First HoldCo Plc reported a strong profit in the first quarter of 2026, even as it faced heavy pressure from foreign exchange losses, rising costs, and a large cash outflow.
The group’s profit rose to ₦267.8 billion, but its operations were weighed down by a ₦1.98 trillion net cash outflow, weaker FX gains, and higher expenses across staff, technology, and loan provisions.
A review of First HoldCo Q1 2026 results released on Thursday, shows that the company’s profit for the period rose by 56.5 per cent to ₦267.8 billion, compared to ₦171.1 billion in the same period of 2025.
The growth was driven mainly by stronger net interest income and major gains from investment securities.
However, despite the sharp rise in profit, the group’s operations came under pressure from several financial and operational challenges during the quarter, Pinnacle Daily can report.
One of the biggest setbacks was the collapse in foreign exchange income, as the gains dropped sharply from ₦80.5 billion in Q1 2025 to just ₦4.4 billion in Q1 2026.
This came after the group recorded a foreign exchange revaluation loss of ₦22.9 billion, reversing the ₦66.5 billion gain posted a year earlier.
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Operating costs also rose significantly as total expenses climbed to ₦187.7 billion from ₦161.3 billion in the same period last year.
The increase was driven largely by higher staff costs and technology spending.
Personnel expenses rose to ₦89.3 billion from ₦67.6 billion, while IT maintenance costs nearly tripled to ₦29 billion from ₦10.5 billion.
Also, operational and other losses almost doubled to ₦7.9 billion.
At the same time, the group increased provisions for possible bad loans, with impairment charges rising to ₦40.4 billion.
The increase was mainly linked to losses on loans and advances to customers.
The bank also suffered a ₦97.6 billion other comprehensive loss due to market volatility.
This was heavily impacted by a ₦116.8 billion loss from changes in the fair value of debt instruments.
Cash flow pressures also remained a concern, as First HoldCo recorded a net cash outflow of about ₦1.98 trillion from operating activities during the quarter.
In addition, a large part of the group’s liquidity remained tied down by regulation, with ₦4.19 trillion held as mandatory reserve deposits with the central bank and unavailable for daily operations.
Despite the challenges, the group’s core banking business remained strong, as net interest income rose to ₦438.8 billion from ₦365.2 billion, supported by increased earnings from loans and advances to customers.
The bank also benefited from a sharp jump in gains from investment securities, which rose to ₦46.6 billion from just ₦136 million a year earlier.
Gains from financial instruments also rebounded to ₦45.3 billion after a loss position in Q1 2025.
Loans to customers increased to ₦9.44 trillion from ₦8.97 trillion at the end of December 2025, although customer deposits fell slightly to ₦18.38 trillion.
The group’s total assets stood at ₦26.88 trillion, while total equity rose to ₦3.47 trillion.
The market reacted positively to the results, with the company’s share price closing the period at ₦50, almost double the ₦28.15 recorded a year earlier.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X