Fitch’s Vote of Confidence: The Story Behind FirstHoldCo’s Resilience

In the world of banking, numbers tell one story. Independent ratings tell another.

While earnings growth, capital raises and balance-sheet strength are important indicators of performance, few endorsements carry as much weight in global financial markets as the opinion of an international credit rating agency.

That is why Fitch Ratings’ recent affirmation of FirstHoldCo Plc and First Bank of Nigeria Limited at a Long-Term Issuer Default Rating of ‘B’ with a Stable Outlook represents far more than a routine rating action. It is an independent validation of the institution’s resilience, strategic direction and capacity to navigate one of the most challenging periods in Nigeria’s banking landscape.

For investors, regulators and stakeholders, Fitch’s verdict sends a clear message that despite economic volatility, regulatory changes and industry-wide recapitalisation pressures, FirstHoldCo remains a stable and strategically positioned financial institution.

The affirmation comes at a defining period for Nigeria’s banking industry. Banks are racing to meet new capital requirements, navigate economic uncertainties and position themselves for future growth in a rapidly evolving financial ecosystem.

Against this backdrop, Fitch’s decision to maintain both FirstHoldCo and FirstBank’s ratings while assigning a Stable Outlook carries significant importance.

The agency cited the Group’s strong domestic franchise, stable funding profile, healthy profitability and improving capital position as key factors supporting the ratings.

It also affirmed the National Long-Term Ratings of both institutions at A+(nga), reflecting their strong creditworthiness relative to peers within Nigeria.

For FirstHoldCo, the rating affirmation represents an external assessment that its business fundamentals remain solid despite operating in a complex macroeconomic environment.

The strength behind the rating

Fitch’s confidence is rooted in more than a century of banking experience and one of the strongest franchises in Nigeria’s financial services industry.

FirstBank remains one of Nigeria’s largest and most recognised banking brands, serving millions of customers through an extensive domestic and international network.

The agency noted that the bank’s scale, diversified earnings streams and stable deposit base continue to provide a strong foundation for sustainable operations.

Equally important is the institution’s approach to risk management and corporate governance.

At a time when investors increasingly scrutinise governance standards and balance-sheet quality, FirstHoldCo has focused on strengthening internal controls, improving asset quality and enhancing capital buffers.

These efforts have helped reinforce confidence in the Group’s long-term sustainability.

Resilience through difficult decisions

One of the defining features of FirstHoldCo’s recent journey has been its willingness to take difficult but necessary decisions.

The Group recorded an impairment charge of N826.3 billion in its 2025 financial year as part of a comprehensive balance-sheet clean-up and legacy asset resolution programme.

While the move weighed on short-term profitability, it demonstrated management’s commitment to strengthening the institution’s fundamentals rather than pursuing temporary gains.

Even with the significant provisioning, the Group remained profitable, posting gross earnings of N3.4 trillion and profit before tax of N235 billion in 2025.

For many analysts, this reflected a key characteristic of resilient institutions: the ability to absorb short-term pain in pursuit of long-term stability.

Stronger capital, stronger confidence

Fitch’s affirmation also coincides with major progress in the Group’s recapitalisation journey.

FirstBank successfully met the Central Bank of Nigeria’s N500 billion minimum capital requirement for banks with international authorisation before the end of 2025.

Rather than stopping at regulatory compliance, the Group has signalled even bigger ambitions.

At its 14th Annual General Meeting, shareholders approved plans to raise up to N253.099 billion to achieve a paid-up capital base of N1 trillion-double the regulatory threshold.

The proposed capital raise is expected to further strengthen FirstHoldCo’s balance sheet, improve financial flexibility and create additional capacity for growth opportunities across its businesses.

Importantly, Fitch identified the Group’s capital strengthening initiatives as a positive development that could enhance its financial profile over time.

A rebound that reinforces the narrative

If Fitch’s rating affirmation reflects confidence in the institution’s stability, FirstHoldCo’s first-quarter 2026 results provide evidence of renewed momentum.

The Group delivered one of the strongest quarterly performances in the Nigerian banking industry, with gross earnings rising by 26.8 per cent to N942 billion.

Profit before tax surged by 72.2 per cent to N321.1 billion, significantly outperforming the corresponding period of 2025.

The performance suggests that the balance-sheet restructuring and earnings retention strategies pursued in recent years are beginning to yield tangible results.

More importantly, it supports Fitch’s assessment that the institution possesses the capacity to generate sustainable earnings while maintaining financial stability.

Beyond ratings and results

The significance of Fitch’s endorsement extends beyond the banking halls and capital markets. For shareholders, it reinforces confidence in the institution’s long-term value proposition. For customers, it provides reassurance about the stability of one of Nigeria’s most important financial institutions.

For investors, it offers independent confirmation that FirstHoldCo’s strategy is producing measurable outcomes. And for the wider banking industry, it demonstrates how disciplined governance, prudent capital management and strategic execution can create resilience even during periods of uncertainty.

The road ahead

As Nigeria’s financial services sector enters a new phase characterised by recapitalisation, technological disruption and heightened competition, institutions will increasingly be judged not only by their earnings but also by their ability to sustain growth, manage risk and maintain stakeholder confidence.

In that context, Fitch’s affirmation of FirstHoldCo and FirstBank represents more than a rating action.

It is a vote of confidence in a strategy built on resilience, capital strength, prudent governance and long-term value creation.

The Group’s strong earnings performance, successful recapitalisation efforts and ambitious plans to build a N1 trillion capital base further reinforce that narrative.

For FirstHoldCo, the message from Fitch is clear: resilience is no longer just a response to challenges; it is becoming a competitive advantage.