Nigeria’s Biggest Bank First HoldCo Forecasts Profit Surge Past N1.2 Trillion After Recapitalisation
By Aboki Forex —
First HoldCo Plc, Nigeria’s largest lender by market value, expects profit before tax to exceed 1.2 trillion naira ($876 million) this year. The forecast follows a capital injection that strengthened the bank’s balance sheet, cutting costs and boosting loan recoveries.
The Lagos-based bank overtook Zenith Bank Plc as the nation’s most valuable lender after the recapitalisation. Olusegun Alebiosu, chief executive officer of First Bank, confirmed the profit outlook in an interview.
Capital Injection Drives Stronger Balance Sheet
The bank’s capital raising exercise has improved its financial position. Alebiosu said the fresh funds helped reduce funding costs and accelerated the recovery of non-performing loans. The stronger balance sheet positions First HoldCo to capture more market share in Nigeria’s competitive banking sector.
First HoldCo’s market value now leads the banking index on the Nigerian Exchange. The stock has attracted investor interest since the recapitalisation closed, reflecting confidence in the lender’s growth trajectory.
Profit Forecast Exceeds N1.2 Trillion
The profit before tax target of over 1.2 trillion naira for the year through December marks a significant jump from previous periods. Alebiosu attributed the expected performance to lower impairment charges and improved operational efficiency. The bank also sees higher income from its retail and corporate banking segments.
Analysts note that the profit surge aligns with broader industry trends. Several Nigerian banks have raised capital this year to meet tighter regulatory requirements and expand lending. First HoldCo’s scale gives it an edge in deploying the new funds profitably.
What This Means for the Naira and Nigerian Businesses
For the naira, a stronger bank balance sheet reduces systemic risk in the financial sector. That supports currency stability by lowering the chance of bank failures that could trigger capital flight. For Nigerian businesses, First HoldCo’s lower funding costs could translate into cheaper loans, especially for large corporates and importers. However, consumers may not see immediate relief in lending rates as the bank prioritises profitability in a high-inflation environment.