. These measures ought to additional cut back the NPL ratio, reinforce protection and underscore the power of the steadiness sheet.
Diversification strengthens the earnings progress outlook
Commercial Banking stays the Group’s principal earnings subsidiary, producing gross earnings of N2.70 trillion and revenue earlier than tax of N784.7 billion. Its scale, deposit franchise and broad buyer relationships underpin recurring income.
Alongside this core franchise, Investment Banking and Asset Management is turning into extra important. The section generated gross earnings of N120.1 billion, up 85.5%, and revenue earlier than tax of N85.7 billion, up 133.6%. This high-growth, capital-light platform broadens the Group’s publicity to advisory, asset administration, trusteeship, brokerage and securities actions, decreasing reliance on conventional banking spreads.
Why the funding case is strengthening
FirstHoldCo’s funding case is more and more persuasive as a result of enchancment is seen throughout a number of reinforcing dimensions: sooner earnings progress, higher working effectivity, increasing transaction-led revenues, stronger capital, disciplined mortgage progress and an enhancing asset high quality place. These aren’t remoted positive aspects; they describe a franchise turning into extra resilient and higher positioned to transform scale into sustainable returns.
The Group is nicely positioned to unlock the subsequent section of worth creation by constructing on its present momentum. Continued progress towards a single-digit NPL ratio, sustained protection, restoration in web curiosity margin, disciplined deployment of deposits, and better charge revenue contribution present clear pathways to stronger, extra resilient earnings. Consistent execution ought to enhance earnings high quality and deepen market confidence.
Enhanced dividend coverage 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 achieve had delivered the very best complete shareholder return in 2026 amongst its banking friends, signaling robust investor confidence in the Group’s earnings momentum and outlook.
Reinforcing these market positive aspects, FirstHoldCo earlier this yr reaffirmed its dedication to shareholder returns via an enhanced dividend coverage. Under the coverage, the Board permitted a minimal annual distribution of 60% of revenue after tax, commencing with the 2027 accounts. The coverage provides shareholders a clearer path to take part in earnings progress and indicators confidence in the Group’s profitability, capital and cash-generation.
The timing is strategically necessary. Beginning with the 2027 accounts permits FirstHoldCo to consolidate capital power, additional enhance asset-quality and fund disciplined progress earlier than the upper payout takes impact. Subject to distributable reserves, regulatory approvals and prevailing monetary situations, the coverage provides a reputable path to stronger shareholder returns.
Outlook: Disciplined progress with significant optionality
FirstHoldCo enters the ultimate quarter of 2026 with a stronger steadiness sheet, enhancing credit score metrics and enhanced working leverage. Its N22.91 trillion deposit base offers substantial funding capability, whereas the improved capital place creates room for selective enlargement. Targeted funding in know-how, innovation and buyer expertise can deepen transaction volumes and strengthen the sturdiness of non-interest income.
The funding story subsequently extends past stronger earnings. Capital power, franchise depth, value self-discipline and diversified capabilities make efficiency extra sustainable. Margin stress and the remaining NPL inventory nonetheless require consideration, however every additionally presents an outlined alternative for enchancment.
Overall, the 9Months 2026 outcomes present a Group regaining strategic flexibility and changing reform into measurable progress. Continued enchancment in asset high quality, margin restoration and disciplined capital allocation present a reputable path to resilient earnings and sturdy long-term worth
