FirstHoldco Slumps 17.31% as Pre-Earnings Buyers Cash Out
FirstHoldco Plc lost more than 17.31% of its market value on the Nigerian Exchange (NGX) as investors trimmed their holdings in the financial services company after the Q3 earnings release.
The non-operating holding company of FirstBank of Nigeria Limited delivered an impressive earnings performance, growing profit by 63% year on year to N744.612 billion.
Its market value dropped to N5.418 trillion, down from its latest peak of N7.503 trillion.
FirstHoldco’s share price was N144.1 when the group announced its Q3 earnings, and a fresh re-rating ensured the next two trading sessions. Thereafter, First Holdco’s share price fell for three consecutive trading sessions as its bumper earnings led to sell-the-news selling.
The share price declined to N119.15 in a session led by investors seeking to exit positions, with about N50 billion in transaction value on the Nigerian Exchange in the last trading session in October 2026.
Stock analysts said speculators who ramped up First Holdco sold off after the announcement, noting that the share had already captured Q3 earnings expectations.
First Holdco peaked at a 7-day high of N155 before bears struck, despite positive market performance. At the end of Oct, First Holdco closed at 27.5758% below its 52-week high on the Nigerian Exchange.
The banking stock traded against the momentum in the local bourse as profit takers ignored the group’s significant improvement in earnings. FirstHoldco reported that its profit after tax rose by 62.55% year-on-year to N744.61 billion from N458.08 billion in 9M 2025.
Gross earnings rose 8.79% to N2.87 trillion, while operating income grew 10.32% to N1.98 trillion. Earnings was supported by a 48.08% increase in net fee and commission income to N316.43 billion and improved gains from financial instruments measured at fair value through profit or loss.
Its unaudited financials revealed that other operating income also rose sharply to N142.06 billion from N23.83 billion. These gains offset a 16.02% decline in net interest income to N1.26 trillion, as interest income fell by 8.69% while interest expense increased by 5.20%, analysts at Cowry Asset Securities Limited said in a review.
First Holdco profit before tax rose 60.84% to N911.24 billion, supported by higher noninterest income and lower operating expenses.
Operating efficiency improved, with operating expenses declining by 8.07% to N866.60 billion, driven largely by lower staff costs and other operating expenses.
The cost-to-income ratio narrowed to 44% from 52%, while return on equity improved to 19.11% from 13.51% and return on assets rose to 2.29% from 1.64%.
Analysts noted that credit costs also moderated, with loan impairment charges falling by 28.32% to N207.10 billion and the loan loss provision ratio declining to 1.7% from 2.3%.
However, net interest margin compressed to 5.05% from 7.31%, highlighting continued pressure on core lending profitability.
Post-recapitalisation results revealed lending appetite remains restricted. In Q3, loans and advances remained broadly flat at N12.42 trillion, while managed funds increased by 22.35% to N25.57 trillion.
Shareholders’ equity also rose by 16.97% to N3.86 trillion, strengthening the group’s reported equity base. Analysts said the decline in net interest margin and largely stagnant loan book warrant attention.
On the balance sheet, total assets expanded by 18.15% to N32.20 trillion as at September 2026, supported by a 47.92% increase in investment securities to N10.31 trillion. Sterling Financial Bolsters Earnings, Grows Profit by 37% to N97.28bn
