First HoldCo Beats 10 Major African Banks on Return on Equity
- First HoldCo recorded a 31.63% return on average equity in Q1 2026, topping both Nigerian and South African tier-1 banks in its investor presentation comparison
- The financial services group's shares have surged 194.4% this year, making it the best-performing Nigerian bank stock in the period
- Chairman Femi Otedola, who owns about 27.6% of First HoldCo, has signalled plans to raise his stake above 51%
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
First HoldCo Plc posted a 31.63% return on average equity (ROAE) in the first quarter of 2026, outperforming every other tier-1 bank in Nigeria and the six major South African lenders included in its investor comparison, according to the company's investor presentation.
The figure placed First HoldCo ahead of Zenith Bank at 24.90%, Guaranty Trust Holding Company (GTCO) at 24.80%, Access Holdings at 19.86% and United Bank for Africa (UBA) at 13.70%.
Source: Getty Images
The median ROAE among the five Nigerian banks sat at 24.80%, meaning First HoldCo's result was significantly above the group's midpoint.
First HoldCo vs South African banks
The comparison with South African lenders, though measured over different periods, also revealed a sizeable gap.
Capitec came closest with a 29.12% return, followed by FirstRand at 19.58%, Standard Bank at 18.73%, Absa at 13.67%, Investec at 12.46% and Nedbank at 7.44%. The median across those six banks was 16.20%, BilionaireAfrica reports.
By the end of the first half of 2026, First HoldCo's ROAE had settled at 30.37%, according to its results presentation.
Despite the strong returns, investors are paying a considerably higher price for First HoldCo shares than for most of its peers.
The company trades at about 1.91 times book value and 17.56 times earnings, well above the Nigerian median of 1.01 times book value and 5.65 times earnings.
Access Holdings, for instance, trades at 0.43 times book value, while UBA is at 0.49 times book value.
Otedola's stake and share rally
First HoldCo's shares hit a record N159.90 on September 1 and have gained 194.4% so far this year as of September 14, making the stock the best performer among Nigerian banks over the period.
Much of the buying interest has been tied to the consistent share purchases by the company's chairman, Femi Otedola, who now holds about 27.6% of the group and has publicly said he intends to push his stake past 51%.
The wider Nigerian banking sector has also had a strong run.
Source: Getty Images
The NGX Banking Index gained 67.96% in the year to September 14, outpacing the broader market's 56.35% rise.
The combined market value of 12 major banks climbed from N16.44 trillion in December to N27.61 trillion over the same period.
Investors continue to watch how much of Nigerian banks' reported profits come from recurring operations such as lending and fees, rather than currency revaluation gains triggered by the naira's depreciation following the 2023 foreign exchange reforms.
First HoldCo Joins FTSE Frontier 50
Earlier, Legit.ng reported that First HoldCo has also been included in the FTSE Frontier 50 Index, with FTSE Russell selecting it alongside Dangote Cement, MTN Nigeria, Aradel Holdings, GTCO and Zenith Bank as six Nigerian entries into the 50-stock benchmark.
The changes take effect after the close of trading on September 18, with the revised index live from September 21. Nigeria itself is returning to FTSE Russell's Frontier Market classification on the same date, having been listed as an unclassified market since 2023.
First HoldCo is the parent company of FirstBank, Nigeria's oldest bank, founded in 1894.
Source: Legit.ng
