First HoldCo Plc has expanded its deposit franchise and strengthened its balance sheet, providing the financial holding company with a stronger earnings base as it operates within a high-cost operating environment.
The Group’s customer deposits rose 16.16 percent to N21.93 trillion in the six months ended June 30, 2026, from N18.88 trillion at the end of 2025, while total assets increased to N30.65 trillion from N27.25 trillion.
The balance sheet expansion came alongside an improvement in profitability, with profit before tax rising 83.5 percent year-on-year to N653.54 billion from N356.15 billion in the corresponding period of 2025.
Profit after tax also increased 81.57 percent to N526.13 billion, while earnings per share rose to N11.74 from N6.84.
The results point to a development in the group’s earnings mix, with growth in fee-based income and other operating income helping to offset a moderation in interest income.
Interest income declined 2.74 percent to N1.40 trillion from N1.44 trillion a year earlier. However, net fee and commission income increased 28.71 percent to N178.51 billion from N138.70 billion.
Fee and commission income rose to N214.66 billion from N168.57 billion, while other operating income surged to N136.67 billion from N13.15 billion, supported by gains on investment securities and financial instruments measured at fair value through profit or loss. Operating profit consequently climbed 83.15 percent to N651.98 billion.
First HoldCo’s credit profile also improved during the period. Impairment charges for credit losses fell to N116.14 billion from N185.40 billion in the first half of 2025, indicating lower pressure from credit-related losses and contributing significantly to the improvement in bottom-line performance.
The group’s loan book expanded more moderately than deposits, with loans and advances to customers rising 6.1 percent to N9.51 trillion.
This implies that deposit mobilisation outpaced loan growth during the period, providing the Group with greater liquidity headroom while potentially supporting balance sheet flexibility.
Cash and balances with central banks stood at N5.07 trillion.
The group also recorded a significant reduction in borrowings, which fell to N964.83 billion from N1.94 trillion at the end of December 2025. At the same time, total equity rose to N3.63 trillion, supported by retained earnings.
The stronger capital position and lower borrowings point to an improvement in balance sheet resilience, even as the Group continued to incur higher operating costs.
Personnel expenses rose to N180.26 billion, while other operating expenses increased to N384.55 billion. However, the increase in operating income more than offset the cost pressures.
The second quarter provided further evidence of the group’s earnings momentum. Pre-tax profit rose to N332.42 billion in the three months ended June 30, 2026, from N321.12 billion in the first quarter and N169.67 billion in the second quarter of 2025.
The quarterly performance shows that the group maintained earnings momentum into the second quarter, with pre-tax profit nearly doubling year-on-year.
For investors, the key feature of the half-year results is not only the headline profit growth but the combination of stronger deposits, improved asset quality, lower leverage and a wider contribution from non-interest income.
With customer deposits now above N21 trillion and total assets exceeding N30 trillion, First HoldCo is operating from a significantly larger balance-sheet base than at the end of 2025.
As it stands, the challenge for the group in the second half of the year will be to convert its expanding deposit franchise into sustainable asset growth and recurring income while maintaining asset quality and containing operating costs.
