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First HoldCo Targets Over ₦1.2 Trillion Pre-Tax Profit in 2026 Amid Turnaround Strategy
By TechReportersNG
First HoldCo Plc has projected that its profit before tax (PBT) will surpass ₦1.2 trillion by the end of the 2026 financial year, underscoring confidence in the group’s ongoing transformation strategy driven by recapitalisation, tighter cost management, and improved recovery of troubled loans.
The projection was disclosed by the Chief Executive Officer of FirstBank, Olusegun Alebiosu, during an interview with Bloomberg, where he attributed the expected earnings growth to fresh capital injection from the bank’s recapitalisation programme, stronger operational efficiency, and sustained recovery of non-performing assets.
According to Alebiosu, the banking group has already recovered approximately ₦60 billion from bad loans in 2026, a development that has strengthened its balance sheet while helping to reduce operating and funding costs. These improvements, he noted, have contributed to stronger margins during the first half of the year.
The positive outlook follows a remarkable rebound in the group’s financial performance. First HoldCo reported ₦653.5 billion in profit before tax for the first half of 2026, supported by ₦1.93 trillion in gross earnings, representing a year-on-year increase of 16.7 percent. Operating income also climbed by 25.8 percent during the period, reflecting improved business performance across its operations.
The lender’s recovery comes after a challenging 2025 financial year, when earnings were significantly impacted by large impairment charges resulting from the Central Bank of Nigeria’s withdrawal of regulatory forbearance on delinquent loans. The aggressive clean-up of legacy assets has since positioned the institution for stronger profitability.
Alebiosu also expressed optimism that the group’s non-performing loan (NPL) ratio would decline to below 10 percent next year from the current 13.9 percent, as restructuring efforts continue, particularly within oil-sector loan exposures.
Beyond its earnings recovery, First HoldCo has strengthened its position in Nigeria’s banking industry. The company recently emerged as the country’s most valuable banking group by market capitalisation, overtaking long-standing industry leaders following a sustained rally in its share price on the Nigerian Exchange.
The optimistic earnings forecast aligns with the group’s broader capital strengthening plans. Earlier this year, First HoldCo announced plans to raise up to ₦253.1 billion in fresh equity as it pursues a ₦1 trillion paid-up capital base, positioning itself for long-term growth and enhanced competitiveness within Nigeria’s financial services sector.
(c) TechreportsNG
