FirstHoldco Jumps 25% on Post-Earnings Momentum, Firm Cuts TP
First Bank of Nigeria (FBN) non-operating holding company, FirstHoldco, extended its pre-earnings bargain hunting on the Nigerian Exchange (NGX) as shareholders and investors increased their holdings in the financial services group.
The Marina-headquartered elephant-branded financial services company consolidated its market re-rating following a significant year-on-year spike in earnings performance.
Its share price, with a 5-day gain of 25.6% last week, extends year-to-date price appreciation to approximately 233%, trading data review at MarketForces Africa indicates.
Meanwhile, equity analysts at CSL Stockbrokers Limited have just reduced the target price (TP) for First Holdco to N51.55 per share, based on a reference price of N95.95, which was its opening price last week.
The investment firm kept First Holdco on hold rating, suggesting the group shares have been overbought on sentiment as non-core banking operations drove H1-2026 momentum.
“We have a hold recommendation on FirstHoldco with a target price of N51.55/s. Current price: N95.95/s”, CSL Stockbrokers Limited told investors in a review.
According to trading data from the Nigerian Exchange (NGX), First Holdco closed at N120.50 on Friday, when a huge transaction worth N4.331 billion on 35.377 million units nudged the share price lower from N120.90 quoted the previous day.
The bank experienced strong market activities driven by unusual volume across the five trading sessions, mostly led by buy-side actors in the Nigerian stock market. The group reached a 52-week high of N128 but retreated due to profit-taking.
At the close of the trading session on Friday, First Holdco Plc’s 45.475 billion outstanding shares were valued at N5.479 trillion, pushing the group to the most valuable in the banking sector in terms of market capitalisation.
Pre- and post-earnings rally lifted First Holdco from N69 to N120 per share in the short term, aided by significant buy action of its single largest shareholder and its current chairman, Femi Otedola,
Broadstreet analysts have adjusted their view in the light of rising keyman risk in First Holdco, with one individual holding more than a fifth of the financial services group.
Profit Analysis
First Holdco bolstered the group’s bottom line, though its non-core banking operations drove earnings momentum in the first half of 2026. Pre-tax profit grew 83.5% to N653.5 billion, while net profit grew by 81.6% year on year to N526.1 billion.
Its financial results reflect resilient earnings growth, supported primarily by a significant expansion in non-interest income, despite a modest decline in net interest Income.
The group’s interest Income fell by 2.7% year-on-year (y/y) to N1.4 trillion, as the earnings yield moderated to 15.1% in H1 2026 from 16.5% in H1 2025.
Net loans to customers increased marginally by 6.1% compared with December 2025, versus a 16.2% surge in customer deposits, reflecting a tightened lending appetite.
This suggests First Holdco was about to recover its huge distressed loans from clients, especially in the oil and gas sector, where it has significant exposure.
This paid off with more than N90 billion recollected in the period, but non-performing loans still maintained an uptrend.
Amidst an elevated interest rate environment. The group’s financials showed a 2.6% decline in interest paid to providers of funds. Hence, the group’s cost of funds improved to 4.3%, from 4.8% in H1 2025.
As First Holdco’s net interest income dropped 2.8%, net interest margin also retreated in the first half to 9.5%, from 10.4% in the equivalent period in 2025.
Reflecting its key performance driver, net fee and commission income rose by 28.7% year on year. All fees and income lines edged higher apart from about a 41% decline in commission on guarantees and a 14% drop in account maintenance fees.
Other non-interest income, which included FX gain, gain on fair value of its financial instrument and, among others, increased significantly by 528.7% year on year to N318.6 billion.
Earnings Quality Review
The group saw a net gain of N60.6 billion on the sale of investment securities, a multiple-fold surge when compared with N7.5 billion in H1 2025.
It also recorded a net gain of N65.8 billion on financial instruments at fair value through profit or loss, compared with a net loss of N53.7 billion in the corresponding period of 2025.
First Holdco other operating Income expanded to N136.7 billion, comprising N91.9 billion in recoveries and N44.8 billion in other operating income, compared with N13.1 billion recorded in H1 2025.
Asset Quality
Based on its financial statement, First Holdco recorded a 37.4% year-on-year decline in impairment charge, settling at N116.1 billion. Asset quality, however, remained under pressure, with the Non-Performing Loan (NPL) ratio rising to 13.9% from 12.9% a year earlier.
The group booked significant impairment charges earlier as part of efforts to clean its balance sheet. The Holdco is among financial institutions ringfenced by the Apex Bank with a capital adequacy ratio below the industry benchmark as a result of significant stage 3 loan pressure on its balance sheet.
With plans for additional capital raised, First Holdco is projected to meet Central Bank capital compliance after September, according to global rating agency Fitch. #FirstHoldco Jumps 25% on Post-Earnings Momentum, Firm Cuts TP# FirstHoldco Momentum Eases, Investors Assessing Earnings Quality
